Mortgage Calculator

Use our free Mortgage Calculator to quickly estimate your monthly mortgage payment, based on key inputs like loan amount, interest rate, and loan term. Perfect for homebuyers and investors.

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Mortgage Formula

Monthly Payment (Principal & Interest) =\nP × [ r(1 + r)^n ÷ ((1 + r)^n − 1) ]\n\nWhere:\nP = loan principal\nr = monthly interest rate (APR ÷ 12)\nn = total number of payments (months)
Example:
Loan Amount = $300,000; APR = 6%; Term = 30 years (360 months)\nMonthly P&I ≈ $1,799\nAdd: Property Tax $3,600/yr → $300/mo; Insurance $1,200/yr → $100/mo; HOA $50/mo\nEstimated Total Monthly Payment ≈ $2,249

Knowing how to calculate your mortgage payment is key to planning homeownership costs. Not a fan of manual math? Use our free Mortgage Calculator for instant results.

How this mortgage calculator works

This calculator estimates monthly mortgage payments by combining loan amount, interest rate, and loan term using the standard amortization formula. It also adds optional property tax, insurance, and HOA dues to give a more realistic monthly cost estimate.

When to use this mortgage calculator

When comparing different home prices and down payment scenarios

To test how interest rate changes affect affordability

While budgeting monthly housing expenses

For pre-approval planning and negotiations

To benchmark payments with other loan types or terms

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Average Profit Margins by Industry

Understand how mortgage and housing services compare to other industries. Below are typical profit margin ranges across common service businesses:

Mortgage Lenders

15–25%
net margin

Real Estate Agents/Brokerages

15–30%
net margin

Roofing Contractors

20–40%
net margin

HVAC Contractors

10–20%
net margin

Plumbing Contractors

20–35%
net margin

Electrical Contractors

15–25%
net margin

Cleaning Services

50–70%
net margin

Lawn Care

40–60%
net margin

Construction/Contracting

15–30%
net margin

These benchmarks help homebuyers and real estate professionals evaluate whether mortgage services and housing costs are competitive and profitable.

Frequently Asked Questions

It provides a close estimate using your inputs. Actual payments may vary depending on lender fees, PMI, and local taxes.

Loan amount, interest rate, loan term, and escrow items (taxes, insurance, HOA).

Yes—for ARMs, input your current interest rate for near-term estimates.

Absolutely. It's a fast way to check rental property cash flow assumptions.

Yes. Enter values based on your local rates and property type.

No. Add PMI and closing costs separately if required by your lender.

Yes—divide your monthly payment by two and pay every two weeks to save on interest.

Pair it with ServiceAgent.ai to automate financial planning, proposals, and tracking.

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