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 your monthly mortgage payment using your loan amount, interest rate, and term. It’s designed to provide a fast, reliable way to gauge affordability and compare loan scenarios side by side.

It works by applying the amortization formula above and incorporating optional add-ons like property taxes, homeowners insurance, and PMI (private mortgage insurance).

Loan amount: The total you plan to borrow after your down payment.
Interest rate: The annual percentage rate (APR) you’re offered by the lender.
Loan term: The repayment period, typically 15, 20, or 30 years.
Down payment: A higher down payment lowers your monthly cost and can eliminate PMI.
Taxes and insurance: Optional inputs that give a more realistic monthly estimate including escrow.

The calculator assumes fixed-rate loans by default but can be adapted for adjustable-rate scenarios. Local tax and insurance averages can cause payment variations by region.

When to use this mortgage calculator

Use this calculator any time you need to understand what your monthly mortgage will look like or test how different inputs affect affordability.

Before house hunting: See what price range fits your monthly budget.

When comparing lenders: Evaluate how rate quotes change total cost.

During refinancing: Estimate potential savings from a lower rate or shorter term.

While planning extra payments: See how biweekly or additional principal payments shorten loan length.

For investment properties: Model cash flow and ROI based on projected rent and mortgage costs.

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Average mortgage costs by industry

Understand how mortgage rates and payments compare across the U.S. Use these averages to gauge competitiveness and affordability.

Average 30-year fixed mortgage rate

6.5–7.0%
net margin

Average 15-year fixed mortgage rate

5.8–6.4%
net margin

Typical down payment

10–20% of home price
net margin

Property taxes

0.8–2.0% of home value annually
net margin

Private Mortgage Insurance (PMI)

0.5–1.5% of loan balance annually
net margin

Homeowners insurance

$1,200–$2,500/year
net margin

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

Frequently Asked Questions

This calculator provides an accurate estimate of monthly principal and interest payments. Adding taxes and insurance inputs makes results even closer to real lender quotes.

Interest rate, loan amount, and term length have the biggest impact. Taxes, insurance, and PMI also add to your total monthly cost.

A mortgage payment is the amount you pay your lender each month to repay your home loan. It usually includes principal, interest, and sometimes property taxes and homeowners insurance.

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

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

Fixed-rate loans have constant payments for the entire term. Adjustable-rate loans may start lower but can increase over time based on market conditions.

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

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