Free calculator
Mortgage Payment Calculator
Estimate your monthly mortgage payment, including principal, interest, property taxes and insurance, and see how much interest you'd pay over the loan.
Your down payment is under 20%. With a conventional loan, your lender may require private mortgage insurance, which would add to this payment.
| Year | Interest paid | Principal paid | Loan balance |
|---|
An estimate for a fixed-rate loan. It doesn't include mortgage insurance, closing costs or changes in taxes and insurance. Your lender's Loan Estimate shows your actual terms.
Short answer: This calculator estimates your monthly mortgage payment from the home price, down payment, interest rate and loan term, then adds property taxes, homeowners insurance and HOA dues. It also shows how much interest you'd pay over the life of a fixed-rate loan and how your balance falls year by year.
What Goes Into a Mortgage Payment?
The Consumer Financial Protection Bureau describes four basic parts of a monthly mortgage payment, known as PITI:
| Part | What it pays for |
|---|---|
| Principal | Repays the amount you borrowed |
| Interest | The lender's charge for the loan |
| Taxes | Your property taxes, often collected through escrow |
| Insurance | Your homeowners insurance, often collected through escrow |
If you put down less than 20% on a conventional loan, your lender may also require private mortgage insurance, which is usually added to your monthly payment. The calculator flags this but doesn't estimate its cost.
How Is the Monthly Payment Calculated?
Principal and interest use the standard formula for a fixed-rate loan, which spreads repayment evenly across the term. The calculator then adds one-twelfth of your yearly property tax and insurance, plus any monthly HOA dues.
Why Does So Much Go to Interest at First?
Interest is charged on your remaining balance. Early in the loan, when the balance is highest, most of each payment goes to interest. Over time, as the balance falls, a growing share goes to principal, and near the end most of each payment pays off the last of the principal. The yearly table in the calculator shows this shift.
How Can You Use the Results?
- Compare loan terms. A 15-year loan has higher payments than a 30-year loan but much less total interest.
- Test different down payments, including whether reaching 20% avoids mortgage insurance.
- Compare rates from several lenders, since a small rate difference changes both the payment and the total interest.
Your lender's Loan Estimate is the official version of these numbers for your specific loan. For more, see our home and mortgage guides.
Frequently asked questions
What is included in a monthly mortgage payment?
The CFPB describes four basic elements, known as PITI: principal, interest, taxes and insurance. Taxes and insurance are often paid through an escrow account.
Why does most of my early mortgage payment go to interest?
Interest is charged on the loan balance. Early on, the balance is highest, so most of each payment covers interest. As the balance falls, more of each payment goes to principal.
Do I need mortgage insurance with less than 20% down?
With a conventional loan and a down payment of less than 20%, your lender may require private mortgage insurance, which is usually added to your monthly payment.
How accurate is this mortgage calculator?
It's an estimate for a fixed-rate loan. Your actual payment depends on your rate, fees, mortgage insurance and local taxes. Your lender's Loan Estimate shows your actual terms.
Sources
- CFPB: What is PITI?
- CFPB: How does paying down a mortgage work?
- CFPB: What is private mortgage insurance?
This guide is general information, not personal advice. Your situation may differ, so consider talking with a qualified professional, such as a fiduciary financial adviser, CPA or licensed agent, before making a decision.