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Simple Calculators

Mortgage Calculator

Calculate your monthly mortgage payments and see how much home you can afford

$
$

20.00% of the price

%
years

Yearly costs (optional)

$
$
$
$

PMI not required with 20%+ down payment. Auto-filled at 0.5% of the loan per year when required; type your own to override.

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Quick summary

Enter the home price, down payment, interest rate, and loan term to get your monthly principal and interest; add annual property tax, insurance, PMI, and HOA fees to see the full monthly payment. Example: a $300,000 home with 20% down at 6.5% for 30 years costs about $1,516.96/month in principal and interest. Results are estimates, not a loan offer.

Reviewed by Simple Calculators TeamLast reviewed

For planning only — not financial or tax advice. Results are estimates based on your inputs and the stated assumptions. Confirm important decisions with a qualified professional.

How to use this calculator

  1. Enter the Home Price and your Down Payment in dollars; the calculator shows the down payment as a percentage of the price.
  2. Enter the Interest Rate as an annual percentage and the Loan Term in years (for example, 30 or 15).
  3. Under Additional Costs (Annual), enter your yearly Property Tax and Home Insurance premium.
  4. Check the PMI (Private Mortgage Insurance) field: it fills in automatically at 0.5% of the loan per year when you put down less than 20%, and you can overwrite it with a lender quote.
  5. Enter annual HOA Fees if the property has them, then click Calculate Mortgage Payment (results also update as you type).
  6. Read Your Monthly Payment for the all-in figure, then compare Principal & Interest, Taxes & Insurance, Total Interest, and the first-year schedule to see where your money goes.

Mathematical Formulas & Examples

Principal & Interest Payment (P&I)

P&I=P×r(1+r)n(1+r)n−1P\&I = P \times \frac{r(1+r)^n}{(1+r)^n - 1}
P
Loan amount (home price − down payment)
r
Monthly interest rate (annual rate ÷ 12 ÷ 100)
n
Total number of monthly payments (loan term in years × 12)

Worked example

A $300,000 home with $60,000 down (20%) at 6.5% for 30 years

Given
P = $240,000 (300,000 − 60,000)
r = 0.0054167 (6.5% ÷ 12)
n = 360 months
Calculation
P&I=240,000×0.0054167(1.0054167)360(1.0054167)360−1P\&I = 240{,}000 \times \frac{0.0054167(1.0054167)^{360}}{(1.0054167)^{360} - 1}
Result
P&I ≈ $1,516.96 per month

Total Monthly Payment (PITI + HOA)

Monthly=P&I+Property Tax+Insurance+PMI+HOA12\text{Monthly} = P\&I + \frac{\text{Property Tax} + \text{Insurance} + \text{PMI} + \text{HOA}}{12}
P&I
Monthly principal and interest payment
Property Tax
Annual property tax
Insurance
Annual homeowner's insurance premium
PMI
Annual private mortgage insurance (0 with 20%+ down)
HOA
Annual homeowners association fees

Worked example

Same loan with $3,600/yr property tax, $1,200/yr insurance, no PMI, and $1,800/yr HOA

Given
P&I = $1,516.96
Property Tax = $3,600 per year
Insurance = $1,200 per year
PMI = $0 (20% down)
HOA = $1,800 per year
Calculation
Monthly=1,516.96+3,600+1,200+0+1,80012=1,516.96+550\text{Monthly} = 1{,}516.96 + \frac{3{,}600 + 1{,}200 + 0 + 1{,}800}{12} = 1{,}516.96 + 550
Result
Total ≈ $2,066.96 per month

Loan-to-Value Ratio (LTV)

LTV=Home Price−Down PaymentHome Price×100LTV = \frac{\text{Home Price} - \text{Down Payment}}{\text{Home Price}} \times 100
Home Price
Purchase price of the home
Down Payment
Cash you put down at closing

Worked example

LTV for the $300,000 home with $60,000 down

Given
Home Price = $300,000
Down Payment = $60,000
Calculation
LTV=300,000−60,000300,000×100LTV = \frac{300{,}000 - 60{,}000}{300{,}000} \times 100
Result
LTV = 80% (PMI is flagged only above 80%)

Frequently asked questions

How is my monthly mortgage payment calculated?

Your monthly payment is principal and interest from the standard amortization formula, plus one-twelfth of your annual property tax, insurance, PMI, and HOA fees. The calculator subtracts your down payment from the home price to get the loan amount, divides the annual rate by 12, and multiplies the term by 12 to get the number of payments. The fixed P&I amount stays the same every month for a fixed-rate loan.

What is PMI and when do I pay it?

PMI (private mortgage insurance) is a fee conventional lenders usually charge when your down payment is under 20% of the home price, meaning the loan-to-value ratio is above 80%. This calculator fills in PMI automatically at 0.5% of the loan amount per year when your LTV is above 80%. Actual PMI pricing depends on your credit score, down payment, and lender, so replace the estimate with a real quote when you have one.

How much house can I afford?

A common lender guideline is that total housing costs should stay at or below about 28% of your gross monthly income. That includes principal, interest, property tax, insurance, PMI, and HOA fees. Lenders also check that all of your debt payments together stay within a back-end limit, often around 36%. To work backward from your income to a price, use the home affordability calculator instead of this one.

Should I choose a 15-year or 30-year mortgage?

A 15-year mortgage costs more each month but far less in total interest, while a 30-year mortgage lowers the monthly payment at the cost of much more interest. On a $240,000 loan at 6.5%, this calculator shows about $2,090.66/month and $136,318 total interest over 15 years versus $1,516.96/month and $306,107 over 30 years. Real 15-year loans often carry lower rates, which widens the gap.

Why is so much of my early payment interest?

Interest is charged on the remaining balance, so it is largest at the start of the loan when you owe the most. In the first month of a $240,000 loan at 6.5%, interest is $1,300 ($240,000 × 0.065 ÷ 12) and only about $216.96 goes to principal. Each month the balance drops a little, so the interest share shrinks and the principal share grows, as the First Year Payment Schedule shows.

What does the Total Cost figure include?

Total Cost is every scheduled payment over the full term: principal, interest, and the taxes, insurance, PMI, and HOA fees you entered, multiplied out over all months. It does not include your down payment, closing costs, or future changes in tax and insurance bills. It also assumes PMI is paid for the whole term, while in practice conventional PMI can usually be removed once you build enough equity.

What are common mistakes when estimating a mortgage payment?

The most common mistake is looking only at principal and interest and forgetting property tax, insurance, PMI, and HOA fees, which can add hundreds of dollars a month. Another is entering monthly amounts in fields that expect annual figures; every cost under Additional Costs (Annual) is a yearly amount. Finally, using an advertised rate instead of a quoted rate for your credit profile can understate the payment.

Key terms

Principal
The amount of money you borrow from the lender to purchase your home
Interest Rate
The annual rate the lender charges on the loan balance; it does not include fees, which are reflected in the APR
Amortization
The process of paying off debt over time through regular payments of principal and interest
Escrow
A third-party account that holds funds for property taxes and insurance payments

Methodology, sources & limitations

This page shows the formula, assumptions, and limitations used for this estimate. Rates, thresholds, and other time-sensitive inputs can change, so verify them against the relevant official source before relying on a result.

For our review approach and the primary sources we consult, see the methodology and source policy. If you spot an outdated figure or formula, please contact us with a correction.