Mortgage Calculator

Calculate your monthly mortgage payment with taxes, insurance, and PMI included. Free, instant, and accurate.

How to Calculate Your Mortgage Payment

Understanding your mortgage payment is the first step in homebuying. Our free mortgage calculator helps you estimate your monthly housing costs including principal, interest, property taxes, insurance, and PMI.

The Mortgage Payment Formula

The core mortgage payment formula is: M = P[r(1+r)^n] / [(1+r)^n - 1]

What's Included in a Mortgage Payment (PITI)

Your total monthly housing payment typically includes PITI: Principal, Interest, Taxes, and Insurance. If your down payment is less than 20%, you'll also pay Private Mortgage Insurance (PMI).

Tips to Lower Your Mortgage Payment

  1. Increase your down payment — At least 20% eliminates PMI
  2. Improve your credit score — Higher scores qualify for lower rates
  3. Choose a longer loan term — 30-year vs 15-year reduces monthly payments
  4. Shop around for rates — Compare at least 3 lenders
  5. Buy discount points — Pay upfront to reduce your rate

FAQ

How much mortgage can I afford?
A common rule is the 28/36 rule: your monthly mortgage payment shouldn't exceed 28% of your gross monthly income, and total debt payments shouldn't exceed 36%. Use our calculator to model different scenarios.
What is PMI and when can I remove it?
Private Mortgage Insurance (PMI) is required when your down payment is less than 20%. You can request removal once your loan-to-value ratio reaches 80%, and it's automatically removed at 78%.
What's the difference between APR and interest rate?
The interest rate is the cost of borrowing the principal. APR includes the interest rate plus other fees (origination, discount points), giving you the true cost of the loan.
Should I get a 15-year or 30-year mortgage?
A 15-year mortgage has higher monthly payments but significantly less total interest. A 30-year mortgage offers lower payments and more flexibility. Use the calculator to compare both.
How accurate is this mortgage calculator?
Our calculator uses the standard amortization formula and is highly accurate for estimation. Actual payments may vary based on your lender's specific fees and your exact closing date.

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