Loan Mortgage Payment Calculator
Estimate your monthly mortgage payment, total interest paid, and see a year-by-year payoff schedule. Works for home purchases and refinances.
| Principal & interest | $0 |
| Property tax (monthly) | $0 |
| Insurance (monthly) | $0 |
| Loan amount | $0 |
| Total interest over loan life | $0 |
| Total of all payments | $0 |
How it works
Your principal & interest payment uses the standard amortization formula: M = P × r(1+r)n / ((1+r)n − 1), where P is the loan amount, r the monthly rate, and n the number of payments. Property tax and insurance are divided by 12 and added to get the full monthly housing cost (PITI).
Formula & worked example
Formula: M = P × r(1+r)n ÷ ((1+r)n − 1), where P is the loan amount, r the monthly interest rate and n the number of payments. The full monthly cost (PITI) adds property tax and insurance, each divided by 12.
Worked example: A $300,000 loan at 6.5% for 30 years gives principal & interest of $1,896.20/month — before property tax and insurance are added.
When to use this
- You have a lender quote and want the full monthly cost — PITI, not just principal and interest — before you fall for the house.
- You are deciding between a 15-year and a 30-year term and want the interest difference in dollars, not vibes.
- You are testing how much down payment avoids PMI territory and what a bigger down payment actually saves.
- You are comparing two listings at different prices and tax rates on one honest monthly number.
How to use it, step by step
- Enter the home price and your down payment — the loan amount is the difference.
- Set the interest rate and term from your quote (30, 20 or 15 years are the common ones).
- Add yearly property tax and homeowner insurance; both ride inside most real payments.
- Read the PITI total, then re-run with the other term to see the interest trade.
- Try 10% vs 20% down to see the PMI line move.
What the inputs mean
| Input | What it is | Typical values |
|---|---|---|
| Home price | The purchase price you are modelling | $250k–$600k in most markets |
| Down payment | Cash paid upfront, subtracted from the price | 3.5% (FHA) to 20%+ (no PMI) |
| Interest rate | The annual rate on the loan | Recent years: roughly 5–8% |
| Loan term | Years to repay | 30, 20 or 15 |
| Property tax / insurance | Yearly amounts, divided by 12 into the payment | Tax 0.3–2%+ of price by state |
Another worked example
A $400,000 home with $40,000 down (a $360,000 loan) at 7% over 15 years: principal & interest is $3,235.78 a month. Add $4,800/yr of property tax and $1,800/yr of insurance and the true PITI is $3,785.78 — the number your budget actually has to carry, and $550 a month more than the loan payment alone.
Frequently asked questions
How much house can I afford?
A common rule is the 28/36 rule: spend no more than 28% of gross monthly income on housing and 36% on all debt. Plug candidate prices into this calculator to test them.
Does a bigger down payment lower my payment a lot?
Yes two ways: it shrinks the loan amount, and at 20%+ down you avoid PMI. Try 10% vs 20% above to see the difference.
Is a 15-year mortgage worth it?
Rates are usually lower and you pay far less interest, but the monthly payment jumps ~40–50%. Compare both terms above before deciding.
What is not included in this payment?
HOA dues, PMI (when the down payment is under 20%), and maintenance. PITI is the lender's core four; budget another 1–2% of the home's value per year for upkeep on top.
Why is my lender's quote slightly different?
Lenders round the rate differently, escrow tax and insurance with cushions, and may price discount points into the quote. If the difference is more than a few dollars, ask which assumption moved — it is usually the tax or insurance estimate.
📊 Want the full investor picture?
Our Rental Property Analyzer combines mortgage math with cap rate and cash-on-cash return.