Mortgage Calculator
Calculate your estimated monthly mortgage payment. Enter the home price, down payment, interest rate, and loan term to see your monthly payment breakdown.
Home Price
Down Payment
$020% of home price
PMI will be required because down payment is less than 20%.
Loan Details
Additional Monthly Costs
Optional: Include property tax and insurance in your monthly estimate
Monthly Payment
Loan Summary
Country-Specific Calculators
Mortgages work differently around the world. Use a calculator tailored to your country for more accurate estimates.
How Mortgage Payments Work
Determine Your Loan Amount
Subtract your down payment from the home price. A larger down payment means borrowing less and lower monthly payments.
Factor in Interest Rate
Your interest rate determines how much you pay to borrow money. Even a small rate difference can save thousands over the loan term.
Choose Your Loan Term
Shorter terms (15 years) have higher monthly payments but less total interest. Longer terms (30 years) have lower payments but more interest over time.
Add Property Taxes & Insurance
Don't forget these additional costs! Property taxes and homeowner's insurance are often included in your monthly mortgage payment.
Consider Mortgage Insurance
If your down payment is less than 20%, you may need to pay PMI (Private Mortgage Insurance) until you build enough equity.
Frequently Asked Questions
How is the monthly mortgage payment calculated?
Monthly mortgage payments are calculated using the loan amount (home price minus down payment), interest rate, and loan term. The formula uses amortization to determine a fixed payment that covers both principal and interest over the life of the loan. The formula is: M = P[r(1+r)^n]/[(1+r)^n-1], where M is monthly payment, P is principal, r is monthly interest rate, and n is number of payments.
What is PMI and when is it required?
PMI (Private Mortgage Insurance) protects the lender if you default on your loan. It's typically required when your down payment is less than 20% of the home price. PMI usually costs 0.3% to 1.5% of the original loan amount per year. You can usually remove PMI once you have 20% equity in your home.
Should I choose a 15-year or 30-year mortgage?
A 15-year mortgage has higher monthly payments but saves significantly on total interest. A 30-year mortgage has lower monthly payments but you'll pay more interest over time. Choose 15 years if you can afford higher payments and want to build equity faster. Choose 30 years if you need lower monthly payments or want flexibility.
How much house can I afford?
A common guideline is to keep your total housing costs (mortgage, taxes, insurance) under 28% of your gross monthly income. Your total debt payments should be under 36% of your income. Use our Daily Budget Calculator to understand your current expenses before committing to a mortgage payment.
What other costs should I budget for when buying a home?
Beyond your monthly mortgage payment, budget for: closing costs (2-5% of home price), home inspection, moving expenses, immediate repairs or renovations, furniture and appliances, emergency fund for unexpected repairs, HOA fees (if applicable), and higher utility bills compared to renting.