How This Calculator Works
This mortgage payment calculator uses the standard amortization formula to determine your monthly payment. It accounts for principal, interest, property taxes, and homeowners insurance—the four main components of most mortgage payments.
The calculation assumes a fixed-rate mortgage, meaning your interest rate and payment remain the same throughout the loan term. As you pay down the principal, a larger portion of each payment goes toward equity rather than interest.
Understanding the Numbers
Your monthly payment is composed of four parts: principal and interest (the mortgage payment itself), plus property taxes and homeowners insurance divided by 12. The breakdown shows you exactly where your money goes each month.
The total interest displayed is the cumulative interest you'll pay over the entire loan term. For example, on a 30-year mortgage, you may pay nearly as much in interest as you do on the original loan amount.
How to Use This Tool
Start by entering your home price and intended down payment. Then add your expected interest rate (check with lenders for current rates), select your loan term, and enter your annual property taxes and insurance. The calculator updates instantly as you change any value. Experiment with different scenarios—try a larger down payment or a shorter loan term to see how it affects your monthly payment and total interest paid.