Mortgage Calculator

How the Calculator Works

Our Mortgage Calculator computes your monthly payment based on the loan amount, interest rate, and term. It applies the standard amortization formula to break down each payment into principal and interest. You can also factor in property taxes, homeowner's insurance, and private mortgage insurance (PMI) for a more realistic estimate.

The tool uses:
M = P [ i(1 + i)^n ] / [ (1 + i)^n – 1 ]
Where:

• M = monthly payment
• P = principal (loan amount)
• i = monthly interest rate (annual ÷ 12)
• n = number of payments (years × 12)

Formula & Explanation

Amortization spreads the cost of a loan over its life. Early payments go mostly toward interest; later payments apply more toward principal. Our calculator shows this schedule in detail so you can visualize how your balance decreases over time.

Example Calculation

If you borrow $300,000 at 6% for 30 years, your monthly principal + interest payment equals roughly $1,799. Add property tax ($250/mo) and insurance ($100/mo), and your total monthly cost becomes $2,149.

How to Use This Tool

1. Enter your loan amount, interest rate, and term.
2. Optionally add taxes, insurance, or PMI.
3. Click "Calculate" to see your monthly payment and amortization chart.
4. Adjust the inputs to compare scenarios—shorter terms, larger down payments, or different rates.

Features & Benefits

• Accurate, instant mortgage estimates
• Full amortization breakdown by month
• Visual graphs of principal vs. interest
• Supports property tax & PMI inclusion
• Ideal for first-time buyers or refinancing

Related Tools

Try these other finance tools:

• Refinance Calculator
• Loan Payoff Calculator
• Amortization Schedule Calculator