Mortgage Payment Calculator (US)

The principal and interest part uses M = P × r × (1+r)ⁿ / ((1+r)ⁿ − 1), where P is the loan, r is the APR divided by 12 and n is the number of months. For a $320,000 loan at 6.5 % over 30 years that is about $2,023 a month. Property tax, insurance, PMI and HOA dues are then added on top.

Private mortgage insurance protects the lender, and is usually required on a conventional loan when your down payment is under 20 %. You can generally ask to cancel it once your balance is scheduled to reach 80 % of the original home value, and lenders must end it automatically at 78 % if you are current on payments. This calculator charges PMI until the payment that brings the balance to 78 % of the original price. FHA and some other loans have their own insurance rules, so check yours.

A common rule of thumb keeps total housing costs to about 28 % of gross monthly income, but lenders also look at your other debts, credit score and savings. Use our Home Affordability Calculator to work backwards from your income, then come back here to see the full payment for a specific price.

A 15-year loan has a higher payment but much less interest. At 6.5 % on $320,000 the payment is about $2,788 for 15 years versus $2,023 for 30, and total interest is about $181,800 versus about $408,100. Shorter loans often carry lower rates too. The right choice depends on what payment you can sustain comfortably. Pick 15 or 30 above and compare.

Enter the yearly property tax as a percentage of the home's value. It is divided by 12 and added to the payment. Rates differ widely by state and county, and your tax bill can change when the home is reassessed, so check your local assessor. This calculator keeps the amount flat.

An escrow account is held by your mortgage servicer. Part of each monthly payment goes in, and the servicer pays your property tax and homeowners insurance bills from it when they are due. The tax and insurance lines in this calculator are the amounts that would normally flow through escrow.

It lowers the loan, so you pay less interest, and at 20 % or more you avoid PMI. Try the $ amount or % of price toggle and watch the Total Interest, PMI and Monthly Payment figures change as you move the slider.

Interest is charged on the balance still owed each month, and the balance is highest at the start. On the default example, the first payment is roughly $1,733 of interest and only about $289 of principal. The schedule above shows the interest share shrinking year after year.

No. It estimates the ongoing monthly payment only. Closing costs, discount points and other fees are paid separately, so compare lenders using the Loan Estimate and our APR Calculator.

It should be close for a fixed-rate loan. Differences come from the actual tax and insurance amounts, PMI pricing, rounding, fees and the day your first payment is due. Adjustable-rate loans, part-prepayments and extra payments are not modelled here; for extra payments, a lump sum, biweekly payments or paying off early, use the Mortgage Prepayment & Early Payoff Calculator (US).