Mortgage Payment Calculator

Mortgage Payment Calculator: What We Include

The calculator above estimates your total monthly mortgage payment (your real housing payment), not just principal and interest. That’s important because escrow, insurance, and HOA dues can change affordability more than small rate adjustments.

Your estimate can include:

• Principal and interest (based on loan amount, interest rate, and term)
• Estimated property taxes (usually paid through escrow)
• Estimated homeowners insurance (often escrowed)
• HOA dues (if applicable)
• Mortgage insurance (PMI, FHA MIP, or program fees when required)

What the calculator shows

• Your estimated monthly payment (all-in)
• A breakdown of each payment component (P&I, taxes, insurance, etc.)
• An amortization schedule (balance over time)
• Total interest over the full loan term
• Your projected payoff date

These results are planning estimates. Actual payments vary by lender, property location, and loan program details.

What Affects Your Monthly Mortgage Payment?

Most monthly mortgage payments are built from PITI: principal, interest, taxes, and insurance. Depending on your down payment, loan type, and property, you may also pay PMI/MIP and HOA dues.

Principal and Interest (P&I)

Principal is the amount you borrow (purchase price minus down payment). Interest is the cost of borrowing. Together, P&I is the part of your payment calculated by the amortization formula.

Early in the loan, a larger share of each payment goes to interest. Over time, more of the payment goes toward principal. That’s why amortization schedules are so helpful when comparing loan terms.

Property Taxes (Escrow)

Property taxes vary widely by state and county. Many lenders collect taxes monthly via escrow and pay the bill when due. If your assessment or tax rate increases, your escrow portion can rise - and so can your total monthly payment.

Homeowners Insurance

Homeowners insurance protects the property, and lenders usually require it. Premiums depend on the home, location, coverage, and deductible. Like taxes, insurance is often paid through escrow, so premium changes can change your monthly payment.

Mortgage Insurance and Program Fees (PMI, FHA MIP, VA/USDA)

• Conventional PMI: Common when down payment is under 20%. Removal rules depend on LTV and lender policy.
• FHA MIP: Often includes an upfront premium (sometimes financed) plus a monthly premium.
• VA funding fee: Typically a one-time fee that may be financed into the loan (varies by borrower profile).
• USDA guarantee fee: Often has upfront and annual components (paid monthly).

HOA Dues

HOA dues are not part of the loan, but they are part of your monthly housing cost - and they affect affordability and DTI. Condos and planned communities often have HOA fees, and they can increase over time.

Mortgage Payment Calculator vs Mortgage Affordability Calculator

These tools answer different questions:

• A mortgage payment calculator estimates the monthly payment for a specific home price and loan scenario.
• A mortgage affordability calculator estimates how much home you can afford based on income, debts, and limits.

If you already have a target purchase price, you’re in the right place. If you’re still setting a budget, start with affordability planning first. Our Affordability & Planning guide explains how to estimate a safe price range using income, debts, and DTI before modeling specific loan scenarios.

How Monthly Mortgage Payments Are Calculated (P&I Formula)

For a fixed-rate loan, the principal-and-interest portion uses a standard amortization formula that keeps the monthly P&I payment consistent across the term.

Monthly P&I = P × ( r × (1 + r)^n ) / ( (1 + r)^n − 1 )

P = loan amount
r = monthly interest rate (annual rate ÷ 12)
n = total number of payments

Your total monthly payment is then calculated by adding taxes, insurance, HOA dues, and any mortgage insurance or program fees to your P&I amount.

Want to see this math month-by-month (and how interest declines over time)? See our Amortization & Payoff guide.

Common Mistakes That Cause Mortgage Payment Surprises

Most “payment shocks” happen because people compare loans using principal and interest only, then discover the full monthly cost after escrow, insurance, and fees are added.

• Comparing homes using principal and interest only (ignoring escrow)
• Underestimating property taxes or using outdated tax estimates
• Assuming PMI disappears immediately (removal rules vary)
• Forgetting HOA dues (and future increases)
• Choosing a term based only on the lowest payment (not total interest)

If you’re comparing a 30-year vs 15-year payment, our Loan Term Calculators guide helps you compare terms side-by-side using real monthly payment and total interest differences.

How to Lower Your Monthly Mortgage Payment

Lowering your payment usually comes down to reducing the loan amount, improving the interest rate, or removing fees like PMI - while still staying within a comfortable budget.

• Increase your down payment (reduces loan amount and may reduce/remove PMI)
• Improve credit and lower your debt-to-income ratio
• Shop multiple lenders and compare offers (rate + fees matter)
• Consider a longer term for a lower payment (but weigh total interest)
• Make extra principal payments when possible to reduce interest over time

Beyond the Monthly Payment: Amortization & Early Payoff

Amortization schedules

An amortization schedule shows how each payment is split between interest and principal. Reviewing it helps you understand how quickly your balance declines, why early payments are interest-heavy, and how extra payments change the timeline.

Extra payments and early payoff

Even small additional principal payments can reduce total interest and shorten the loan term. The easiest way to compare payoff strategies is to review an amortization schedule and test different extra payment amounts.

Mortgage Payment Calculator FAQs

For more FAQs, visit our full list of mortgage-related questions .