A Mortgage Payment Calculator
A mortgage payment is more than principal and interest. Property tax, home insurance, HOA fees and private mortgage insurance all land on the same bill, and together they can add several hundred dollars a month.
Total monthly payment
$2,539.28
- Principal and interest
- $2,022.62
- Property tax
- $400.00
- Home insurance
- $116.67
- PMI
- $0.00
- Loan amount
- $320,000.00
Values update as you type. This calculator covers the single scenario its formula assumes — see Common Mistakes for what it leaves out.
The formula this calculator uses
P&I = Loan x monthly rate / (1 - (1 + monthly rate)^-n); Total = P&I + tax + insurance + PMI + HOA
- Loan
- Home price minus the down payment
- rate
- Annual interest rate divided by twelve
- n
- Total number of monthly payments
- tax
- Annual property tax divided by twelve
How to check the result by hand
- 1
Work out the loan amount
Subtract the down payment from the home price. A 400,000 home with 20% down leaves a 320,000 loan.
- 2
Convert the rate to monthly
Divide the annual rate by twelve. At 6.5% the monthly rate is 0.005417, or about 0.5417%.
- 3
Apply the payment formula
Divide loan times monthly rate by one minus (1 + monthly rate) to the power of minus the number of payments. That gives principal and interest.
- 4
Add the escrow items
Divide the annual property tax and insurance by twelve, add any HOA fee, and add PMI if the down payment is below twenty percent.
- 5
Check it against the 28% rule
The full payment, including escrow, should stay under twenty-eight percent of gross monthly income. If it does not, the home may be a stretch.
For worked examples, common mistakes and the limits of this formula, read the full How To Calculate A Mortgage Payment page.