Estimate your monthly mortgage payment including taxes, insurance, HOA fees, and PMI. Built for home buyers, real estate agents, and mortgage learners who need accurate, instant estimates without the guesswork.
Enter your mortgage details and click Calculate to see your estimated monthly payment.
M = P × [ r(1 + r)n / ((1 + r)n − 1) ]
A mortgage calculator is a financial tool that helps home buyers, homeowners, and real estate professionals estimate monthly mortgage payments based on the home price, down payment, loan term, interest rate, property taxes, homeowners insurance, HOA fees, and private mortgage insurance (PMI). It provides a clear estimate of the total monthly housing cost before contacting a lender.
A fixed-rate mortgage uses a standard amortization formula to calculate equal monthly payments that repay the loan principal plus interest over the loan term. The monthly payment includes principal repayment and interest charges. Property taxes, homeowners insurance, HOA fees, and PMI are added separately to estimate the total monthly housing payment.
The principal is the loan amount you borrow to purchase the home. Interest is the cost the lender charges for borrowing the money, expressed as an annual percentage rate. In a fixed-rate mortgage, the monthly principal and interest payment stays the same for the entire loan term. Over time, a larger portion of each payment goes toward principal and less toward interest.
Property taxes are assessed by local governments and are typically paid through an escrow account as part of your monthly mortgage payment. Homeowners insurance protects your property and is often required by lenders. HOA fees apply to properties in managed communities. PMI (Private Mortgage Insurance) is typically required when the down payment is less than 20 percent of the home price.
The down payment is the cash you pay upfront toward the home purchase. The loan-to-value (LTV) ratio is the loan amount divided by the home price, expressed as a percentage. A lower LTV ratio (higher down payment) may help you secure a better interest rate and avoid PMI. A 20 percent down payment results in an 80 percent LTV ratio, which is a common benchmark.
Lenders typically evaluate affordability using two ratios: the housing payment ratio (monthly housing payment divided by gross monthly income) and the debt-to-income ratio (total monthly debts including housing divided by gross monthly income). A housing ratio below 28 percent and a DTI ratio below 36 percent are common benchmarks, though lender requirements vary.
This calculator provides estimates only. It does not provide financial, mortgage, tax, legal, or investment advice. Actual mortgage payments depend on lender terms, credit score, loan type, interest rate, taxes, insurance, PMI rules, escrow requirements, HOA fees, closing costs, local fees, and rate changes. Users should verify payment details with a qualified lender, mortgage professional, tax advisor, or financial professional before making any decisions. This tool is for educational and estimation purposes only.
This calculator uses the standard fixed-rate mortgage payment formula and provides mathematically accurate estimates based on the inputs you provide. However, actual mortgage payments may differ due to lender-specific fees, escrow calculations, fluctuating tax and insurance rates, PMI rules, and other factors. Always verify with a qualified lender.
Private Mortgage Insurance (PMI) is typically required by lenders when the down payment is less than 20 percent of the home purchase price. PMI protects the lender if the borrower defaults. The cost varies based on loan type, credit score, and down payment amount. PMI can often be removed once the loan-to-value ratio reaches 80 percent or lower.
A larger down payment reduces the loan amount, which lowers your monthly principal and interest payment. It also reduces the loan-to-value ratio, which may help you qualify for a lower interest rate and avoid PMI. A 20 percent down payment is a common target, but many loan programs accept lower down payments.
Most lenders prefer a debt-to-income (DTI) ratio of 36 percent or lower, with the housing payment portion typically below 28 percent of gross monthly income. However, some loan programs allow higher DTI ratios. A lower DTI ratio generally improves your chances of loan approval and may help you secure a better interest rate.
This calculator is designed for fixed-rate mortgages. Adjustable-rate mortgages (ARMs) have interest rates that change over time, which makes payment estimation more complex. You can use this tool to estimate initial ARM payments by entering the introductory rate, but keep in mind that payments may change when the rate adjusts.