Mortgage Calculator - Calculate Monthly Home Loan Payment
Free online mortgage calculator. Calculate your monthly home loan payment, including principal, interest, property taxes, and insurance with an interactive amortization schedule.
Inputs
🔒 Local Processing| Month | Payment | Principal | Interest | Balance |
|---|---|---|---|---|
| 1 | $1516.96 | $216.96 | $1300.00 | $239783.04 |
| 2 | $1516.96 | $218.14 | $1298.82 | $239564.90 |
| 3 | $1516.96 | $219.32 | $1297.64 | $239345.58 |
| 4 | $1516.96 | $220.51 | $1296.46 | $239125.07 |
| 5 | $1516.96 | $221.70 | $1295.26 | $238903.37 |
| 6 | $1516.96 | $222.90 | $1294.06 | $238680.46 |
| 7 | $1516.96 | $224.11 | $1292.85 | $238456.35 |
| 8 | $1516.96 | $225.32 | $1291.64 | $238231.03 |
| 9 | $1516.96 | $226.55 | $1290.42 | $238004.48 |
| 10 | $1516.96 | $227.77 | $1289.19 | $237776.71 |
| 11 | $1516.96 | $229.01 | $1287.96 | $237547.71 |
| 12 | $1516.96 | $230.25 | $1286.72 | $237317.46 |
How to Use This Calculator
- Enter your total home purchase price or loan principal after down payment.
- Input the annual fixed interest rate offered by your mortgage lender.
- Select your loan term in years (e.g. 15, 20, or 30 years).
- Optionally enter annual property taxes, homeowners insurance, and monthly HOA fees to calculate complete escrow.
- Review your monthly principal and interest payment, amortization breakdown, and total financing charges.
Formula & Mathematical Method
Where M is your monthly mortgage payment, P is the principal loan amount, r is your monthly interest rate (annual rate divided by 1200), and n is the total number of monthly payments.
M = P [ r(1 + r)^n ] / [ (1 + r)^n - 1 ]Explanation of Variables
| Symbol | Variable Name | Description & Role in Calculation |
|---|---|---|
| P | Loan Principal | Total borrowed sum after subtracting the cash down payment. |
| r | Monthly Interest Rate | Annual interest rate divided by 12 monthly billing cycles. |
| n | Total Amortization Months | Loan tenure in years multiplied by 12 months. |
| T | Property Tax Escrow | Monthly allocation for municipal and school property taxes. |
| I | Hazard Insurance | Monthly premium for private homeowners insurance protection. |
Worked Calculation Examples
30-Year Fixed Loan at 6.5%
Scenario: Home price of $300,000 with a 20% down payment ($60,000) and $350 in monthly taxes/insurance.
15-Year Fixed Loan at 5.5%
Scenario: Home price of $400,000 with $80,000 down on a 15-year term at 5.5%.
Interpretation of Results
Your monthly mortgage payment consists of principal reduction and accrued interest (P&I), plus optional escrow for property taxes and homeowners insurance. In early years of amortization, the majority of each payment covers interest; over time, the proportion applied toward reducing your loan balance steadily increases.
Monthly Principal & Interest
The fixed baseline monthly cost to service the borrowed loan amount over the agreed loan term.
Key Context: Ensure this baseline comfortably stays under 28% of your gross monthly household income (standard front-end debt ratio).
Total Interest Paid
The cumulative finance charge assessed by the lender over the full duration of the loan.
Key Context: Making additional principal payments or choosing a shorter term (e.g. 15 years) significantly reduces this total.
Practical Use Cases
Home Purchase Affordability Planning
Determine your realistic monthly housing payment before shopping for a home or securing mortgage pre-approval.
15-Year vs 30-Year Loan Comparison
Compare higher monthly obligations of a 15-year mortgage against the substantial long-term interest savings over a 30-year loan.
Down Payment Impact Analysis
Evaluate how putting down 20% eliminates costly Private Mortgage Insurance (PMI) and lowers monthly financing charges.
Limitations & Key Assumptions
- Assumes a fixed interest rate throughout the full term; does not model Adjustable-Rate Mortgage (ARM) reset adjustments.
- Excludes local property tax reassessments, homeowners association (HOA) special assessments, and future insurance premium increases.
- Does not calculate origination fees, closing points, title transfer taxes, or discount points paid at closing.