A mortgage calculator is a financial tool that estimates your monthly home loan payment based on principal, interest rate, and loan term.
How to Calculate Mortgage Payment
- Enter your home price or loan amount
- Input your down payment (if buying)
- Set your annual interest rate and loan term in years
- Add property tax, insurance, and PMI if applicable
- Click calculate to see monthly principal, interest, and total housing cost
The Mortgage Payment Formula
M = P[r(1+r)^n]/[(1+r)^n-1] where P=principal, r=monthly rate, n=number of payments; add taxes and insurance for PITI.
Where: symbols follow the inputs and conventions used in this calculator (principal, rates, terms, or units as labeled).
Real-World Example
A $300,000 loan at 6.5% for 30 years ≈ $1,896/month principal and interest before taxes and insurance.
Frequently Asked Questions
- How to calculate Mortgage Payment?
- Enter your home price or loan amount Input your down payment (if buying) Set your annual interest rate and loan term in years Add property tax, insurance, and PMI if applicable Click calculate to see monthly principal, interest, and total housing cost
- What is the formula for Mortgage Payment?
- M = P[r(1+r)^n]/[(1+r)^n-1] where P=principal, r=monthly rate, n=number of payments; add taxes and insurance for PITI.
- Can you give a real-world Mortgage Payment example?
- A $300,000 loan at 6.5% for 30 years ≈ $1,896/month principal and interest before taxes and insurance.
- What is the difference between PITI and principal and interest?
- Principal and interest cover the loan repayment. PITI adds property taxes and homeowners insurance (and often PMI) so the number matches a realistic monthly housing bill.