Loan Parameters
- 1Enter the total Home Purchase Price and Down Payment amount (loan principal = price − down payment).
- 2Set the Annual Interest Rate (%) and select your desired Loan Term in years (e.g., 15 or 30 years).
- 3Optionally enter estimated annual Property Tax and Homeowners Insurance to include them in monthly costs.
- 4View your estimated total monthly payment, principal & interest breakdown, and total interest paid over time.
A home mortgage payment consists of monthly principal loan repayment and interest charges. When property taxes and homeowners insurance are included, the total monthly housing cost is commonly referred to as PITI (Principal, Interest, Taxes, and Insurance).
Fixed monthly payment formula where P is principal (Home Price − Down Payment), r is monthly interest rate (annual / 12), and n is total months (years × 12).
Monthly P&I = P · [ r(1 + r)ⁿ ] / [ (1 + r)ⁿ - 1 ]Sum of monthly principal & interest plus monthly property tax and homeowners insurance estimates.
Total Monthly = Monthly P&I + (Annual Property Tax / 12) + (Annual Home Insurance / 12)Total lifetime interest charges calculated over the full loan term.
Total Interest = (Monthly P&I × Total Months) - PrincipalPrincipal = $280,000 | 6.5% Interest | 30-Year Fixed Term (360 months)Monthly Tax = $350/mo | Monthly Insurance = $125/mor = 0.065/12; n = 60; Payment = P·r·(1+r)^n / ((1+r)^n − 1) = 25000 · … ≈ 489.15- Down Payment Impact: A larger down payment reduces the principal loan amount, lowering both your monthly payment and total lifetime interest paid.
- 15-Year vs 30-Year Term: A 15-year mortgage requires higher monthly payments but saves tens or hundreds of thousands of dollars in total interest.
- Excluded Costs: This calculator estimates principal, interest, taxes, and insurance, but does not model HOA fees, PMI (private mortgage insurance for <20% down), or maintenance.
Does this mortgage calculator include property taxes and insurance?
Yes. You can optionally enter your annual property tax and homeowners insurance amounts to compute your full estimated monthly PITI payment.
What is the difference between a 15-year and 30-year fixed mortgage?
A 30-year loan offers lower monthly payments by spreading debt over 360 months, but results in much higher total interest. A 15-year loan requires higher monthly payments but drastically reduces lifetime interest.
How does down payment affect my loan balance?
Down payment directly reduces the borrowed principal. For example, a $70,000 down payment on a $350,000 home reduces your borrowed loan balance to $280,000.
Is Private Mortgage Insurance (PMI) included?
No. PMI is typically required by lenders when down payment is less than 20%, but is not included in this basic calculation.
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