Mortgage Calculator
Calculate your monthly mortgage payments and total loan cost.
Understanding Your Mortgage
A mortgage is a loan used to purchase real estate, where the property serves as collateral. Your monthly payment consists of principal, interest, taxes, and insurance (PITI).
How to Use This Calculator
- Home Value: The purchase price or current market value of the property
- Down Payment: Your initial payment (typically 3-20% of home value)
- Loan Term: Duration of the loan (usually 15 or 30 years)
- Interest Rate: Annual percentage rate (APR) for the loan
Formulas Used
M = P [ i(1 + i)^n ] / [ (1 + i)^n – 1]Where:
- M = Monthly payment
- P = Loan principal (home value - down payment)
- i = Monthly interest rate (annual rate ÷ 12)
- n = Number of payments (loan term in years × 12)
Tips for Home Buyers
- ✅ Save for a larger down payment to reduce monthly payments
- ✅ Improve your credit score to qualify for better rates
- ✅ Consider different loan terms (15-year vs 30-year)
- ✅ Factor in all homeownership costs (maintenance, taxes, insurance)
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