Mortgage Calculator

About Mortgage Calculator

Our free mortgage calculator helps you estimate your monthly mortgage payment, including principal and interest, property taxes, homeowner's insurance, and private mortgage insurance (PMI). Whether you are a first-time homebuyer or looking to refinance, this tool gives you a complete picture of what your housing costs will look like each month.

The calculator uses the standard amortization formula -- M = P[r(1+r)^n] / [(1+r)^n - 1] -- where P is the loan principal, r is the monthly interest rate (annual rate divided by 12 divided by 100), and n is the total number of monthly payments. This formula produces a fixed monthly principal-and-interest payment that fully amortizes the loan over the specified term.

Beyond the basic payment calculation, this tool factors in property tax, homeowner's insurance, and PMI to show your true total monthly housing cost. PMI is automatically included when the loan-to-value ratio is 80% or higher and automatically removed in the amortization schedule once the LTV drops below 80%. All calculations run entirely in your browser -- no data is ever sent to any server.

Key Features

• Real-Time Calculation: Results update instantly as you type -- no need to click a calculate button
• Complete Payment Breakdown: See principal and interest, property tax, home insurance, and PMI as separate line items with a visual bar chart
• Flexible Down Payment: Enter your down payment as a dollar amount or a percentage of the home price, and switch between the two seamlessly
• Automatic PMI Handling: PMI is automatically applied when the down payment is less than 20% and removed from the amortization schedule when LTV drops below 80%
• Full Amortization Schedule: View a detailed month-by-month table showing payment, principal, interest, PMI, and remaining balance for every payment
• Loan Summary: See total interest paid, total cost of the loan, number of payments, and estimated payoff date at a glance
• Quick Term Selection: Choose from common loan terms (10, 15, 20, 30 years) with one click, or enter any custom term
• Formatted Currency Display: All dollar amounts are formatted with proper currency notation for easy reading
• Dark Mode Support: Full dark mode support for comfortable viewing in any lighting condition
• Privacy-First: All computations happen locally in your browser -- zero data is transmitted to any server

How to Use the Mortgage Calculator

1. Enter the home price: Type the purchase price of the home you are considering.
2. Set your down payment: Enter the down payment amount in dollars or switch to percentage mode. The calculator will show the equivalent percentage or dollar amount below the input.
3. Choose a loan term: Click one of the preset term buttons (10, 15, 20, or 30 years) or type a custom term in years.
4. Enter the interest rate: Input the annual interest rate as a percentage (for example, 6.5 for 6.5%).
5. Add property tax and insurance: Enter your estimated yearly property tax and homeowner's insurance costs.
6. Set the PMI rate: If your down payment is less than 20%, enter the annual PMI rate (typically 0.3% to 1.5% of the loan amount).
7. Review results: Your total monthly payment and full breakdown appear instantly on the right panel.
8. View amortization schedule: Click "Show Amortization Schedule" to see the complete month-by-month payment table.

Use Cases

• First-Time Home Buying: Estimate your monthly payment and determine how much home you can afford based on your budget before starting your house search.
• Comparing Loan Terms: Run calculations for 15-year vs. 30-year mortgages to see the tradeoff between monthly payment size and total interest paid over the life of the loan.
• Down Payment Planning: See how different down payment amounts affect your monthly payment and whether you can avoid PMI by putting down 20% or more.
• Refinancing Analysis: Compare your current mortgage payment with a new rate and term to determine if refinancing makes financial sense.
• Investment Property Analysis: Calculate the mortgage cost for a rental property and compare it against expected rental income to assess cash flow.
• Budget Planning: Factor in property taxes, insurance, and PMI to understand the true total monthly cost of homeownership beyond just principal and interest.
• Rate Shopping: Compare how different interest rates from various lenders affect your monthly payment and total interest to find the best deal.
• PMI Removal Planning: Use the amortization schedule to determine exactly when your LTV will drop below 80% so you can request PMI cancellation.

Frequently Asked Questions

Tips & Best Practices

• Aim for 20% down: Putting at least 20% down eliminates PMI entirely, which can save you hundreds of dollars per month depending on your loan size.
• Compare 15 vs. 30 year terms: A 15-year mortgage has higher monthly payments but saves tens of thousands of dollars in total interest compared to a 30-year term.
• Factor in all costs: Your true monthly housing cost includes principal, interest, property taxes, insurance, PMI, and potentially HOA fees -- not just the mortgage payment alone.
• Check the amortization table: In the early years of a mortgage, most of your payment goes toward interest. Use the schedule to see when the balance shifts toward principal repayment.
• Use the 28/36 rule: As a general guideline, your monthly mortgage payment should not exceed 28% of your gross monthly income, and total debt payments should not exceed 36%.
• Consider making extra payments: Even small additional principal payments can dramatically reduce total interest and shorten your loan term. Check the amortization schedule to quantify the savings.