CalcVerse

Mortgage Calculator

A mortgage payment has two parts: principal and interest (P&I), which repays the loan, plus property tax and homeowners insurance if they are collected with the payment. This calculator shows both.

  • Last updated
  • Formula tested against reference values

Your numbers

Result

Total monthly payment
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Calculating…

Principal and interest
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Loan amount
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Down payment
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Total interest over the term
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Total of all payments
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How to use this calculator

  1. Enter or choose home price.
  2. Enter or choose down payment.
  3. Enter or choose interest rate (per year).
  4. Enter or choose loan term.
  5. Enter or choose property tax (per year).
  6. The total monthly payment updates as you type. Use Copy result or Share to keep it.

Formula

M=L×r×(1+r)n(1+r)n−1+T+I12

Monthly payment = L × r × (1 + r)^n ÷ ((1 + r)^n − 1) + (T + I) ÷ 12

L
loan amount = home price − down payment
r
monthly rate = annual rate ÷ 12 ÷ 100
n
term in months
T
yearly property tax
I
yearly insurance

Worked example

  1. Loan L = $375,000 − $75,000 = $300,000 (a 20% down payment).
  2. r = 6 ÷ 12 ÷ 100 = 0.005 and n = 30 × 12 = 360.
  3. Principal and interest = 300,000 × 0.005 × 1.005^360 ÷ (1.005^360 − 1) ≈ $1,798.65.
  4. Tax and insurance = (3,600 + 1,200) ÷ 12 = $400.

The estimated payment is $2,198.65 a month: $1,798.65 principal and interest plus $400 escrow.

What the result means

The principal-and-interest part stays the same for a fixed-rate loan, while tax and insurance can rise each year. The balance chart shows how slowly the loan falls at first and how quickly near the end.

Assumptions and limits

  • Fixed interest rate for the full term.
  • Tax and insurance are spread evenly over 12 monthly payments.
  • No mortgage insurance, HOA fees or closing costs.
  • Lenders may require private mortgage insurance (PMI) when the down payment is below 20%; it is not included.
  • Adjustable-rate mortgages change payment after the initial period.

Questions

How much down payment do I need?

It depends on the lender and loan type. A larger down payment lowers the loan amount, the monthly payment and the total interest. In the US, putting down less than 20% on a conventional loan usually means paying PMI.

15-year or 30-year mortgage?

A 15-year term has a higher monthly payment but much lower total interest. Switch the term in the calculator and compare “total interest over the term”.

Sources

Please note: This calculator gives estimates for planning. It is not financial advice, and lenders’ actual terms, fees and rounding may differ.