Methodology
Principal and interest are calculated with the standard fixed-rate amortization formula. Optional annual costs like property tax, homeowners insurance, and PMI are converted to monthly values and added to monthly housing cost.
Mortgage Calculator
Calculate your monthly mortgage payment and see the total interest paid over the life of the loan.
Loan Details
Optional Costs
Results
Monthly P&I
$1,516.96
Monthly Total
$1,916.96
Loan Amount
$240,000.00
Total Interest
$306,106.77
First Month
Interest: $1,300.00
Principal: $216.96
Mortgage Tip
Putting down 20% or more helps you avoid PMI (Private Mortgage Insurance)
Quick Facts
Average mortgages run 30 years at 6-8% APR depending on market conditions
Note
This calculator shows P&I only. Add property taxes, insurance, and HOA fees
How this mortgage calculator works
This tool uses a standard amortization approach to estimate monthly principal and interest. It then adds optional monthly costs for property tax, home insurance, and PMI to show your total estimated monthly payment.
- Loan amount = home price minus down payment
- Monthly P&I is based on APR and loan term
- Monthly total includes optional tax, insurance, and PMI
Last updated: February 2026
Mortgage calculator FAQ
How is monthly mortgage payment calculated?
Monthly principal and interest are calculated using the loan amount, APR, and term. Optional costs are added after that.
Does this include taxes and insurance?
Yes. Enter annual property tax and insurance to include them as monthly amounts in the total estimate.
Can I use percent or dollar down payment?
Yes. Use the toggle beside the down-payment input to switch between $ and % modes.
Related Calculators
Explore more calculators and converters for related scenarios.
buildRefinance Calculator
trending_downDown Payment Calculator
directions_carAuto Loan Calculator
credit_cardCredit Card Payoff
Related Trackers
Keep your progress organized with matching trackers on SimpleTrackers.io.
editor_choice
Assumptions
- Interest rate remains fixed for the full term.
- Payments are made monthly and on time.
- Taxes, insurance, and PMI are treated as stable annual estimates.
Worked example
Example: $400,000 home price, 20% down, 30-year term, 6.5% APR. Loan amount becomes $320,000. The calculator estimates principal and interest first, then adds monthly tax/insurance/PMI if entered to show full monthly housing cost.
Edge cases and limitations
- Adjustable-rate mortgages are not modeled as future rate resets.
- Local taxes, HOA dues, and insurance changes can materially alter results.
- Short ownership periods can make total interest less representative of actual cost.
When this calculator is not appropriate
Use a lender-prepared loan estimate for underwriting decisions, closing disclosures, and scenario-specific fees. This tool is best for planning and comparison, not final approval terms.