FinanceCalc

Mortgage Calculator

Calculate your monthly mortgage payment, total interest, and see a full amortization schedule. Includes property tax, insurance, and PMI estimates.

Estimated Monthly Payment
$2,564.28
Loan Amount
$320,000.00
Monthly P&I
$2,022.62
Total Interest
$408,142.36
Total Cost
$728,142.36

Monthly Payment Breakdown

Principal & Interest
$2,022.62/mo
78.9%
Property Tax
$416.67/mo
16.2%
Home Insurance
$125.00/mo
4.9%

How Mortgage Payments Work

A mortgage payment typically consists of four components, often called PITI:

  • Principal: The amount borrowed that reduces your loan balance over time.
  • Interest: The cost of borrowing money, expressed as an annual rate.
  • Taxes: Property taxes assessed by your local government, collected monthly.
  • Insurance: Homeowner's insurance to protect against damage or loss.

The Mortgage Payment Formula

The standard mortgage payment formula is: M = P × [r(1+r)^n] / [(1+r)^n - 1], where P is the loan amount, r is the monthly interest rate, and n is the number of payments.

What is PMI?

Private Mortgage Insurance (PMI) is typically required when your down payment is less than 20% of the home's value. PMI protects the lender if you default on the loan. Once you reach 20% equity, you can usually request to have PMI removed.

Disclaimer

This calculator is for informational purposes only and should not be considered financial advice. Consult with a qualified financial professional before making any financial decisions.

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