Calculate your monthly mortgage payment
The Mortgage Calculator finds the monthly principal-and-interest payment by amortizing the loan over its term. Principal and interest form the core of the mortgage payment, the amount that repays the borrowed money plus the interest charged on it. The loan amount is the home price minus the down payment.
The Mortgage Calculator applies the amortization formula to that amount at the monthly interest rate over the number of monthly periods, producing a level payment that repays the loan in full by the end of the term. A $300,000 loan at 6.5% over 30 years produces a principal-and-interest payment of $1,896.20 a month. Early payments go mostly to interest, and later ones mostly to principal, though the payment itself stays constant.
The Mortgage Calculator shows this principal-and-interest figure as the foundation of the payment, then adds the other components that most lenders collect alongside it, so the headline number matches what actually leaves the account each month.
Add property tax and home insurance
The Mortgage Calculator adds property tax and home insurance to the payment, collected monthly through an escrow account. Property tax and homeowners insurance are recurring costs of owning the home that lenders usually bundle into the mortgage payment.
Rather than leaving owners to pay a large tax or insurance bill once a year, lenders divide the annual amounts by twelve and collect them monthly into an escrow account, paying the bills when they fall due.
The Mortgage Calculator does the same: an annual property tax of $3,600 adds $300 a month, and a $1,200 insurance premium adds $100, raising the example payment by $400. These amounts vary widely by location and home value, so the Mortgage Calculator takes them as inputs rather than assuming them.
The Mortgage Calculator separates the escrow portion from principal and interest in its breakdown, so the part that builds equity and the part that covers taxes and insurance are both visible.
Include PMI on a low down payment
The Mortgage Calculator adds private mortgage insurance when the down payment falls below 20% of the home price. Private mortgage insurance, or PMI, protects the lender when a borrower has less than 20% equity, and it raises the monthly payment.
A down payment under 20% means the lender carries more risk, so it charges PMI, typically between 0.5% and 1% of the loan amount per year. The Mortgage Calculator adds this to the payment when the down payment is low, and removes it once equity reaches 20%, since PMI is not permanent. On a $300,000 loan, PMI at 0.5% adds about $125 a month until the balance falls enough to cancel it. A larger down payment avoids PMI entirely.
The Mortgage Calculator flags whether PMI applies based on the down payment entered, so the effect of putting down more or less than 20% on the monthly cost is clear before committing.
Add HOA dues to the payment
The Mortgage Calculator includes homeowners-association dues where they apply, completing the monthly cost. HOA dues are regular fees charged by an association for shared amenities and maintenance in many communities and condominium buildings.
Unlike tax and insurance, HOA dues are not part of the loan or escrow, but they are a real monthly housing cost, so the Mortgage Calculator adds them to show the full amount an owner pays each month.
Dues range from modest sums for a suburban association to several hundred dollars for a condominium with extensive amenities. The Mortgage Calculator takes the dues as an input and folds them into the total.
The Mortgage Calculator brings principal, interest, tax, insurance, PMI, and HOA into one figure, so the total monthly cost of the home appears alongside the loan-only payment, and the gap between the two is plain.
Read the mortgage amortization schedule
The Mortgage Calculator produces a full amortization schedule showing how each payment splits between principal and interest over the life of the loan. An amortization schedule is the month-by-month record of a mortgage, tracking the shrinking balance and the shifting split of each payment.
Every payment is the same, but its composition changes: early on, most of it covers interest on the large balance, while near the end, almost all of it reduces principal. The Mortgage Calculator lists each period's interest, principal, and remaining balance, and shows the cumulative interest paid. Over 30 years at 6.5%, a $300,000 loan pays more than $380,000 in interest alone, a total the schedule makes concrete rather than abstract.
The Mortgage Calculator pairs the schedule with a principal-versus-interest view, so the slow early progress on the balance and the acceleration in later years are both visible.
Save with extra mortgage payments
The Mortgage Calculator shows how extra payments shorten the loan and cut total interest. Extra payments apply directly to the principal, reducing the balance faster than the schedule requires and saving interest on every remaining period. Because interest is charged on the outstanding balance, paying it down early removes interest from all the months that follow.
The Mortgage Calculator lets an extra monthly or one-time amount be added and shows the new payoff date and the interest saved. Adding $200 a month to the example payment shortens a 30-year loan by several years and saves tens of thousands in interest. The effect is largest early in the loan, when the balance and the interest on it are highest.
The Mortgage Calculator compares the original and accelerated schedules side by side, so the trade-off between a higher monthly payment and a shorter, cheaper loan is easy to weigh. For a dedicated early-payoff view, the Mortgage Payoff Calculator on QuickCalculators focuses on time and interest saved.
Read the disclaimer
QuickCalculators labels Mortgage Calculator results as estimates for information only. The Mortgage Calculator is not lending, tax, or financial advice. Escrow amounts, PMI rates, and cancellation rules vary by lender and property. Confirm figures with loan estimates and a licensed professional before acting.
Correct a common misconception: the quoted payment is only principal and interest
A common misconception is that the advertised mortgage payment already includes everything paid each month. Many quotes show principal and interest only. The Mortgage Calculator adds escrow items and HOA so the full housing cost is visible before budgeting around a P&I-only figure.
Frequently asked questions
How is a mortgage payment calculated?
A mortgage payment is calculated by amortizing the loan amount over its term at the monthly interest rate, then adding property tax, insurance, PMI, and HOA. The Mortgage Calculator computes the principal and interest with the amortization formula and folds in the other costs. A $300,000 loan at 6.5% over 30 years gives $1,896.20 in principal and interest.
What is included in a mortgage payment?
A full mortgage payment includes principal, interest, property tax, home insurance, and often PMI and HOA dues. The Mortgage Calculator combines all of these, since lenders usually collect tax and insurance in escrow alongside the loan repayment. Principal and interest repay the loan, while the rest covers ownership costs.
What is PMI and when does it apply?
PMI is private mortgage insurance that protects the lender when a borrower puts down less than 20%. The Mortgage Calculator adds PMI, typically 0.5% to 1% of the loan per year, when the down payment is low, and removes it once equity reaches 20%. A 20% or larger down payment avoids PMI entirely.
How does an extra payment help?
An extra payment reduces the principal directly, so it saves interest on every remaining month of the loan. The Mortgage Calculator shows that adding to the payment shortens the term and cuts total interest, with the biggest effect early on. Extra payments turn a lower balance into compounding interest savings over the loan's life.
What is an escrow account?
An escrow account is where a lender holds the monthly portions of property tax and insurance until the bills are due. The Mortgage Calculator reflects escrow by dividing the annual tax and insurance by twelve and adding them to the payment. Escrow spreads large annual bills into manageable monthly amounts.
How much does property tax add to a mortgage payment?
Property tax adds its annual amount divided by twelve to the monthly payment. The Mortgage Calculator takes the annual tax as an input, so a $3,600 yearly tax adds $300 a month. Property tax varies by location and home value, which is why the Mortgage Calculator treats it as an entry rather than an assumption.
Summarize the Mortgage Calculator
The Mortgage Calculator builds a complete monthly mortgage payment, starting with the principal and interest that amortize the loan and adding property tax, home insurance, PMI, and HOA dues to show the true cost of owning the home.
A $300,000 loan at 6.5% over 30 years carries a $1,896.20 principal-and-interest payment, to which escrowed tax and insurance add several hundred dollars, and PMI adds more when the down payment is below 20%.
The Mortgage Calculator produces a full amortization schedule and models extra payments so total monthly cost and long-term interest can be weighed together. These results are estimates only; actual taxes, insurance, PMI, and rates vary by lender and location.