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Mortgage Payment Calculator

Calculate monthly mortgage payments with taxes, insurance, and HOA. visualize amortization schedules and simulate extra payments to see interest savings.

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About

A mortgage is often the largest liability in a personal balance sheet. This tool computes the monthly PITI (Principal, Interest, Taxes, and Insurance) to determine true affordability. While the bank focuses on the Debt-to-Income (DTI) ratio to approve a loan, the borrower must calculate the cash flow impact of non-equity costs like property taxes and HOA fees.

Small variations in the interest rate r or the loan term n result in significant changes to the Total Interest Paid (TIP). This calculator also simulates the effect of prepayments. Making additional principal payments reduces the compounding period, potentially saving tens of thousands in interest and shortening the loan lifespan by years.

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Formulas

The core calculation utilizes the standard amortization formula to determine the fixed monthly principal and interest payment M.

M = P r1 + rn1 + rn − 1

Where P is the principal loan amount, r is the monthly interest rate (AnnualRate ÷ 12), and n is the total number of payments (Years × 12).

Reference Data

Loan AmountInterest RateMonthly P&ITotal Interest (30 Yr)Total CostInterest/Principal Ratio
$200,0003.0%$843$103,555$303,5550.52
$200,0004.0%$955$143,739$343,7390.72
$200,0005.0%$1,073$186,512$386,5120.93
$200,0006.0%$1,199$231,676$431,6761.16
$200,0007.0%$1,330$279,018$479,0181.40
$350,0004.0%$1,671$251,543$601,5430.72
$350,0005.0%$1,879$326,396$676,3960.93
$350,0006.0%$2,098$405,434$755,4341.16
$350,0007.0%$2,328$488,281$838,2811.40
$500,0005.0%$2,684$466,279$966,2790.93
$500,0006.0%$2,997$579,191$1,079,1911.16
$500,0007.0%$3,326$697,544$1,197,5441.40
$500,0008.0%$3,668$820,775$1,320,7751.64

Frequently Asked Questions

The interest rate is the cost of borrowing the principal amount. The APR (Annual Percentage Rate) includes the interest rate plus other costs such as broker fees, discount points, and closing costs, expressed as a yearly percentage. The APR is effectively the broader "price tag" of the mortgage.
Amortization schedules are front-loaded with interest. In the early years, a majority of the monthly payment goes to the bank as profit. By applying an extra payment specifically to the "Principal", the loan balance decreases immediately. This prevents interest from accruing on that amount for the remainder of the loan term, creating a compounding savings effect.
Lenders typically require Private Mortgage Insurance (PMI) if the Loan-to-Value (LTV) ratio exceeds 80%. This protects the lender against default. PMI is usually a monthly premium added to the mortgage payment until the homeowner builds 20% equity in the property.
Not always, but commonly. Lenders often set up an escrow account. A portion of the monthly payment goes into this account, and the lender pays the tax authority and insurance company on behalf of the homeowner when bills are due. If no escrow exists, the homeowner pays these bills directly.
The monthly payment remains constant in a fixed-rate mortgage. As the loan balance decreases, the interest charged on that balance (Rate × Balance) decreases. Since the total payment is fixed, the remainder available to pay down the principal increases each month.