Mortgage Payment & Amortization Calculator

How Do I Calculate My Monthly Mortgage Payment?

A monthly mortgage payment calculator combines loan amount, interest rate, and loan term to estimate principal and interest, then adds taxes, insurance, and PMI (when applicable) to show a more realistic payment.

What's Included in Your Monthly Payment?

Your monthly mortgage payment typically includes four components, often called PITI:

• Principal - The portion that reduces your loan balance
• Interest - The cost of borrowing money
• Taxes - Property taxes, usually escrowed by your lender
• Insurance - Homeowners insurance to protect the property

Understanding PMI

If your down payment is less than 20%, you'll likely pay Private Mortgage Insurance (PMI). This protects the lender if you default. PMI typically costs 0.5% to 1% of the loan amount annually and can be removed once you reach 20% equity.

If you are comparing PMI costs, see our PMI definition guide for removal rules and a plain-English explanation of private mortgage insurance.

Use the LTV Calculator (loan-to-value calculator) to estimate whether your down payment puts you in a likely PMI range before you finalize an offer.

Property Taxes and Insurance Matter More Than Many Buyers Expect

Some people search for a property tax calculator when what they really need is a full payment estimate. Taxes and homeowners insurance can materially change affordability, which is why this calculator includes them in the monthly result instead of showing principal and interest alone.

Fixed vs. Adjustable Rates

This calculator assumes a fixed-rate mortgage where your rate stays the same for the entire loan term. Adjustable-rate mortgages (ARMs) may start with lower rates but can change over time.

How Amortization Actually Works

Early payments are mostly interest. Over time, more of each payment goes to principal. That’s why a lower rate or extra principal payments can materially shorten the payoff timeline.

If you are comparing quotes, check mortgage rates today and rerun the amortization schedule with both a baseline and a stress-case rate.

What Moves Mortgage Rates

• Market expectations: inflation trends and economic data move rates quickly.
• Your profile: credit score, down payment, and debt‑to‑income ratio.
• Loan type: conventional vs FHA/VA/USDA pricing differs.

Escrow Accounts

Many lenders collect taxes and insurance monthly and pay them on your behalf. If your escrow changes (tax reassessment, insurance increases), your payment can change even on a fixed‑rate loan.

Mortgage Payoff Calculator Use Case (Using Extra Payments)

Extra principal payments reduce interest over time. Even a small recurring extra payment can shave years off a 30‑year loan. Confirm that your lender has no prepayment penalties.

If you searched for a mortgage payoff calculator, this page gives you the key inputs to model that decision: loan amount, rate, term, and extra principal. Use the amortization output to compare a standard payment versus an accelerated payoff plan.

If a seller is offering a temporary buydown instead of a permanent rate concession, compare the payment path in the 2-1 Buydown Calculator before deciding whether to put credits toward a lower note rate, closing costs, or short-term payment relief.