← Back to tools
Financial
Mortgage Calculator
Estimate your monthly payment, loan interest, and the effect of taxes and insurance.
How the Mortgage Calculator Works
This mortgage calculator estimates your total monthly home payment, including principal and interest, property taxes, and home insurance. By factoring in your down payment, interest rate, and term length, it helps you plan your home purchasing budget.
Formula Used
M = P × [r(1 + r)ⁿ] ÷ [(1 + r)ⁿ − 1] + Monthly Tax + Monthly Insurance
- P (Principal)
- — the loan amount (Home Price − Down Payment)
- r
- — monthly interest rate = annual interest rate ÷ 12 ÷ 100
- n
- — total number of monthly payments = term in years × 12
- Monthly Tax / Insurance
- — annual property tax and insurance divided by 12, added to the monthly payment
Example Calculation
For a $300,000 home with a $60,000 down payment (P = $240,000), a 6% interest rate over 30 years (360 months), with annual taxes of $3,000 and insurance of $1,200: Monthly mortgage principal and interest = $1,438.92. Plus monthly tax ($250) and insurance ($100) = $1,788.92 total monthly payment.