Mortgage Calculator
Calculate mortgage payments, including principal, interest, taxes, insurance, and more.
Mortgage Details
Enter your mortgage information below to calculate payments and generate an amortization schedule.
Understanding Mortgage Calculations
This mortgage calculator uses standard financial formulas to calculate your monthly payment, total interest, and generate an amortization schedule. Here's how the calculations work:
Monthly Principal & Interest Formula:
Payment = P × [r(1 + r)^n] ÷ [(1 + r)^n - 1]
Where:
- P = Principal (loan amount)
- r = Monthly interest rate (annual rate divided by 12)
- n = Total number of payments (loan term in months)
Key Mortgage Components:
- Principal & Interest (P&I): The base payment that goes toward paying off the loan amount and the interest charged by the lender.
- Property Taxes: Annual taxes assessed by local government, typically paid monthly into an escrow account.
- Homeowner's Insurance: Insurance that protects your home against damage, also typically paid monthly into escrow.
- Private Mortgage Insurance (PMI): Required when the down payment is less than 20% of the purchase price. It protects the lender if you default on the loan.
- HOA Fees: Monthly fees paid to a homeowners association for maintenance of common areas and amenities.
Extra Payments:
Making extra payments towards your mortgage principal can significantly reduce the total interest paid and shorten the loan term. Even small additional monthly payments can make a big difference over time.
Note: This calculator provides estimates based on the information you provide. Actual mortgage terms and payments may vary based on lender-specific factors, fees, and other considerations. Always consult with a financial advisor or mortgage lender for personalized advice.