Mortgage Payment Calculator

Work out your true monthly mortgage payment — not just principal and interest, but the taxes, insurance and PMI that ride along with it. This is the number your budget actually feels.

Quick answer — Principal & interest on a loan = loan amount × monthly rate factor. On $340,000 at 6.5% for 30 years that is $2,149/mo — then add taxes, insurance and any PMI for the real payment.

1 · Afford 2 · Payment 3 · Schedule 4 · Pay off early 5 · Closing costs 6 · PMI 7 · Refinance 8 · Rates guide

How to use this mortgage payment calculator

Enter the home price and down payment. The loan amount is the difference between the two.
Add your interest rate and term. Get a realistic rate from lender quotes or our mortgage rates guide.
Include taxes and insurance. Most lenders collect these monthly into an escrow account, so they are part of your real monthly bill.
Read the full breakdown. The calculator updates instantly — try a bigger down payment or a 15-year term and watch the payment and total interest change.

What is actually in a monthly mortgage payment?

Lenders use the acronym PITI: Principal, Interest, Taxes and Insurance. On a $425,000 home with 20% down ($85,000) at 6.5% for 30 years, principal and interest alone are $2,149.15 a month. Add typical property taxes of $4,200 a year ($350/month) and insurance of $1,800 a year ($150/month) and the real payment is about $2,649 a month — roughly $500 more than the figure most people quote.

If you put down less than 20%, most conventional loans also add private mortgage insurance (PMI), which protects the lender, not you. Our PMI calculator shows what it costs and when it drops off.

The mortgage payment formula

M = P × r(1+r)ⁿ ÷ ((1+r)ⁿ − 1)

Where M is the monthly principal-and-interest payment, P is the loan amount, r is the monthly interest rate (annual rate ÷ 12) and n is the number of payments (years × 12). Taxes, insurance, PMI and HOA dues are then added on top. Our step-by-step guide to calculating a mortgage payment walks through the math with a worked example.

5 ways to lower your monthly payment

A bigger down payment shrinks the loan and can remove PMI entirely at 20%.
A lower rate — even 0.5% less on a $340,000 loan saves about $110 a month. Compare at least three lenders.
A longer term lowers the payment but raises lifetime interest sharply; a 30-year loan on $340,000 at 6.5% costs $433,689 in interest — more than the loan itself.
Choosing a cheaper area — property tax rates range from about 0.3% (Hawaii) to over 2% (New Jersey), which can change the monthly bill by hundreds.
Paying extra principal later does not lower the required payment, but it shortens the loan — see the payoff calculator.

Before house-hunting, run the numbers in reverse with the home affordability calculator to find the price range your income can safely support.

Your next steps

Step 3

See the amortization schedule

Watch your balance fall month by month and see how much interest each payment contains.

Step 4

Pay it off years early

Add a small extra payment and see your payoff date jump forward.

Compare

Thinking of refinancing?

Check whether a new rate actually saves you money after closing costs.

Related calculators

Amortization Calculator

Every payment, principal vs interest, to payoff day.

Mortgage Payoff Calculator

Extra payments, lump sums, years and interest saved.

Home Affordability Calculator

How much house your income can really carry.

Calculator with Taxes & Insurance

The full PITI number your lender collects.

Frequently asked questions

How do I calculate my monthly mortgage payment?

Divide the loan into principal and interest using the standard amortization formula, then add monthly property taxes (annual tax ÷ 12), homeowners insurance (annual premium ÷ 12), PMI if your down payment is under 20%, and any HOA dues. This calculator does the whole thing instantly — on a $340,000 loan at 6.5% over 30 years, principal and interest are $2,149.15 a month before taxes and insurance.

What is a good monthly mortgage payment?

A common guideline is the 28% rule: your total housing costs should stay under 28% of your gross monthly income. On a $95,000 salary that is about $2,217 a month. Comfort depends on your other debts, savings and local costs, so treat 28% as a ceiling, not a target.

Does this calculator include taxes and insurance?

Yes. Enter your estimated yearly property tax and insurance premium and the calculator folds them into the monthly total, exactly the way a lender's escrow account does. If you leave them at zero, the result is principal and interest only.

Why is my lender's payment different from the calculator?

Small differences come from the exact tax and insurance figures for the specific property, escrow cushions (lenders may collect up to two extra months), PMI pricing based on your credit score, and prepaid items at closing. The calculator gives a close planning estimate; your Loan Estimate is the official figure.

How much does a 1% lower rate save?

On a $340,000, 30-year loan, dropping from 6.5% to 5.5% cuts the payment from $2,149 to about $1,931 — roughly $218 a month and about $78,600 less interest over the life of the loan. That is why comparing lenders matters more than almost anything else.

Sources & further reading

Official sources for program rules and consumer rights. Zorvex is not affiliated with these agencies; figures here are estimates for education.