Formula
Mortgage payment formula
Monthly principal and interest = principal x monthly rate / (1 - (1 + monthly rate)^-months)The monthly estimate adds property tax, insurance, and HOA to principal and interest.
Money Calculators
Mortgage Calculator
Use this mortgage calculator to estimate a monthly house payment from home price, down payment, interest rate, taxes, insurance, and HOA fees.
Reviewed May 25, 2026EstimateFormula shown
Live calculator
Mortgage payment
Estimated monthly payment$2,565.51
Principal, interest, estimated property tax, insurance, and HOA.
Principal and interest$2,075.51
Loan amount is $320,000 after $80,000 down.
Total interest$427,185
30 year loan term at the entered rate.
What this payment includes
$2,075.51 goes to principal and interest before taxes, insurance, and HOA. The all-in estimate is $2,565.51 per month, based on a $320,000 loan over 360 payments.
Monthly payment breakdown
This separates the loan payment from common ownership costs.
| Part | Amount |
|---|---|
| Principal and interest | $2,075.51 |
| Property tax | $350.00 |
| Insurance | $140.00 |
| HOA | $0.00 |
| Estimated total | $2,565.51 |
Amortization preview
Annual principal, interest, and remaining balance. Long loans show the first years and final year.
| Year | Principal | Interest | Ending balance |
|---|---|---|---|
| Year 1 | $3,410.39 | $21,495.77 | $316,589.61 |
| Year 2 | $3,647.85 | $21,258.31 | $312,941.75 |
| Year 3 | $3,901.84 | $21,004.32 | $309,039.91 |
| Year 4 | $4,173.52 | $20,732.64 | $304,866.39 |
| Year 5 | $4,464.12 | $20,442.05 | $300,402.27 |
| Year 30 | $24,018.94 | $887.22 | $0.00 |
How to use
Steps
- Enter the home price.
- Enter the down payment percentage.
- Enter the interest rate and loan term.
- Add annual property tax, monthly insurance, and HOA to estimate the full housing payment.
Example
Sample calculation
Home price$400,000
Down payment20%
Rate and term6.75% for 30 years
Principal and interest$2,075.51
Monthly payment$2,565.51
Calculator use
Best for
- Quick monthly mortgage payment from home price, down payment and interest rate.
- Personal finance scenarios before changing a budget, loan, savings goal, or purchase plan.
- Monthly cash flow, affordability, debt payoff, or future-value estimates.
- Assumption checks before talking with a lender, tax preparer, employer, or financial professional.
Before relying on it
Check first
- Entering home price, down payment and interest rate from different time periods or scenarios.
- Mixing gross income, take-home income, one-time costs, and monthly costs in the same comparison.
- Forgetting taxes, fees, insurance, irregular bills, or minimum payments when using an estimate.
- Treating a planning estimate as a quote, tax filing result, approval decision, or guaranteed return.
Benchmarks
How to read the result
The calculator is a decision aid, not a fixed rule. Use the output to compare scenarios and document your assumptions.
15 yearsHigher payment
Usually costs less total interest but requires a larger monthly payment.
30 yearsCommon term
Usually lowers the monthly payment but increases total interest.
PITI + HOAFull payment
Principal, interest, taxes, insurance, HOA, and PMI all matter for affordability.
Calculator accuracy
Methodology and assumptions
The formula, inputs, example, and limitations are shown so the result is checkable, not just a number in a box.
Formula
Monthly principal and interest = principal x monthly rate / (1 - (1 + monthly rate)^-months)
Inputs used
Home price, Down payment, Interest rate, Loan term, Property tax, Insurance
Limitations
Results are estimates for quick planning and should be checked before important financial, legal, tax, health, or business decisions.
Last reviewed
May 25, 2026
Cite this page
Toolkit Shelf. Mortgage Calculator. Retrieved May 25, 2026, from https://toolkitshelf.com/tools/mortgage-calculator
FAQ
Common questions
What is included in the mortgage payment estimate?
The estimate includes principal and interest plus the property tax, insurance, and HOA amounts you enter.
Does this include PMI?
No. Add any PMI estimate to the insurance or HOA field if you want it reflected in the monthly total.
Why is total interest so high on long loans?
Longer terms spread payments over more months, so interest has more time to accumulate.
What is the difference between principal and interest and the full payment?
Principal and interest is the loan payment. The full monthly estimate also adds property tax, insurance, and HOA amounts you enter.