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Mortgage Calculator

Calculate your monthly payment and total cost of a home loan.

▶ Add taxes, insurance & PMI (optional)

How Mortgage Payments Are Calculated

Monthly mortgage payments use the standard amortization formula:

M = P × [r(1+r)ⁿ] / [(1+r)ⁿ − 1]

Where M = monthly payment, P = principal loan amount, r = monthly interest rate, n = number of payments.

Frequently Asked Questions

What is included in a monthly mortgage payment? ▼

A basic mortgage payment covers principal and interest (P&I). You can also include property taxes, homeowner's insurance, and PMI (private mortgage insurance if your down payment is less than 20%) using the optional fields above.

How does a larger down payment affect my payment? ▼

A larger down payment reduces your loan amount, which lowers both your monthly payment and total interest paid. Putting down 20% also eliminates the need for PMI.

What is PMI? ▼

PMI (Private Mortgage Insurance) is required by most lenders when your down payment is less than 20% of the home price. It typically costs 0.5%–1.5% of the loan amount per year.

How much does an extra monthly payment save? ▼

Even small extra payments dramatically reduce your total interest paid and shorten your loan term. Use the 'Extra Monthly Payment' field to see your specific savings.

Should I choose a 15 or 30 year mortgage? ▼

A 15-year mortgage has higher monthly payments but significantly less total interest paid. A 30-year mortgage has lower monthly payments giving more flexibility. The best choice depends on your monthly budget and financial goals.

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