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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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