Mortgage Payment Calculator the whole monthly cost
Price, deposit, rate and term give the loan payment. Add the yearly tax and insurance bills and you get the number that actually leaves your account each month.
PITI, Not Just P&I
Principal, Interest, Taxes and Insurance — the four parts of a real housing payment.
Mortgage Insurance Excluded
Below a 20 % deposit most lenders add mortgage insurance, which is not part of this figure.
What is a mortgage payment calculator?
At a Glance
A mortgage payment calculator turns a property price, a deposit, an interest rate and a term into the monthly housing payment — and, unlike a plain loan calculator, it adds the two bills that ride along with almost every mortgage: property tax and home insurance. That combination is what lenders call PITI, and it is the figure affordability is judged on.
There are two independent steps, and confusing them is the most common reason people underestimate a housing budget.
Step one is the loan. The amount financed is the price minus the deposit, and a fixed-rate mortgage is a standard annuity: an identical payment every month, each one covering the interest accrued since the last and putting the remainder against the balance.
M = P × i × (1 + i)ⁿ ÷ ((1 + i)ⁿ − 1)Step two is everything else. Property tax and home insurance are annual bills; lenders usually collect one twelfth of each alongside the loan payment and hold it in escrow. This calculator does the same division, so the headline figure is directly comparable to the number a lender quotes.
According to the Consumer Financial Protection Bureau, tax and insurance routinely add 15 to 30 % on top of principal and interest — which is why a payment quoted as "P&I only" is not a housing budget. On the default figures here they add 550 a month, or 27 %.
Two things are deliberately left out. Mortgage insurance applies below a 20 % deposit and is priced per lender and per credit profile, so a single default would be fiction. Association or maintenance fees vary by property. Both are real, and both belong in your own budget on top of the number shown.
These are the values the calculator loads by default.
Work out what is actually financed
400,000 − 80,000 = 320,000. The deposit is 20 % of the price, which is the usual threshold for avoiding mortgage insurance.
Turn the rate into a monthly rate
6.5 % ÷ 12 = 0.541667 % per month, or 0.0054167 as a decimal, across 30 × 12 = 360 payments.
Apply the annuity formula
The principal-and-interest payment is 2,022.62 a month.
Add the escrowed bills
4,800 tax ÷ 12 = 400. 1,800 insurance ÷ 12 = 150. Total housing payment: 2,572.62.
Look at the lifetime cost
360 payments of 2,022.62 repay 728,142 against a 320,000 loan — 408,142 in interest, more than the amount borrowed.
The monthly figure answers affordability. The lifetime figure answers value, and the two often point in opposite directions.
The term is the biggest lever on total cost. The same 320,000 at 6.5 % over 15 years costs 2,787.54 a month — 765 more — but total interest falls from 408,142 to 181,758. Halving the term more than halves the interest, because the balance spends far less time outstanding.
The deposit works twice. Dropping from 20 % to 10 % raises the financed amount to 360,000, the payment to 2,275.44 and the interest to 459,160 — and it typically triggers mortgage insurance on top. That is roughly 253 a month and 51,000 over the term for the 40,000 you did not put down.
A rate point is worth a lot at 30 years. At 5.5 % instead of 6.5 %, the same loan costs 1,816.92 a month and 334,093 in interest — about 206 a month and 74,000 in total.
Escrow drifts. Tax assessments and insurance premiums are re-set annually, so the tax and insurance parts of the payment move even on a fixed-rate mortgage. Expect the total to creep upward over the years.
For the payment-by-payment split, use the Amortization Schedule Calculator. For a loan without tax and insurance, the Loan Payment Calculator is simpler.
What this estimate does and does not include
This calculator is for informational purposes and models a fixed-rate, fully amortizing mortgage with monthly compounding. It is not a lender quote.
- Mortgage insurance is excluded. Below a 20 % deposit most lenders add it; the premium depends on the loan-to-value ratio and your credit profile.
- Closing costs are excluded. Origination, appraisal, title and transfer taxes are paid at completion, not financed into the payment.
- Tax and insurance are estimates. Both are re-assessed annually and vary enormously by locality — always use your own assessment notice and quote where you have them.
- Adjustable rates only hold to the first reset. Everything after that is a projection at the current rate.
- Association and maintenance fees are excluded. Budget for them separately.
Totals are summed from unrounded monthly values; displayed figures are rounded to two decimals. Verify every number against the lender's binding offer, and consult a qualified financial advisor or mortgage broker before committing.