The concept
What is a mortgage payment?
A mortgage payment commonly includes principal and interest. Depending on the location and arrangement, it may also include property taxes, insurance, association charges or other costs.
This calculator includes principal, interest and an optional property-tax estimate. It does not determine affordability or recommend a loan.
The method
How to calculate estimated monthly payment
The entered down payment is subtracted from the home price to produce the loan amount. The standard amortization formula calculates equal principal-and-interest payments across the selected term. One-twelfth of the entered annual property tax is then added.
M is the monthly principal-and-interest payment, P is the loan amount, r is the monthly rate and n is the number of payments.
Worked example
Mortgage Payment Calculator example
For a home price of $400,000, an $80,000 down payment, a 6% assumed fixed rate and a 30-year term, the calculation uses a $320,000 loan amount. Adding a $4,800 annual tax estimate contributes $400 per month.
This example explains the method. It does not recommend a financial action or predict an outcome.
Frequently asked
Mortgage Payment Calculator questions
Does the result include home insurance?
No. Insurance, association charges, closing costs and other expenses are excluded.
Is the interest rate a recommendation?
No. It is an assumption entered solely for calculation.
Can I enter a zero-percent rate?
Yes. The principal is then divided evenly across the selected number of payments.