How to calculate a mortgage payment
The fixed monthly principal-and-interest payment is found from the loan amount, the monthly interest rate (annual rate ÷ 12) and the number of payments (years × 12), using the standard amortization formula. Property tax, home insurance and HOA fees are added on top to estimate the full payment lenders call PITI.
Example: a $300,000 loan at 6.5% for 30 years has a principal-and-interest payment of about $1,896 a month, before taxes and insurance.
Total interest over the life of the loan
Multiply the monthly payment by the number of payments to get the total paid, then subtract the loan amount for the total interest. Interest makes up most of the early payments and shrinks over time as the balance goes down.
Estimates only, for general information — not a loan offer or financial advice. Last updated
Frequently asked questions
How is a mortgage payment calculated?
The standard amortization formula spreads the loan amount over the term at a fixed monthly rate, so every payment is the same size but the mix of principal and interest changes over time.
Does this include property tax and insurance?
Yes, if you enter them. Annual property tax and insurance are added on top of principal and interest to estimate your full monthly payment, sometimes called PITI.
What if I have an adjustable rate?
Enter your current rate to estimate today's payment. The result will change once an adjustable rate resets, so re-check it closer to that date.
Is my loan information stored anywhere?
No. The calculation runs in your browser and nothing you enter is sent to a server.
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