Online Mortgage Calculator 2025

Estimate your monthly payment and see a full breakdown of costs.

Home & Loan Details
Additional Costs (Annual)

Estimated Monthly Payment

$0

Payment Breakdown

Loan Amortization

Mortgage FAQ

What is PITI?

PITI stands for Principal, Interest, Taxes, and Insurance. These are the four main components of a monthly mortgage payment. Principal is the portion that reduces your loan balance. Interest is the cost of borrowing money. Taxes refer to property taxes, and Insurance is your homeowner's insurance premium. This calculator also includes optional HOA fees and PMI.

What is PMI and how can I avoid it?

Private Mortgage Insurance (PMI) is a type of insurance that protects the lender if you default on your loan. It's typically required if your down payment is less than 20% of the home's purchase price. To avoid PMI, you can make a down payment of 20% or more. Once you reach 20% equity in your home, you can usually request to have PMI removed.

How do Property Taxes and Insurance work?

Lenders often collect property taxes and homeowner's insurance premiums as part of your monthly mortgage payment. They hold these funds in an escrow account and pay the bills on your behalf when they are due. This calculator takes your annual cost for each and divides it by 12 to add to your monthly payment.

Mortgage Calculator Guide

Mortgage Calculator: A Complete Guide

Buying a home is one of the most significant financial decisions you'll ever make. Understanding mortgage payments, interest rates, and loan terms is critical to effective budgeting and avoiding surprises.

What Is a Mortgage Calculator?

A mortgage calculator is an online tool that helps estimate monthly mortgage payments based on variables like loan amount, interest rate, and loan term.

How Does a Mortgage Calculator Work?

Mortgage calculators use a standard formula:

\[ M = \frac{P r (1 + r)^n}{(1 + r)^n - 1} \]

Where:

  • \( M \) = Monthly payment
  • \( P \) = Principal loan amount
  • \( r \) = Monthly interest rate (annual rate ÷ 12)
  • \( n \) = Total number of payments (loan term in years × 12)

Types of Mortgage Calculators

  • Basic Mortgage Calculator: Estimates monthly principal and interest payments.
  • Affordability Calculator: Determines how much house you can afford.
  • Refinance Calculator: Compares current mortgage terms with potential refinancing options.
  • Amortization Calculator: Generates a payment schedule.
  • Extra Payment Calculator: Shows how additional payments reduce interest and shorten loan term.

Example Calculation

For a home price of $400,000 with a 20% down payment:

  • \( P = 320,000 \)
  • \( r = 0.06 \) annually (\( 0.005 \) monthly)
  • \( n = 30 \times 12 = 360 \)

Monthly Payment:

\[ M = \frac{320,000 \times 0.005 (1 + 0.005)^{360}}{(1 + 0.005)^{360} - 1} \]

Why Use a Mortgage Calculator?

  • Budget Accurately: Avoid overextending finances.
  • Compare Loan Options: Find the best deal.
  • Plan for the Future: Understand how extra payments impact long-term savings.

Top Mortgage Calculators to Try

  • Zillow Mortgage Calculator: User-friendly with various options.
  • Bankrate Calculator: Detailed breakdowns.
  • NerdWallet Affordability Calculator: Factors in debt-to-income ratio.
  • Calculator.net: Advanced tools for extra payments and amortization.

Final Thoughts

A mortgage calculator is a powerful tool that helps you make informed decisions. Try one today to unlock smarter homebuying!