Monthly Payment
liveUnderstanding monthly payment
The Monthly Mortgage Payment Calculator is built around the same formulas your lender uses. Below is the math, in plain language, so you understand exactly what the numbers mean.
The core mortgage formula
Every amortizing mortgage payment follows the same equation: M = P × [r(1+r)n] / [(1+r)n − 1], where P is the principal loan amount, r is the monthly interest rate (annual rate divided by 12), and n is the total number of monthly payments. This formula produces a level payment that pays off the loan exactly over its term — front-loaded with interest, back-loaded with principal.
Why amortization matters
In the first year of a 30-year mortgage at 6.875%, roughly 86% of each payment goes to interest. By year 20, that flips — most of your payment is now retiring principal. Understanding this curve is the key to making smart decisions about extra payments, refinancing, and how long to stay in a home.
What this calculator includes
Get the full picture of your monthly housing cost. We break down every component — principal, interest, property taxes, homeowners insurance, PMI, and HOA — so there are no surprises at closing or after. Every input updates the result in real time — no submit button, no page reload, no data sent anywhere.
Monthly Payment questions
What is included in a monthly mortgage payment?
A monthly mortgage payment typically includes four components known as PITI: Principal, Interest, Taxes, and Insurance. If your down payment is less than 20%, you'll also pay PMI (Private Mortgage Insurance). HOA dues, if applicable, are added on top.
How is the monthly principal and interest calculated?
The formula is M = P × [r(1+r)^n] / [(1+r)^n - 1], where P is the loan principal, r is the monthly interest rate (annual rate divided by 12), and n is the total number of monthly payments.
When does PMI go away?
For conventional loans, PMI is automatically removed when your loan-to-value ratio reaches 78% of the original home value. You can also request removal at 80% LTV based on a new appraisal.