REAL ESTATE
Mortgage Calculator
Estimate a monthly mortgage payment including principal, interest, property taxes, and insurance, with a full amortization schedule.
Monthly payment$691.76Principal, interest, taxes, and insurance
Principal and interest$441.76The loan itself, before taxes and insurance
Amount financed$80,000.00Loan amount minus the down payment
THE PAYMENT
What leaves the account each month.
$350.00 of the first payment is interest. The rest of the loan portion, $91.76, pays the balance down.
| Line | This month |
|---|---|
| Principal | $91.76 |
| Interest | $350.00 |
| Taxes | $166.67 |
| Insurance | $83.33 |
| Total | $691.76 |
THE LOAN
The terms behind the payment.
How the mortgage payment is calculated
- Subtract the down payment from the purchase or loan amount to find the financed principal.
- Apply the standard fixed-rate amortization formula using the monthly rate and number of payments.
- Add monthly property tax and homeowners insurance estimates.
- Build the amortization schedule by splitting each payment between interest and principal.
Worked example
A $100,000 price with $20,000 down finances $80,000. At 5.25% for 30 years, principal and interest are about $441.76 monthly before taxes and insurance.
Assumptions and boundaries
- The interest rate and principal-and-interest payment remain fixed.
- Taxes and insurance are spread evenly across 12 months.
- Payments occur monthly with no extra principal payments.
Important limitation: The estimate excludes mortgage insurance, HOA dues, closing costs, rate adjustments, lender fees, and changes in tax or insurance. Compare it with a lender’s Loan Estimate.
Sources and review
Methodology and links reviewed . This educational estimate is not financial, tax, legal, investment, or lending advice.
Frequently asked questions
- What does the monthly payment include?
- The displayed total includes principal, interest, entered property taxes, and entered insurance. It does not include every possible housing cost.
- Why is early payment interest so high?
- Interest is calculated on the remaining balance, which is largest at the start of an amortizing loan.