How your mortgage payment is calculated
Your monthly payment combines principal and interest with estimated property costs. For a fixed-rate loan, principal and interest use the standard amortization formula:
A monthly payment is only part of the upfront home-buying budget. Before finalizing a purchase price, use the Closing Costs Calculator to estimate buyer fees, prepaid expenses, and total cash needed to close.
M = P × r(1 + r)n(1 + r)n − 1
- P
- loan principal
- r
- monthly interest rate
- n
- number of payments
Frequently asked questions
What is included in the monthly payment?
Principal, interest, property taxes, home insurance, estimated PMI, HOA fees, and any extra monthly payment you enter.
When is PMI included?
SimpleCalc estimates PMI when the down payment is below 20% of the home price. Your lender’s actual rate may differ.
How can I pay off my mortgage sooner?
Add an extra monthly payment in Advanced options to compare payoff time and total interest.
Is this calculator financial advice?
No. It is an educational estimate. Confirm rates, taxes, fees, and eligibility with a qualified lender.