PercentLab

Mortgage Calculator

Calculate monthly mortgage payments, total interest, and amortization schedule. Includes property tax and insurance estimates.

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Formula

M = P[r(1+r)^n]/[(1+r)^n-1] + Property Tax/12 + Insurance/12

Example

home Price:300000
down Payment:60000
loan Amount:240000
interest Rate:4.5
loan Term:30
monthly Payment:1216.04
total Interest:197774.4

Frequently Asked Questions

Use the formula M = P[r(1+r)^n]/[(1+r)^n-1] where P=loan amount, r=monthly interest rate, n=total payments. For a $240,000 loan at 4.5% for 30 years: monthly payment = $1,216.04. Add property tax and insurance for total monthly cost.

Conventional wisdom suggests 20% to avoid PMI (Private Mortgage Insurance). However, many loans allow 3-10% down. A larger down payment reduces loan amount, monthly payments, and total interest paid.

PITI: Principal (loan paydown), Interest (cost of borrowing), Taxes (property tax), Insurance (homeowners insurance and possibly PMI). Some lenders also include HOA fees in the monthly payment.

15-year mortgages have higher monthly payments but lower interest rates and less total interest paid. 30-year mortgages have lower monthly payments but more total interest. Choose based on your budget and financial goals.

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Last updated: 2025-11-13