Online Mortgage Calculator

Use our Online Mortgage Calculator Free to estimate your monthly mortgage payment. You can input a different home price, down payment, loan term and interest rate to see how your monthly payment changes.

Our monthly payment estimates are broken down by principal, interest, property taxes and homeowners insurance. We take our calculator a step further by factoring in your credit score range, ZIP code and HOA fees to give you a more precise payment estimate. You’ll also go into the home buying process with a more accurate picture of how to calculate mortgage payments and purchase with confidence. After you run some estimates, read on for more education and homebuying tips.

How to calculate mortgage payments

Want to figure out how much your monthly mortgage payment will be? For the mathematically inclined, here’s a formula to help you calculate mortgage payments manually:

Equation for mortgage payments

M = P[r(1+r)^n/((1+r)^n)-1)]

M = the total monthly mortgage payment

P = the principal loan amount

r = your monthly interest rate. Lenders provide you an annual rate so you’ll need to divide that figure by 12 (the number of months in a year) to get the monthly rate. If your interest rate is 5%, your monthly rate would be 0.004167 (0.05/12=0.004167).

n = number of payments over the loan’s lifetime. Multiply the number of years in your loan term by 12 (the number of months in a year) to get the number of total payments for your loan. For example, a 30-year fixed mortgage would have 360 payments (30x12=360).

This formula can help you crunch the numbers to see how much house you can afford. Using our mortgage calculator can take the work out of it for you and help you decide whether you’re putting enough money down or if you can or should adjust your loan term. It’s always a good idea to rate-shop with several lenders to ensure you’re getting the best deal available.

How a mortgage calculator can help

Buying a home is the largest purchase most people will make in their lifetime, so you should think carefully about how you’re going to finance it. Setting a budget upfront — long before you look at homes — can help you avoid falling in love with a home you can’t afford. That’s where a simple mortgage calculator like ours can help.

A mortgage payment includes four components that together are known as PITI (pronounced “pity”): principal, interest, taxes and insurance. Many homebuyers know about these costs but are not prepared for are the hidden expenses of homeownership. These include homeowners association (HOA) fees, private mortgage insurance, routine maintenance, larger utility bills and major repairs.

The Bankrate Mortgage Loan Calculator can help you factor in PITI and HOA fees, but not other expenses, so make sure the monthly payment it computes for you isn’t the absolute maximum of what you’ll be able to afford. It’s important to have some cushion in your budget for unexpected or emergency costs. You also can adjust your loan and down payment amounts, interest rate and loan term to see how those variables affect your monthly payment. Your specific interest rate will depend on your overall credit profile and debt-to-income ratio, or DTI, which is the sum of all of your debts and new mortgage payment divided by your gross monthly income. A lower credit score and higher DTI can make you a riskier borrower in lenders’ eyes. Generally, the riskier you seem on paper, the higher your interest rate will be.

Deciding how much house you can afford

If you’re not sure how much of your income should go toward housing, follow the tried-and-true 28/36 percent rule. Most financial advisers agree that people should spend no more than 28 percent of their gross income on housing (i.e., your mortgage payment), and no more than 36 percent of their gross income on total debt, including mortgage payments, credit cards, student loans, medical bills and the like.