Calculate Mortgage Payments 2025: Complete Guide + Calculator
Want to know your exact monthly mortgage payment? Use our calculator to see principal, interest, taxes, insurance, and PMI — instantly. No guessing, no surprises. Just real numbers for your situation.
Calculate Your Exact Monthly Payment
See your complete payment breakdown including taxes and insurance. Compare lenders to find the best rate for your payment.
Calculate Your Payment →How Mortgage Payments Are Calculated
Your monthly mortgage payment includes four components: Principal, Interest, Taxes, and Insurance (PITI). Understanding each part helps you budget accurately.
📊 The PITI Formula
- Principal: Amount borrowed (paid down over time)
- Interest: Lender's fee (varies by rate and loan term)
- Taxes: Property taxes (varies by location)
- Insurance: Homeowners insurance + PMI (if down payment < 20%)
Compare lenders to see how different rates affect your payment. Or learn how compound interest affects your total costs.
Real Payment Examples: What Will You Actually Pay?
Let's look at real numbers to understand your payment breakdown:
💰 Example 1: $400K at 6.5% (30-year, 20% down)
- Home price: $400,000
- Down payment: $80,000 (20%)
- Loan amount: $320,000
- Interest rate: 6.5%
- Principal + Interest: $2,028/month
- Property taxes: $400/month
- Homeowners insurance: $150/month
- PMI: $0 (20% down = no PMI)
- TOTAL PAYMENT: $2,578/month
💰 Example 2: $400K at 6.5% (30-year, 5% down)
- Home price: $400,000
- Down payment: $20,000 (5%)
- Loan amount: $380,000
- Interest rate: 6.5%
- Principal + Interest: $2,410/month
- Property taxes: $400/month
- Homeowners insurance: $150/month
- PMI: $190/month (required with 5% down)
- TOTAL PAYMENT: $3,150/month
Difference: $572/month more with 5% down = $6,864/year extra!
💰 Example 3: $400K at 5.5% (15-year, 20% down)
- Home price: $400,000
- Down payment: $80,000 (20%)
- Loan amount: $320,000
- Interest rate: 5.5%
- Principal + Interest: $2,469/month
- Property taxes: $400/month
- Homeowners insurance: $150/month
- PMI: $0 (20% down = no PMI)
- TOTAL PAYMENT: $3,019/month
vs 30-year: $441/month more, but pay off 15 years earlier and save $300K in interest!
Compare rates to find the best payment for your budget. Want to understand how this payment builds wealth? See how homeownership builds equity.
Understanding Your Payment Breakdown
Each part of your payment serves a different purpose. Here's what you need to know:
💵 Principal (Builds Equity)
The amount you're actually paying down on the loan. Early payments are mostly interest, later payments mostly principal.
- Year 1: ~20% principal, 80% interest
- Year 15: ~50% principal, 50% interest
- Year 30: ~95% principal, 5% interest
💰 Interest (Lender's Fee)
What the lender charges for borrowing money. Higher rates = higher interest payments. See how compound interest adds up over 30 years.
- 6.5% rate on $320K = ~$2,028/month P&I
- 5.5% rate on $320K = ~$1,859/month P&I
- Difference: $169/month = $2,028/year = $60,840 over 30 years!
🏠 Taxes (Varies by Location)
Property taxes vary dramatically by state and county. Some areas are 0.5%, others 2%+ of home value.
- Low tax state (0.5%): $400K home = $167/month
- High tax state (2%): $400K home = $667/month
- Difference: $500/month = $6,000/year!
🛡️ Insurance (Homeowners + PMI)
Homeowners insurance protects your home. PMI protects the lender if you put down less than 20%.
- Homeowners insurance: $100-$300/month (varies by location)
- PMI (if <20% down): $100-$300/month (varies by down payment %)
- PMI goes away once you hit 20% equity
Get pre-approved to see your exact insurance costs.
Your Action Plan: Calculate Your Payment
- Determine home price: What's your target home price?
- Choose down payment %: 3%, 5%, 10%, 15%, or 20%?
- Select loan term: 15-year or 30-year mortgage?
- Check interest rates: Compare current rates from multiple lenders.
- Calculate payment: Use our calculator above to see your exact monthly payment.
- Get pre-approved: Get pre-approved to lock in your rate.
Ready to Calculate Your Payment?
Know your exact monthly payment before house hunting. Compare lenders and get pre-approved today.
Calculate & Compare Rates →Frequently Asked Questions
What's included in my mortgage payment?
Your payment includes Principal, Interest, Property Taxes, and Insurance (PITI). If you put down less than 20%, PMI is also included.
How much of my payment goes to principal vs interest?
Early payments are mostly interest (80-90%), later payments mostly principal (90%+). This is why paying extra principal early saves so much money.
Does my payment change over time?
Your principal + interest payment stays the same. However, property taxes and insurance can increase, raising your total payment over time.
What happens when I reach 20% equity?
Once you've paid down 20% of the home's value, PMI is removed and your payment drops. This typically takes 5-10 years depending on your down payment.
Can I pay extra principal without penalties?
Most mortgages allow extra principal payments without penalties. Always confirm with your lender before signing. Extra principal saves thousands in interest.
How do interest rates affect my payment?
Every 0.5% increase in rate adds ~$150-200/month to your payment on a $400K loan. Shopping for the best rate can save you thousands over the life of the loan.