Calculate Mortgage Payment
Calculate anything using Sourcetable AI. Tell Sourcetable what you want to calculate and see your results in a spreadsheet.
Introduction
Understanding your monthly mortgage payment is one of the most important steps when planning to buy a home. Our mortgage payment calculator helps you estimate your total monthly payment, including principal, interest, property taxes, homeowners insurance, and PMI (Private Mortgage Insurance). This comprehensive PITI calculator gives you a complete picture of your housing costs.
Whether you're a first-time homebuyer or refinancing an existing mortgage, knowing your monthly payment helps you budget effectively and determine how much house you can afford. With Sourcetable's AI-powered calculator at app.sourcetable.com/signup, you can explore different scenarios and make informed decisions about your home purchase.
Mortgage Payment Calculator
Estimate your monthly payment including principal, interest, taxes, and insurance.
This calculator provides estimates for informational purposes only. Actual rates and payments may vary by lender.
How the Mortgage Calculator Works
The Mortgage Payment Formula
Our calculator uses the standard mortgage payment formula: M = P × [r(1+r)^n] / [(1+r)^n - 1]. Here, M represents your monthly payment, P is the principal loan amount (home price minus down payment), r is your monthly interest rate (annual rate divided by 12), and n is the total number of monthly payments (loan term in years multiplied by 12).
Understanding PITI
PITI stands for Principal, Interest, Taxes, and Insurance - the four components of your total monthly housing payment. Principal is the amount you're borrowing, interest is the cost of borrowing that money, taxes are your annual property taxes divided by 12, and insurance includes both homeowners insurance and PMI if your down payment is less than 20%.
What Factors Affect Your Payment
Your monthly mortgage payment is influenced by several key factors: the home price, your down payment amount, the interest rate, and the loan term (15 or 30 years most commonly). A larger down payment reduces your loan amount and may eliminate the need for PMI. Lower interest rates result in lower monthly payments, while shorter loan terms mean higher monthly payments but less interest paid overall.
Try Sourcetable For Free
Calculate anything with Sourcetable AI. Tell Sourcetable what you want to calculate. Sourcetable does the rest.
Sign Up
Mortgage Payment Calculation Examples
Example 1: 30-Year Fixed with 20% Down
For a $300,000 home with a $60,000 down payment (20%), at 6.5% interest over 30 years, your loan amount would be $240,000. Using the mortgage formula, your monthly principal and interest payment would be $1,517. Add $300/month for property taxes and $100/month for insurance, and your total PITI payment is $1,917 per month.
Example 2: 15-Year Fixed with 10% Down
Consider a $400,000 home with $40,000 down (10%), at 5.875% interest for 15 years. Your loan amount is $360,000. The monthly principal and interest is $3,021. Since you put less than 20% down, you'll need PMI at roughly $150/month. Add $400/month property tax and $125/month insurance for a total monthly payment of $3,696.
Example 3: First-Time Homebuyer with 5% Down
A $250,000 home with just $12,500 down (5%), at 7% interest for 30 years, means borrowing $237,500. Your principal and interest payment would be $1,580. With PMI at $200/month, property tax at $250/month, and insurance at $100/month, your total monthly payment is $2,130.
When to Use a Mortgage Calculator
Home Shopping and Budgeting
Before you start looking at homes, use the mortgage calculator to determine what monthly payment you can comfortably afford. This helps you set a realistic price range and avoid falling in love with a home that's outside your budget.
Comparing Loan Options
Use the calculator to compare different scenarios: 15-year vs 30-year loans, various down payment amounts, or different interest rates. This helps you understand the long-term cost implications of each choice.
Refinancing Decisions
If you're considering refinancing your current mortgage, the calculator helps you determine if a lower interest rate will result in meaningful savings after accounting for closing costs.
Pre-Approval Preparation
Calculate your expected monthly payment before meeting with lenders. This preparation helps you ask informed questions and negotiate better terms.
Frequently Asked Questions
What is included in a mortgage payment?
A complete mortgage payment (PITI) includes four components: Principal (the loan amount), Interest (the cost of borrowing), property Taxes, and Insurance (both homeowners insurance and PMI if applicable).
How much down payment do I need?
While you can put as little as 3-5% down on some loans, a 20% down payment is ideal because it eliminates the need for PMI and often qualifies you for better interest rates. The more you put down, the lower your monthly payment and total interest paid.
What is PMI and when is it required?
PMI (Private Mortgage Insurance) is required when your down payment is less than 20% of the home's value. It protects the lender if you default on the loan. PMI typically costs 0.5% to 1% of the loan amount annually and can be removed once you reach 20% equity.
Should I choose a 15-year or 30-year mortgage?
A 15-year mortgage has higher monthly payments but significantly lower total interest paid. A 30-year mortgage has lower monthly payments, providing more budget flexibility, but costs more in interest over time. Choose based on your budget and financial goals.
How does interest rate affect my payment?
Interest rate has a major impact on your monthly payment. For example, on a $300,000 loan, a 1% increase in rate (from 6% to 7%) adds about $180 to your monthly payment and over $64,000 in total interest over 30 years.
Conclusion
Calculating your mortgage payment accurately is essential for making informed home buying decisions. Our mortgage calculator provides a comprehensive view of your monthly housing costs, including principal, interest, taxes, and insurance.
Analyze Scenarios with Sourcetable
Sourcetable's AI-powered spreadsheet takes mortgage calculations to the next level. Build detailed amortization schedules, compare multiple loan scenarios, and analyze the impact of extra payments - all with simple natural language commands. Try Sourcetable for free at app.sourcetable.com/signup.
Try Sourcetable For Free
Calculate anything with Sourcetable AI. Tell Sourcetable what you want to calculate. Sourcetable does the rest.
Sign Up
Calculate anything you want with AI
Sourcetable takes the math out of any complex calculation. Tell Sourcetable what you want to calculate. Sourcetable AI does the rest. See the step-by-step result in a spreadsheet and visualize your work. No Excel skills required.