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Mortgage Payment Calculator

Calculate your monthly mortgage payments based on interest rate and loan terms.

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Calculation Parameters

Specify your inputs below.

Calculated Result

Monthly Principal & Interest (P&I) $1,769.82
Total Monthly Payment (PITI) $2,069.82
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Expert Tip

Putting down 20% or more helps you avoid paying Private Mortgage Insurance (PMI) on conventional loans.

How this Calculator Works

This calculator computes your monthly home mortgage payment. It factors in the loan principal, annual interest rate, loan term, property taxes, homeowner's insurance, and private mortgage insurance (PMI).

Formula & Methodology

Monthly Principal & Interest = Principal * [ r * (1 + r)^n ] / [ (1 + r)^n - 1 ] Total Monthly Payment = Monthly Principal & Interest + Property Tax + Insurance + HOA + PMI - Principal is the total home loan amount borrowed. - r is the monthly interest rate (annual interest rate / 12 / 100). - n is the total number of monthly payments.

Step-by-Step Calculation Example

Here is a step-by-step example showing how the calculations are performed:

You borrow a $300,000 mortgage at a 6% annual interest rate over a 30-year term (360 months). 1. Calculate the monthly interest rate: 0.06 / 12 = 0.005. 2. Compute the amortization factor: [ 0.005 * (1.005)^360 ] / [ (1.005)^360 - 1 ] = 0.0059955. 3. Calculate base payment: $300,000 * 0.0059955 = $1,798.65. Result: The base monthly mortgage payment is $1,798.65.

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Detailed Insights & Expert Guide

ℹ️ About this Calculation

This real estate investment and mortgage calculator evaluates principal & interest monthly payments, capitalization rates (Cap Rate), Cash-on-Cash returns, property tax liabilities, Loan-to-Value (LTV) ratios, and refinance break-even schedules.

Variable Glossary

Input

Property & Loan Data

Purchase price ($), down payment %, mortgage interest APR %, loan term (years), gross rental income, or operating expenses.

Parameter

Real Estate Yield

Net Operating Income (NOI), Cap Rate %, Cash-on-Cash yield %, monthly debt service (P&I), and total closing costs.

How to Calculate Step-by-Step

1

Step 1

Enter target home purchase price, down payment percentage, and loan term duration.

2

Step 2

Input property taxes, homeowners insurance, HOA fees, vacancy rate %, and maintenance reserve estimates.

3

Step 3

Review full amortization schedule breakdown, cash-on-cash annual return, or debt-to-income (DTI) qualification score.

FAQ

What is Capitalization Rate (Cap Rate) in real estate?
Cap Rate = Net Operating Income (NOI) / Current Property Value. It measures an unleveraged property's natural rate of return independent of debt financing.
How does Cash-on-Cash Return differ from Cap Rate?
Cash-on-Cash Return calculates Annual Net Pre-Tax Cash Flow divided by Total Out-of-Pocket Cash Invested (down payment + closing costs + rehab). It incorporates debt leverage effects.
What DTI ratio limits do mortgage lenders enforce?
Most conventional lenders prefer a front-end housing DTI under 28% and a total back-end debt DTI under 36% to 43% (up to 50% for FHA/VA backed loans).