Mortgage Payment Calculator (2024)

This mortgage payment calculator figures your monthly mortgage payment based on...show more instructions

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How Much Will Your Monthly Mortgage Payment Be?

You're looking for a house. You think you've found the perfect one.

Or, maybe you need to recalculate your mortgage for refinancing.

What will your monthly mortgage payment be?

That's an important question. Estimates provided by realtors and mortgage lenders don't always tell the whole story.

Thankfully, this Mortgage Payment Calculator helps you figure out your total monthly mortgage payment and print a complete amortization schedule for your records. You can include expenses such as real estate taxes, homeowners insurance, and monthly PMI, in addition to your loan amount, interest rate, and term.

Let's explore the concept of mortgages so that you understand how they work before you finance a home.

Mortgages And Your Budget

Mortgage comes from the Latin “mort”, or to the death. Think “mortician” or “mortality”. The idea is that you pay the loan until it “dies” due to the a-mort-ization of the loan (is paid off).

The bank or mortgage lender loans you a percentage of the home (usually 80% of the purchase price) which is known as the loan-to-value percentage. The mortgage loan will be paid with interest over a certain period of time called a “term.” If you, as the borrower, fail to pay the monthly mortgage payments, you are at risk of foreclosure.

Mortgage Payments

When you mortgage a house, a down payment is made. A common down payment amount is 20% of the purchase price. The higher the down payment you make, the smaller the amount you will need to finance, and the smaller your monthly mortgage payment will be.

Your monthly mortgage payment will be allocated into two main portions: a principal portion and an interest portion. Depending on how your loan is set up, you may also pay PMI, real estate taxes, and homeowners insurance with your mortgage payment.

By creating an amortization schedule using our calculator, you'll find that the interest portion of your payment initially exceeds the principal portion. Over time, this will flip-flop. The more principal you pay down the greater the percentage of each payment dedicated to principal.

It's good to be aware that you won't be paying much toward the principal of the mortgage in the beginning. If you want to learn more about how much principal you do need to pay for early payoff check out our Mortgage Payoff Calculator and find out about early payoff strategies – for example, in 15 years instead of 30.

What If You Can’t Pay Your Mortgage?

What if you not only can't pay off your mortgage early, but you're missing payments?

Missing mortgage payments could lead to the loss of your property. If you are in financial trouble and you fail to pay your monthly mortgage payments, your mortgage lender has the right to take your home and sell it to others to get their money back. This legal process is called foreclosure.

Before you fall behind in your payments, consider the following options to avoid foreclosure:

If your problem with paying the mortgage is short-term, then try arranging for a reinstatement – You can pay your lender the arrears plus the late fee or penalty on a date that you both agree.
Arrange for a repayment plan with your lender – Your lender will recalculate your monthly payment by adding the past due amount to your regular payments. But this option will only work if you haven't missed many payments.
Apply for forbearance if your income suspension is temporary – Arrange with your lender to temporarily suspend your monthly payments for a specific period of time. At the end of the forbearance period, you agree to continue paying the monthly mortgage payment plus the aggregate amount you missed. Your lender will assess your situation if you qualify for the forbearance plan and they will dictate the terms.
Check with your lender to see if they agree to a loan modification – Ask your lender to modify your loan terms. You could end up with a better deal than you currently have.
Consider refinancing – If you missed your payments due to non-mortgage debts, try consolidating your debt. Carefully evaluate the risks and advantages associated with this option before taking any steps.
Sell your home – Selling your home with little or no gain is better than foreclosure. Even going through a short sale might be worth it depending on the state you live in. Consider all options.

Final Thoughts

By starting on the right foot and making sure you can afford your mortgage payment, you won't have to worry about the consequences of not paying. Don't think you can afford a home just because your realtor says it is okay. Their incentives are different from yours.

Related: Why you need a wealth plan, not a financial plan.

If you're in the middle of a mortgage payment crisis, seek help through your mortgage lender and third parties. Don't give up without trying. You might be surprised what can be worked out if you just ask.

In either case, our Mortgage Payment Calculator can help you by determining your payment and providing a complete amortization schedule for further analysis.

Mortgage Payment Calculator Terms & Definitions

Principal (Mortgage Loan Amount)–The amount of money you borrowed to buy your home.
Annual Interest Rate (APR)– The percentage your lender charges on borrowed money.
Mortgage Loan Term– The number of years you are required to pay your mortgage loan.
Real Estate Taxes– Property taxes the government imposes based on a percentage of the value of your home. Enter an annual payment amount for the calculator.
Homeowners Insurance– A policy that protects you and the lender in case of loss due to fire, theft, bad weather. Enter an annual payment amount for the calculator.
Foreclosure – The process of a mortgage lender repossessing the home because of contractual failure due to missed payments.
Amortization Schedule – A table of all payments for the entire loan term showing each payment broken out into interest, principal, and remaining loan balance.
Short Sale – Selling a home for less than is owed, typically in conjunction with the mortgage lender, because the market resale value has declined since purchase.
PMI (Private Mortgage Insurance) – Insurance required by a mortgage lender and/or government in the case of a small down payment to insure the mortgage lender against the borrower not being able to make payments.

Related Mortgage Calculators:

Mortgage Payoff Calculator: How much extra payment should I make each month to pay off my mortgage by a specific date (and how much interest will I save)?
Bi-Weekly Mortgage Calculator: How much interest will I save paying my mortgage biweekly instead of monthly? How much more can I save if add an extra payment?
Mortgage Balance Calculator: What is my mortgage balance given the number of payments I've already made (or still need to make)?
Mortgage Refinance Calculator: How long will it take to break-even on my refinancing costs and what will be my total interest savings?
Interest Only Mortgage Calculator: How much lower will my payment be on an interest only mortgage compared to a conventional principle and interest mortgage?
Second Mortgage Calculator – Consolidate Savings With Refinance: How much will I save consolidating my first and second mortgages into a new first mortgage?
Rent vs. Buy Calculator: Should I rent or buy? What's the better deal?
Mortgage Affordability Calculator: How much house can I afford if I paid the same amount in mortgage as I pay in rent?
ARM Mortgage Calculator: How does an adjustable rate mortgage (ARM) compare to a fixed rate mortgage over the life of the loan (as opposed to just the teaser payment)?
Balloon Mortgage Calculator: How much will I owe (balloon) at the end of the payment period?

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FAQs

Are mortgage payment calculators accurate? ›

Mortgage calculators provide general estimates based on the information you input, such as loan amount, interest rate, and loan term. While they offer a close approximation, keep in mind that actual payments may vary based on factors like taxes, insurance and interest rates.

How do you accurately calculate mortgage payments? ›

For example, if your interest rate is 6 percent, you would divide 0.06 by 12 to get a monthly rate of 0.005. You would then multiply this number by the amount of your loan to calculate your loan payment. If your loan amount is $100,000, you would multiply $100,000 by 0.005 for a monthly payment of $500.

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Is the 28/36 rule realistic? ›

Since lenders look at a variety of factors, the 28/36 rule isn't necessarily a hard-and-fast mandate. When you consider how much property values have increased in recent years, even wages have stagnated, the rule may feel unrealistic.

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How much do I have to make to afford a $400000 mortgage? ›

The annual salary needed to afford a $400,000 home is about $127,000. Over the past few years, prospective homeowners have chased a moving target: homeownership. The median sales price of houses sold in the U.S. stood at $417,700 in the fourth quarter of 2023—down from a peak of $479,500 in Q4 2022.

Do mortgage calculators overestimate? ›

These mortgage calculators can often overestimate how much you can borrow, under-estimate how much you can borrow, or alternatively they may reject you outright even if you are a viable candidate.

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How much house can I afford if I make $70,000 a year? ›

One rule of thumb is that the cost of your home should not exceed three times your income. On a salary of $70k, that would be $210,000. This is only one way to estimate your budget, however, and it assumes that you don't have a lot of other debts.

How much is a 200K mortgage per month? ›

As far as the simple math goes, a $200,000 home loan at a 7% interest rate on a 30-year term will give you a $1,330.60 monthly payment. That $200K monthly mortgage payment includes the principal and interest.

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How much house can I afford with $10,000 down? ›

If you have a conventional loan, $800 in monthly debt obligations and a $10,000 down payment, you can afford a home that's around $250,000 in today's interest rate environment.

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What is the rule of thumb for calculating mortgage? ›

The 28% rule

The 28% mortgage rule states that you should spend 28% or less of your monthly gross income on your mortgage payment (e.g., principal, interest, taxes and insurance). To determine how much you can afford using this rule, multiply your monthly gross income by 28%.

How much house can I afford with a 100k salary? ›

Using my rough estimates and plugging in the factors mentioned above, someone with a $100k salary should look for a home between $320,000 – $400,000. Bear in mind that in 2023's high-interest rate environment, $300k+ won't go as far as it would when interest rates were sub 4% back in 2022.

What is the rule of 3 when buying a house? ›

How Much House Can I Afford? If you really want to keep your personal finances easy to manage don't buy a house for more than three times(3X) your income. If your household income is $120,000 then you shouldn't be buying a house for more than a $360,000 list price. This is the price cap, not the starting point.

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Can a single person afford a 400k house? ›

Your payment should not be more than 28%. of your total gross monthly income. That means you'll need to make 11,500 dollars a month, or 138 k per year. in order to comfortably afford this 400,000 dollar home.

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What income is needed for a $500,000 mortgage? ›

In today's climate, the income required to purchase a $500,000 home varies greatly based on personal finances, down payment amount, and interest rate. However, assuming a market rate of 7% and a 10% down payment, your household income would need to be about $128,000 to afford a $500,000 home.

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How much do I need to make to buy a $500K house with an FHA loan? ›

To afford a $500,000 house, you need to make a minimum of $91,008 a year — and probably more to make sure you're not house-poor and can afford day-to-day expenses, maintenance and other debt, like student loans or car payments. One good guideline to follow is not to spend more than 28 percent of your income on housing.

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Why is my mortgage payment higher than the mortgage calculator? ›

You could see a rise in your mortgage payment for a few reasons. These include an increase in your property tax, homeowners insurance premium, or both.

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Do mortgage calculators affect credit score? ›

No, you can use all our mortgage calculators safe in the knowledge that your credit score won't be affected.

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Why is my mortgage estimate so high? ›

The Bottom Line

There are four main factors that can affect a mortgage payment: escrow account, property taxes, homeowners insurance and interest rate. Members of the armed forces may also see a rise in mortgage payments when they come off active duty.

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