Mortgage Payment Calculator
Estimate your monthly mortgage payment for a home in the United States or Canada, including principal, interest, taxes, insurance, and HOA fees. Compare extra-payment scenarios instantly.
Model your mortgage
Purchase price, up to $100 million.
≈0.0% of home price.
Nominal annual rate from 0% through 25%.
Includes $2,528.27 principal & interest.
- Loan amount
- $400,000.00
- Total interest (P&I)
- $510,177.95
- Total cost of loan
- $910,177.95
- Payoff time
- 30 years
What if you paid extra each month?
How mortgage payments are calculated
A fixed-rate mortgage payment is calculated using the standard loan amortization formula, which spreads principal and interest into equal payments over the loan term. Optional property tax, home insurance, and HOA fees are added on top as simple monthly pass-through estimates.
M = P × r(1 + r)n / ((1 + r)n − 1)- M
- Monthly principal & interest payment
- P
- Loan amount (home price minus down payment)
- r
- Monthly interest rate
- n
- Total number of monthly payments
The United States and Canada toggle changes more than currency labels here — it changes the math. US mortgages typically quote a nominal annual rate compounded monthly, so the monthly rate is simply the annual rate divided by 12. Canadian mortgages are legally required to compound semi-annually, even though payments are made monthly, so the same nominal quoted rate produces a slightly different effective monthly rate — and usually a slightly lower monthly payment — than the US convention.
$400,000 home with a $80,000 down payment
For a $400,000 home with a $80,000 down payment (20%), a 6% annual rate, and a 30-year term in the United States, the loan amount is $320,000. This produces an estimated monthly principal & interest payment of $1,918.56, total interest of $370,682.20, and a total cost of $690,682.20 over the full 360-month (30-year) payoff.
With the same inputs modeled under Canada's semi-annual compounding convention, the estimated monthly principal & interest payment is $1,903.43 and total interest is $365,236.58 — lower than the US figure because Canadian mortgages compound less frequently for the same nominal rate.
What this calculator assumes
- The entered interest rate is fixed and held constant for the full loan term; adjustable or variable rates are not modeled.
- Property tax, home insurance, and HOA/condo fees are optional pass-through estimates, not part of the loan itself.
- Private mortgage insurance (PMI) or mortgage default insurance is not modeled.
- Any extra monthly payment is assumed to be applied entirely to principal, reducing the loan balance faster.
- Money values are rounded to the nearest cent for display.
Understanding the Mortgage Payment Calculator
A mortgage is almost certainly the largest loan you will ever take on, and the monthly payment quietly shapes your budget for decades. This calculator turns a home price, down payment, interest rate, and term into a clear monthly figure — and then adds the parts people forget, like property tax, home insurance, and HOA or condo fees.
It is built to answer the real question behind house hunting: not just what a home costs, but what it costs you every month, and how that number moves when you change the down payment, shop a lower rate, stretch the term, or send extra principal.
Who this calculator is for
- First-time buyerswho want to know what a realistic monthly payment looks like before talking to a lender.
- Move-up and repeat buyerscomparing a new purchase price and rate against the payment they have today.
- Rate and refinance shopperschecking how a fraction of a percentage point changes the payment and total interest.
- Canadian buyerswho need semi-annual compounding modeled correctly rather than the US monthly convention.
- Budget-minded homeownerstesting whether extra monthly principal can shave years off the loan.
Why it matters
- It shows the full PITI picture — principal, interest, taxes, and insurance — instead of just the loan payment, so the number is closer to what actually leaves your account.
- It makes the down payment tradeoff concrete: a larger down payment lowers the loan, the payment, and total interest, and in the US can help you avoid PMI once you cross 20% equity.
- It quantifies the term decision, so you can see how a 15-year loan raises the monthly payment but slashes lifetime interest versus a 30-year loan.
- It models US and Canadian compounding correctly, which matters because Canadian mortgages compound semi-annually by law and produce a slightly different payment for the same quoted rate.
- It reveals how extra principal payments shorten the loan and cut total interest, turning a vague good idea into an actual number of months and dollars saved.
How to use this calculator
- Enter the home price and your down payment. The difference is the loan amount the payment is based on; a larger down payment lowers everything downstream.
- Set the annual interest rate and the term in years (commonly 30, 25, 20, or 15). Shorter terms raise the monthly payment but reduce total interest sharply.
- Choose your country. US mortgages compound monthly; Canadian mortgages are required to compound semi-annually, which slightly changes the effective monthly rate.
- Add optional annual property tax, annual home insurance, and monthly HOA or condo fees to move from a bare loan payment toward a fuller monthly housing cost.
- Optionally add an extra monthly payment, then read the monthly payment, total interest, and payoff timeline, and compare scenarios side by side.
How to read your result
The headline figure is your estimated monthly payment. If you entered taxes, insurance, and HOA, that figure reflects PITI plus fees — the true monthly cost of owning — rather than principal and interest alone. The principal-and-interest portion is what the lender sets; taxes and insurance are pass-through amounts that can rise over time even when your rate is fixed.
Look past the monthly number to the total interest and total cost over the full term. A 30-year loan feels affordable month to month but can cost more in interest than the original loan amount. Comparing that against a shorter term, a larger down payment, or a modest extra payment is where the calculator earns its keep — small changes today compound into large differences over the life of the loan.
- Property tax and insurance are estimates that change over time. Lenders often collect them in an escrow account, so your actual monthly payment can rise even on a fixed-rate loan when tax assessments or premiums go up.
- This tool does not model PMI (US) or mortgage default insurance (Canada). With less than 20% down in the US, expect PMI to be added until you reach roughly 20% equity; in Canada, default insurance is generally required below 20% down and adds to the amount financed.
- The rate you enter is assumed fixed for the whole term. Adjustable-rate and Canadian variable-rate mortgages can change at renewal or adjustment, which this calculator does not simulate.
- Affordability rules of thumb — such as keeping housing costs within roughly 28% of gross monthly income, and total debt within about 36% — are guidelines, not approvals. Lenders use their own ratios and also weigh credit, reserves, and down payment.
- Closing costs, PMI, points, and prepayment terms are not included. The payment shown is a clean estimate, not a lender quote or a Loan Estimate.
- Get a real quoted rate before trusting the payment; a rate a quarter-point off can move the monthly figure and total interest more than most people expect.
- Try 15- and 20-year terms even if you plan on 30 — seeing the interest saved often changes the decision, and you can always choose a longer term for flexibility.
- If you are near 20% down in the US, model both sides of that line, because crossing it can remove PMI and lower your effective monthly cost.
Frequently asked questions
What is PITI, and does this calculator include all of it?
PITI stands for Principal, Interest, Taxes, and Insurance — the four parts commonly bundled into a monthly mortgage payment. This calculator includes all four when you enter property tax and home insurance, and it lets you add HOA or condo fees on top for a fuller monthly housing cost.
Why is the Canadian payment different from the US payment at the same rate?
US mortgages typically compound interest monthly, so the monthly rate is the annual rate divided by 12. Canadian mortgages are legally required to compound semi-annually even though they are paid monthly, which produces a slightly lower effective monthly rate — and usually a slightly lower payment — for the same nominal quoted rate.
How does my down payment change the payment?
A larger down payment reduces the loan amount, which lowers both the monthly principal-and-interest payment and the total interest paid. In the US, reaching 20% down typically lets you avoid PMI; in Canada, going below 20% generally triggers mortgage default insurance that is added to your loan.
Should I choose a 15-year or a 30-year term?
A 15-year term has a higher monthly payment but a lower rate and far less total interest, because you borrow for half as long. A 30-year term keeps the monthly payment lower and preserves cash flow but costs much more in interest overall. This calculator lets you compare both with your own numbers.
What is PMI and does the calculator include it?
Private mortgage insurance (PMI) is a US premium lenders add when your down payment is under 20%, protecting the lender if you default; it is usually removable once you reach about 20% equity. Canada has an equivalent called mortgage default insurance. This calculator does not model either, so add it separately if your down payment is below 20%.
How much home can I afford?
A common rule of thumb keeps total housing costs within roughly 28% of gross monthly income and all debt payments within about 36%, but lenders apply their own ratios and also weigh credit, reserves, and down payment. Use those percentages as a sanity check, not a guarantee of approval.
Sources and review notes
- Consumer Financial Protection Bureau — Explore Interest Rates
- Financial Consumer Agency of Canada — Mortgages
Methodology last checked Jul 14, 2026. Formula implementation is covered by deterministic unit tests. No financial professional review is claimed yet.