How is my mortgage payment calculated?
Your monthly mortgage payment is mostly principal and interest (P&I), set by your loan amount, interest rate, and term. Lenders often collect property taxes, homeowners insurance, and PMI (if your down payment is under 20%) along with P&I and hold them in escrow. Use the calculator below to estimate your full monthly payment and see how much goes to principal versus interest over the life of the loan.
Last updated July 20, 2026Type a loan amount, rate, and term (e.g. "350k at 6.75% for 30 years") and we'll fill the calculator below. This runs entirely in your browser — nothing you type is sent anywhere.
| Principal | The portion of your payment that reduces your loan balance. |
|---|---|
| Interest | The cost of borrowing, calculated on your remaining balance each month. |
| Property taxes (escrow) | Often collected monthly by your lender and paid to your county on your behalf. |
| Homeowners insurance (escrow) | Often collected monthly and paid to your insurer on your behalf. |
| PMI | Private mortgage insurance, typically required when your down payment is under 20% on a conventional loan; it can usually be removed once you reach 20% equity. |
| HOA dues | Paid directly to a homeowners association, if applicable; not collected by most lenders. |
Figures above are the components this calculator can estimate; your actual loan's fees, escrow cushion, and PMI rate depend on your lender and loan program.
How is principal and interest (P&I) calculated?
P&I is calculated with a standard amortizing-loan formula from three inputs: your loan amount, your interest rate, and your loan term. Every payment is the same size for the life of a fixed-rate loan, but the mix shifts over time: early payments are mostly interest, and later payments are mostly principal, because interest is charged each month on whatever balance is still outstanding.
What affects my monthly payment the most?
Loan amount and interest rate have the largest effect on P&I. A larger down payment lowers your loan amount (and can remove PMI at 20% equity on a conventional loan), and a shorter term raises the monthly P&I but lowers total interest paid over the life of the loan. Property taxes and insurance are set locally and by your insurer, not by your lender, so they vary by home and location rather than by loan structure.
Should I include taxes, insurance, and PMI in my estimate?
Yes, if you want a realistic sense of your total monthly housing cost. Many quoted "mortgage payment" figures show P&I only, which understates what you'll actually owe each month once your lender sets up an escrow account for taxes and insurance. This calculator lets you add those, plus PMI and HOA dues, so the total reflects what a monthly mortgage statement typically includes.
What this calculator is not
This tool provides a general estimate for planning purposes. It does not check your credit, verify your income or assets, price a specific loan program, or account for lender fees, discount points, escrow cushions, or local rules that can change your actual payment. It is not a loan offer, a Loan Estimate, or a substitute for a quote from a licensed lender.
FreeRateUpdate connects consumers with lenders in its network, and may be compensated by those lenders. This calculator does not favor or disfavor any lender or loan product, and its math is the same regardless of which lender you ultimately choose.
Disclosure: FreeRateUpdate is compensated by lenders in its network when it refers consumers to them. This calculator's estimates are general information, not advice about your specific situation.
This is general information, not advice about your specific situation.