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Calculates

Mortgage Calculator

Calculate your complete monthly housing payment and explore your repayment schedule.

Calculated & verified for mathematical accuracy·Reviewed by the Calculates Editorial Team

Property & Loan

1,000 – 1,00,00,00,000
Down payment type
0 – 100

Equals: ₹10,00,000

0 – 30
1 – 40

Total duration: 20 yr (240 payments)

Tenure unit

Taxes, Insurance & Fees

Monthly tax: ₹5,000

Monthly insurance: ₹2,000

PMI is inactive (Down payment >= 20%)

Total Monthly Payment

₹41,224

Includes Principal & Interest, Taxes, Insurance, and HOA.

Loan Amount
₹40,00,000
Principal + Interest
₹32,224
Monthly Taxes
₹5,000
Monthly Insurance
₹2,000
Monthly PMI
₹0
Monthly HOA
₹2,000
Total Interest
₹37,33,694
Total Payments
₹98,93,694
  • Principal₹40,00,000
  • Interest₹37,33,694
  • Taxes₹12,00,000
  • Insurance & HOA₹9,60,000

About this calculator

A mortgage calculator helps you determine your total monthly housing costs, including principal, interest, taxes, insurance, and HOA fees. Understanding your complete monthly outgo allows you to budget realistically and choose the right loan term and down payment strategy for your situation.

How to use this calculator

  1. Enter the home price and down payment

    Input the purchase price of the home. Adjust your down payment as an absolute cash value or as a percentage. Paying at least 20% down typically avoids Private Mortgage Insurance (PMI).

  2. Set the interest rate and loan term

    Input the interest rate quoted by your lender. Choose your loan duration—typically 15 or 30 years. A shorter term saves on lifetime interest but increases the monthly installment.

  3. Include property taxes and insurance

    Input local annual property tax rates (often 0.5% to 2% of home value) and your expected annual home insurance premium to calculate your escrow payment accurately.

  4. Review the total monthly breakdown

    Examine the comprehensive monthly payment breakdown. Explore the amortization schedule to see how your loan balance reduces over the years.

Formula

P = L × [ r(1 + r)ⁿ ] ÷ [ (1 + r)ⁿ − 1 ]
  • P is the monthly principal and interest payment.
  • L is the loan principal (home purchase price minus down payment).
  • r is the monthly interest rate (annual interest rate divided by 12, then by 100).
  • n is the total number of payments (loan term in years multiplied by 12).
  • Total monthly cost includes P plus monthly property tax, monthly homeowners insurance, monthly HOA fees, and PMI (if applicable).

Worked example

Inputs

  • Home price: ₹3,00,000 (or $300,000)
  • Down payment: 20% (₹60,000)
  • Interest rate: 4% per year
  • Term: 30 years (360 payments)
  • Taxes: 1.2% annual
  • Insurance: ₹1,200 annual
  • HOA: ₹150 monthly

Calculation

L = 300000 - 60000 = 240000 r = 4 / 12 / 100 = 0.0033333 n = 30 * 12 = 360 Monthly Principal & Interest (P): P = 240000 * [ 0.0033333 * (1.0033333)³⁶⁰ ] / [ (1.0033333)³⁶⁰ - 1 ] = 240000 * [ 0.0033333 * 3.313498 ] / [ 3.313498 - 1 ] = 1145.80 Taxes = (300000 * 1.2%) / 12 = 300.00 Insurance = 1200 / 12 = 100.00 PMI = 0.00 (Down payment >= 20%) HOA = 150.00 Total Monthly = 1145.80 + 300.00 + 100.00 + 150.00 = 1695.80

Your monthly mortgage payment is ₹1,695.80. Over 30 years, you pay ₹4,12,488 in principal and interest, plus ₹1,44,000 in escrow taxes and insurance.

What the result means

  • Monthly Principal and Interest is the base payment that goes towards paying off your debt. Early payments are mostly interest, while later ones are mostly principal.
  • Property Tax and Home Insurance are recurring annual costs typically held in an escrow account and divided into monthly payments by your lender.
  • Private Mortgage Insurance (PMI) is an extra monthly fee charged to protect the lender if your down payment is less than 20% of the purchase price.
  • The Amortization Table tracks how every payment is allocated. It shows your equity growing month by month and year by year.

Related calculations

  • Compare 15-year and 30-year terms side-by-side to evaluate the trade-off between higher monthly outgo and lower total interest expense.
  • Adjust down payment values to find the exact threshold where Private Mortgage Insurance (PMI) is eliminated.
  • Run the calculations with a 1% higher interest rate to test the impact of floating rate changes or alternative lender quotes.

Frequently asked questions

What is included in a monthly mortgage payment?

A comprehensive monthly mortgage payment is often referred to as PITI (Principal, Interest, Taxes, and Insurance). It includes the repayment of the borrowed loan amount (principal), the interest fee charged by the lender, local annual property taxes, and homeowners hazard insurance. It may also include Private Mortgage Insurance (PMI) and Monthly Homeowners Association (HOA) fees depending on your property and down payment size.

Why does my mortgage require Private Mortgage Insurance (PMI)?

Lenders typically require Private Mortgage Insurance (PMI) when you purchase a home with a down payment that is less than 20% of the total home value. PMI protects the lender against loss if you default on your loan payments. It is an added monthly cost that does not go towards your principal balance and can usually be canceled once your loan-to-value (LTV) ratio drops below 80%.

Is a 15-year or 30-year mortgage better?

A 15-year mortgage offers a lower interest rate and allows you to pay off your home twice as fast, saving you tens of thousands in lifetime interest expense. However, it requires a significantly higher monthly payment. A 30-year mortgage provides maximum flexibility with lower monthly payments, but you pay a higher interest rate and accumulate interest over a much longer period.

Can I make extra payments to reduce my mortgage interest?

Yes, most mortgages allow you to make extra principal prepayments without penalty. By paying more than your scheduled monthly principal amount, you directly reduce the outstanding loan balance. This stops future interest from accruing on that portion of the debt, allowing you to pay off your home years ahead of schedule and save substantial interest.

How do property taxes affect my monthly home payment?

Property taxes are assessed annually by your local municipal or county government as a percentage of your home’s assessed value. Lenders typically collect 1/12th of this tax bill each month alongside your principal and interest payment, holding it in an escrow account, and paying the local government on your behalf. A high local tax rate can significantly increase your required monthly budget.

What is an amortization schedule?

An amortization schedule is a complete chronological table showing each scheduled mortgage payment. It details how much of every installment goes towards interest (which declines over time as your balance shrinks) versus principal (which increases over time). It also tracks your outstanding loan balance after every payment, showing it reach exactly zero at the end of the term.

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