Monthly mortgage payment calculator

By Allstate

Last updated: January 2024

This monthly mortgage payment calculator helps you determine how much your monthly mortgage payments could be. It factors in major variables, including the loan amount, term (length of the loan) and interest rate. Additional factors that may affect the outcome are the appraised value of the home, property taxes and home insurance costs.

Your lender may also require you to pay private mortgage insurance (PMI) if your down payment is less than 20% of the home’s purchase price, according to Consumer Financial Protection Bureau (CFPB). This is designed to protect your lender if you fail to make payments.

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How to use the monthly mortgage payment calculator

To use the mortgage payment calculator, fill out the information of your loan on the left-hand side of the screen, including:

  • The purchase price of the home
  • The down payment
  • The term of the loan
  • Your interest rate

Under the “Advanced” section, you can also enter your property tax and homeowners insurance for a more accurate estimate.

Once filled out on the right-hand side of the screen, you’ll see your total payment amount in green text. Under this readout, you’ll see three tabs: “Breakdown, “Over Time and “Amortization.”

The “Breakdown” tab outlines what you pay in principal and interest, taxes and insurance and PMI (if applicable).

The “Over Time” tabs shows your interest and principal payments over the term of your mortgage.

The “Amortization” tab displays your monthly payment amounts over time. Amortization is just a fancy word for monthly payments towards a debt, according to Bankrate.

Purchase price

This refers to the overall cost of the home you intend to buy. This is the final price that you and the seller agree to.

Down payment

The down payment represents the initial payment made toward the purchase of the home. As mentioned before, making a down payment of less than 20% might prompt lenders to require PMI.

Term (years)

The term signifies the length of the loan. Opting for shorter terms, like 15 years, often results in higher monthly payments but reduced overall interest expenses compared to longer terms, such as 30 years, says Bankrate.

Interest rate

The interest rate is the annual cost of borrowing money from the lender, expressed as a percentage of the loan amount.

How mortgage interest works

Mortgage interest is computed based on the remaining loan balance and the annual interest rate, explains the CFPB. Fixed-rate mortgages maintain a steady interest rate, whereas adjustable-rate mortgages (ARMs) have rates that may change.

Fixed rate

Fixed-rate mortgages offer stability with a consistent interest rate throughout the loan term, according to USA Today. They can provide assurance but may come with initially higher rates compared to ARMs.


Adjustable-rate mortgages entail interest rates that fluctuate based on market conditions, says Charles Schwab. While they might offer lower initial rates, they bring potential variability in monthly payments.

Credit score

A credit score significantly influences the interest rate. Higher credit scores generally result in lower interest rates due to reduced perceived risk for lenders.

Other costs when buying a home

Apart from the mortgage payments, other expenses need consideration. These include moving costs, homeowners insurance, property taxes and potential renovation costs post-purchase.

Planning for a new mortgage

Preparing for a mortgage should involve taking stock of your financial situation. Determine the health of your credit, the amount you can use toward a down payment and how much you want to spend on a new home. Once you have some understanding of those things, create a loan application packet and pursue pre-approval for a mortgage, advises the CFPB.

Extra mortgage principal payments

Some financial institutions may allow you to allocate extra mortgage payments towards the principle of your mortgage. This can result in shortening the term of the loan and the total amount of interest that you will pay. For an example, you might use an extra mortgage payment calculator to better understand how different payment amounts can impact your overall loan. But always double check your loan agreement for the specific process for allocating an extra payment to your principal, explains

Monthly mortgage FAQs