Mortgage Calculator

Use BKV Energy’s free mortgage calculator to estimate your monthly mortgage payments, annual mortgage payments, total interest paid, total tax paid, and total payments.

How to calculate your payments with a mortgage calculator

Here's how to use BKV Energy's free mortgage calculator to easily estimate monthly, annual, and total payments:

Enter in the price of your home
Enter in your down payment with either a percentage of the home value, or a specific dollar amount
Enter in your loan interest rate
Enter in the term of your loan in years
Enter in your annual property tax
Enter in your PMI percentage
Enter in your annual home insurance cost
Select a starting month and year for your mortgage
Click "Calculate Mortgage" - it's that easy!

Typical costs included in a mortgage

Principal: The portion of your payment that goes toward paying down the original loan amount you borrowed.
Interest: The cost of borrowing money from the lender, calculated as a percentage of your remaining loan balance.
Down Payment: The upfront cash you pay at closing, usually expressed as a percentage of the home’s purchase price (e.g., 5%, 10%, or 20%). A larger down payment reduces the amount you need to borrow.
Closing Costs: One-time fees due at the time of purchase, which can include appraisal fees, title insurance, loan origination fees, and other administrative costs.
Property Taxes: Ongoing taxes assessed by your local government based on the value of your home, typically collected monthly as part of your mortgage payment and held in escrow.
Homeowners Insurance: A required policy that protects your home and belongings against risks like fire, theft, or certain natural disasters. Lenders usually require you to include this premium in your monthly mortgage payment.
Mortgage Insurance (PMI or MIP): An extra monthly cost required if your down payment is less than 20% (for conventional loans) or if you’re using certain government-backed loan programs. It protects the lender if you default on the loan.

How to calculate a mortgage payment - mortgage payment formula

A standard mortgage payment is calculated using this formula:

M = P × [ r(1 + r)^n ] / [ (1 + r)^n – 1 ]

Where:

M: Your monthly mortgage payment (principal + interest)
P: The loan principal, or the amount you borrowed after your down payment
r: The monthly interest rate (annual rate ÷ 12)
n: The total number of payments over the life of the loan (loan term in years × 12 months)

Now let's break it down in plain English...

Start with the loan amount (after subtracting your down payment)
Divide your annual interest rate by 12 to get the monthly rate
Multiply your loan term (in years) by 12 to get the number of monthly payments
Plug those numbers into the formula above to calculate the base monthly payment
Then add in property taxes, homeowners insurance, and mortgage insurance (if applicable) to estimate your total monthly payment

Buying a home in Texas?

If you’re in the process of buying a home, chances are you’ll also need to choose an electricity provider.

At BKV Energy, we believe powering your home should be simple, transparent, and affordable, without the gimmicks or hidden fees you’ll find with many providers.

Our Bluebonnet plan is built with Texans in mind, offering competitive rates plus unique benefits like Reduce Your Rate (lock in a lower rate mid-contract when prices drop) and ElectroShare (annual loyalty rewards back in your pocket).

When you’re calculating your mortgage, don’t forget your electricity costs! Switch to the Bluebonnet plan from BKV Energy and enjoy peace of mind knowing your home is powered by fairness and simplicity.

Written by Graham Lumley

Graham Lumley is the Growth Product Manager at BKV Energy, a retail electricity provider in Texas' deregulated market, where he has worked since 2023. He analyzes customer usage and billing data, helps develop BKV's fixed-rate plans, and creates tools to simplify Texas electricity shopping. He has written over 200 articles on Texas electricity rates, delivery charges, plan types, energy generation, and more to help Texans understand their bills and pay less. With over 10 years of experience in consumer products, marketing, and energy, he explains the Texas electricity market in plain language.