Mortgage Calculator
Estimate your monthly mortgage payment with a detailed breakdown of principal, interest, taxes, insurance, and PMI.
How to Use Our Mortgage Calculator
Our free mortgage calculator helps you estimate your monthly house payment before you even step foot in a bank. Simply enter your home price, down payment, loan term, and interest rate to get an instant breakdown of your monthly costs including principal, interest, property taxes, homeowners insurance, and private mortgage insurance (PMI) if applicable.
The results update in real time as you adjust the sliders and inputs, giving you the power to explore dozens of scenarios in seconds. Whether you're a first-time homebuyer trying to figure out what you can afford or a seasoned homeowner considering a move, this tool puts the numbers at your fingertips.
Understanding Your Mortgage Payment
A mortgage payment is made up of several components, often referred to by the acronym PITI: Principal, Interest, Taxes, and Insurance. Here's what each piece means:
- Principal — The portion of your payment that reduces your loan balance. Early in the loan, this is a small fraction of your payment, but it grows over time as interest charges decline.
- Interest — The cost your lender charges for borrowing money. Interest is calculated on the remaining balance, so you pay the most interest in the first years of a mortgage.
- Property Taxes — Local governments levy taxes based on your home's assessed value. Rates vary significantly by location, ranging from about 0.3% in Hawaii to over 2% in New Jersey and Illinois.
- Homeowners Insurance — Protects you financially if your home is damaged or destroyed. Lenders require it as long as you have a mortgage.
- PMI (Private Mortgage Insurance) — If your down payment is less than 20%, most conventional lenders require PMI. This protects the lender — not you — in case of default. PMI typically costs between 0.5% and 1% of the loan amount per year and can be removed once your equity reaches 20%.
How Interest Rates Affect Your Payment
Even small changes in interest rates have a significant impact on your total cost. On a $300,000 loan over 30 years, the difference between a 6% rate and a 7% rate adds up to more than $70,000 in additional interest. That's why it pays to shop around for the best mortgage rate. Get quotes from at least three lenders and consider both fixed-rate and adjustable-rate mortgages to find the best fit for your situation.
Choosing the Right Loan Term
The most common mortgage terms are 15 and 30 years. A 30-year mortgage gives you lower monthly payments, making it easier to manage your monthly budget. A 15-year mortgage has higher payments but saves you a tremendous amount of interest — often hundreds of thousands of dollars over the life of the loan. Some lenders also offer 20-year and 25-year terms as a middle ground.
Tips for First-Time Homebuyers
Getting a mortgage for the first time can feel overwhelming, but preparation makes all the difference. Start by checking your credit score — a score above 740 typically qualifies you for the best rates. Save as much as you can for a down payment; 20% avoids PMI entirely, but many programs allow as little as 3% down. Don't forget closing costs, which usually run 2-5% of the purchase price. Use our calculator to experiment with different price points until you find a comfortable monthly payment that leaves room in your budget for maintenance, utilities, and unexpected repairs.
Frequently Asked Questions
Monthly principal and interest is calculated using the standard amortization formula: M = P × [r(1+r)^n] / [(1+r)^n − 1], where P is the loan principal, r is the monthly interest rate, and n is the total number of payments. Property taxes, insurance, and PMI are then added on top.
PMI (Private Mortgage Insurance) is required when your down payment is less than 20% of the home's purchase price. It protects the lender in case you default. You can avoid PMI by putting 20% or more down. Once your equity reaches 20%, you can request PMI removal from your lender.
A 15-year mortgage has higher monthly payments but significantly less total interest. A 30-year mortgage is more affordable month-to-month but costs more overall. Choose 15 years if you can comfortably afford the payments; choose 30 if you need flexibility in your budget or plan to invest the difference.
While 20% is ideal to avoid PMI, many programs allow 3-10% down. FHA loans require just 3.5%, and VA/USDA loans may require no down payment at all. However, a larger down payment means a lower loan amount, lower monthly payment, and less interest over time.
Yes! Our calculator includes property taxes (based on the tax rate you enter), homeowners insurance, and PMI if applicable. The total monthly payment shown is your full PITI payment — not just principal and interest.
This calculator is for educational purposes only. Results are estimates and should not be considered financial advice. Actual payments may vary based on lender terms, credit score, and other factors. Consult a qualified financial advisor or mortgage professional for personalized guidance.