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Mortgage Calculator

Calculate your monthly mortgage payment, total interest, and see a complete amortization schedule. Plan your home purchase with confidence.

Mortgage Formulas

Monthly Payment

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Total Interest

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Principal Balance

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Loan Term

Loan Details

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Additional Costs (Optional)

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Understanding Your Mortgage Payment

A mortgage is typically the largest financial commitment you'll ever make. Understanding exactly what you'll pay each month—and over the life of the loan—is essential for making a smart home buying decision.

Your total monthly housing payment consists of several components, often called PITI (Principal, Interest, Taxes, Insurance). Our calculator breaks down each element so you know exactly where your money goes.

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Complete Payment View

See principal, interest, taxes, insurance, and PMI all in one place.

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Compare Terms

See how 15-year vs 30-year terms affect your payment and interest.

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Extra Payment Impact

Discover how extra payments reduce interest and payoff time.

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Amortization Schedule

See how each payment is split between principal and interest.

Mortgage Payment Components

Each component of your monthly payment serves a different purpose. Understanding them helps you budget accurately and identify potential savings.

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Principal

The portion of your payment that reduces your loan balance. Early in the loan, this is small but grows over time. By paying extra toward principal, you can significantly reduce total interest and shorten your loan term.

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Interest

The cost of borrowing money, calculated on your remaining balance. In early years, most of your payment goes to interest. On a $300,000 30-year loan at 6.5%, you'll pay nearly $400,000 in interest over the life of the loan.

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Property Taxes

Annual taxes based on your home's assessed value. Rates vary widely by location (0.5% to 2.5%+ of home value). Often collected monthly by the lender and held in escrow.

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Homeowner's Insurance

Required by lenders to protect the property. Costs vary by location, home value, and coverage. Typically $1,000-$3,000 annually. Shop around—rates vary significantly between insurers.

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PMI (Private Mortgage Insurance)

Required when down payment is less than 20%. Typically 0.5% to 1% of loan value annually. Can be removed once you reach 20% equity. Ways to avoid: 20% down, piggyback loans, or lender-paid PMI.

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HOA Fees

For condos and some neighborhoods, covers shared amenities and maintenance. Can range from $100 to $1,000+ monthly. Not part of your mortgage but essential for budgeting.

15-Year vs 30-Year Mortgage

Choosing between a 15-year and 30-year mortgage is one of the biggest decisions in home buying. Each has distinct advantages.

Factor15-Year Mortgage30-Year MortgageDifference
Monthly payment Higher (~40% more) Lower 30-yr more affordable
Interest rate Typically 0.5-0.75% lower Slightly higher 15-yr saves on rate
Total interest (300K @ 6.5%) ~$160,000 ~$383,000 15-yr saves $223K
Equity building Faster Slower 15-yr builds wealth faster
Flexibility Less (higher payment) More (lower payment) 30-yr more flexible
Qualification Harder (higher DTI impact) Easier 30-yr qualifies more buyers

How Extra Payments Save Money

Making extra payments toward your principal is one of the most effective ways to save money on your mortgage and build equity faster.

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$100 Extra Monthly

On a $300,000 30-year loan at 6.5%, adding $100/month saves $62,000 in interest and pays off the loan 5 years early.

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$250 Extra Monthly

Same loan with $250 extra monthly saves $118,000 in interest and pays off nearly 9 years early.

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One Extra Payment Yearly

Making one extra payment per year (or biweekly payments) saves $58,000 and cuts 4+ years off the loan.

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Lump Sum Payments

Applying tax refunds or bonuses to principal has dramatic effects, especially early in the loan when interest costs are highest.

Down Payment Considerations

Your down payment affects not just your monthly payment but also your interest rate, PMI requirements, and negotiating power.

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20% Down (Traditional)

Avoids PMI entirely. On a $350,000 home, that's $70,000. Results in lower monthly payment and often better interest rates. Shows sellers you're a serious, qualified buyer.

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10-19% Down

Requires PMI but keeps more cash available. PMI typically adds $100-$300/month. Can request PMI removal at 20% equity, automatic at 22%.

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3-5% Down (FHA/Conventional)

Makes homeownership accessible sooner but comes with higher monthly costs. FHA loans require PMI for the life of the loan. Consider the true long-term cost.

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0% Down (VA/USDA)

Available to eligible veterans and rural buyers. No PMI on VA loans. Great option if you qualify, but consider building equity through extra payments.

Tips for Getting the Best Mortgage

Small differences in rate and terms can save tens of thousands of dollars over the life of your loan.

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Improve Your Credit Score

A 740+ score gets the best rates. A 100-point improvement can save 0.5%+ on your rate—that's $30,000+ on a typical loan. Pay down credit cards and avoid new credit before applying.

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Shop Multiple Lenders

Get quotes from at least 3-5 lenders including banks, credit unions, and mortgage brokers. Rate differences of 0.25% to 0.5% are common and cost thousands over the loan term.

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Compare APR, Not Just Rate

APR includes fees and gives a truer cost comparison. A lower rate with high fees may cost more than a slightly higher rate with low fees.

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Consider Points

Buying points (prepaid interest) lowers your rate. Each point costs 1% of the loan and typically reduces rate by 0.25%. Worth it if you'll keep the loan 5+ years.

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Lock Your Rate

Once you find a good rate, lock it. Rate locks typically last 30-60 days. Rates can change daily, and an unlocked rate isn't guaranteed.

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Reduce Debt-to-Income

Lenders prefer DTI under 36%, with housing costs under 28% of gross income. Pay off car loans or credit cards before applying to qualify for more home.

Popular mortgage payment scenarios

Quick answers for common loan amounts — each shows the monthly payment at every rate, total interest, and lets you fine-tune the numbers.

30-year fixed

15-year fixed

How to use this mortgage calculator

  1. Enter the Home Price ($) — the agreed purchase price of the property, not the appraisal or list price.
  2. Enter your Down Payment ($) or Down Payment (%) — the other field updates automatically. Aim for 20% to avoid PMI.
  3. Pick a Loan Term (30, 20, 15, or 10 years) and type your Interest Rate (%) — use the lender's APR, not the teaser rate.
  4. Optional: add Annual Property Tax ($), Annual Insurance ($), Monthly HOA ($), and Extra Monthly Payment ($) for a full PITI view.
  5. Click Calculate to see your monthly payment, total interest, payoff date, and a full cost breakdown.

Examples

Basic: 30-year fixed at 20% down

First-time buyer purchasing a $350,000 starter home with a conventional 30-year loan at 6.5%, putting 20% down to avoid PMI.

ResultLoan amount $280,000. Principal & interest about $1,770/month. Total monthly payment about $2,220 with taxes and insurance. Total interest over 30 years: roughly $357,000.

The calculator subtracts the $70,000 down payment from $350,000 to get a $280,000 loan. It plugs that into M = P·r(1+r)^n / ((1+r)^n − 1) with r = 0.065/12 and n = 360 to get the principal-and-interest figure, then adds $350/month in property tax and $100/month in insurance for the full PITI.

Intermediate: 15-year vs 30-year on the same loan

A move-up buyer with $500,000 home price, $100,000 down, and a 6.0% rate. They want to see whether the 15-year term is worth the higher monthly payment.

ResultOn the 15-year loan, principal & interest is about $3,375/month vs about $2,400/month on a 30-year loan at the same rate — about $975 more per month. Total interest: roughly $207,000 on the 15-year vs roughly $464,000 on the 30-year, saving more than $250,000.

Switching the Loan Term button from 30 to 15 keeps the loan amount and rate constant but cuts n from 360 to 180 payments. The higher monthly payment retires principal far faster, so interest accrues on a shrinking balance for half as long. In practice, 15-year rates are often 0.5% lower, so real savings are usually even bigger.

Edge case: low down payment with PMI and extra payments

A buyer puts only 5% down on a $300,000 home at 7.0% over 30 years, but adds $200/month extra toward principal to pay PMI off faster and shorten the loan.

ResultLoan amount $285,000. Base principal & interest about $1,896/month. PMI adds roughly $119/month until equity reaches 20%. With $200 extra each month, the loan pays off about 6 years earlier and saves around $98,000 in interest.

Below 20% down, lenders require PMI, typically 0.5%–1% of the loan amount per year. Here PMI is 0.5% × $285,000 ÷ 12 ≈ $119/month. Every extra $200 goes straight to principal, so the balance falls below 80% of the original price faster — you can then request PMI removal, freeing up that monthly cost too.

How it works

The calculator uses the standard amortization formula M=P⋅r(1+r)n(1+r)n−1M = P \cdot \frac{r(1+r)^n}{(1+r)^n - 1}, where MM is the monthly payment, PP is the loan amount (home price minus down payment), rr is the monthly interest rate (annual rate divided by 12), and nn is the total number of monthly payments (loan term in years ×\times 12). For a $280,000 loan at 6.5% over 30 years, that gives a P&I payment of about $1,770.

Each month, interest is calculated on the remaining balance. Early in the loan, almost all of your payment goes to interest because the balance is high. As principal is paid down, the interest portion shrinks and the principal portion grows — this is why making extra payments early has the biggest long-term impact.

Property taxes, homeowner's insurance, HOA dues, and PMI are added on top of P&I to produce your full monthly housing cost. These do not affect the underlying interest calculation but matter for budgeting and qualification ratios. PMI applies automatically when the down payment is below 20% and can be requested for removal once you reach 20% equity.

Extra monthly payments are applied directly to principal after the scheduled interest is paid. Because future interest is computed on the new, lower balance, even small extras compound into large lifetime savings and shorten the payoff date.

When to use this calculator

  • Comparing loan offers. Run the same loan amount and term with each lender's rate and fees to see the true monthly and lifetime cost. Small APR differences translate to tens of thousands of dollars.
  • Deciding on a down payment. Toggle the down payment percentage to compare PMI cost, monthly payment, and how much cash you keep in reserve for closing costs and emergencies.
  • Picking a loan term. Switch between 30, 20, 15, and 10 years to see how much interest you save with a shorter term and whether the higher payment fits your monthly budget.
  • Testing extra payments. Add an Extra Monthly Payment to see how quickly even $50 or $100 shortens the loan and cuts total interest. Useful before committing to biweekly payment plans.
  • Budgeting for a home search. Work backwards from a comfortable monthly payment to a target home price before you start touring listings, so you avoid falling in love with homes you can't afford.

Common mistakes

  • MistakeComparing rates without comparing APR.
    FixAPR includes origination fees, discount points, and other costs. Two loans with the same nominal rate can have very different APRs — always compare APR-to-APR.
  • MistakeForgetting property tax, insurance, HOA, and PMI when budgeting.
    FixUse the full PITI view in this calculator. The principal & interest figure alone often understates the real monthly cost by 25%–35%.
  • MistakeUsing the home's list price instead of the contract price.
    FixEnter the actual agreed-upon purchase price. Negotiated reductions, seller credits, and rebates can change the loan amount materially.
  • MistakeAssuming PMI disappears automatically the moment you reach 20% equity.
    FixUnder federal rules, lenders must auto-cancel at 22% equity based on the original schedule. To remove it at 20%, you usually have to request it in writing and may need a new appraisal.
  • MistakeTreating the down payment as the only upfront cost.
    FixPlan for 2%–5% of the purchase price in closing costs on top of the down payment — title, appraisal, lender fees, and prepaid taxes and insurance.

Frequently asked questions

How much house can I afford?

A common guideline is that your total housing payment (PITI) shouldn't exceed 28% of your gross monthly income, and total debt payments shouldn't exceed 36%. For a $75,000 income, that's about $1,750/month for housing, suggesting a home price around $250,000-$300,000 depending on your down payment and local taxes.

What is PMI and how do I get rid of it?

PMI (Private Mortgage Insurance) protects the lender if you default. It's required with less than 20% down. You can request removal at 20% equity (based on original value or new appraisal). It's automatically removed at 22% equity. Refinancing is another option once you have sufficient equity.

Should I pay points to lower my rate?

It depends on how long you'll keep the loan. Calculate the breakeven point: if a point costs $3,000 and saves $50/month, you break even in 60 months (5 years). If you plan to stay longer, points make sense. If you might move or refinance sooner, skip them.

What credit score do I need for a mortgage?

Minimum scores: FHA loans typically require 580+ (or 500 with 10% down), conventional loans need 620+, but the best rates require 740+. Each 20-point improvement can save 0.125% to 0.25% on your rate.

Are biweekly payments worth it?

Yes! By paying half your monthly payment every two weeks, you make 26 half-payments (13 full payments) instead of 12. This extra payment goes to principal, saving thousands in interest and paying off a 30-year loan about 4 years early.

Should I get a fixed or adjustable rate mortgage?

Fixed rates offer predictability—your payment never changes. Adjustable rates (ARMs) start lower but can increase. ARMs make sense if you'll sell or refinance before the rate adjusts (typically 5-7 years). In a rising rate environment, fixed rates offer protection.

How does property tax affect my payment?

Property taxes are typically 0.5% to 2.5% of your home's value annually. On a $350,000 home at 1.2%, that's $4,200/year or $350/month added to your mortgage payment. Taxes vary widely by location and can change over time.

What is the difference between interest rate and APR?

The interest rate is the cost of borrowing the principal. APR also includes lender fees, discount points, and certain closing costs expressed as an annual percentage. APR is the better number for comparing offers because it captures the full cost of the loan, not just the headline rate.

Is mortgage interest still tax deductible?

For loans originated after December 15, 2017, you can deduct interest on up to $750,000 of acquisition debt ($375,000 if married filing separately) on a primary or second home, but only if you itemize. With today's higher standard deduction, many homeowners no longer itemize. Confirm with the latest IRS Publication 936 or a tax professional.

Does the calculator account for escrow?

Effectively, yes. When you enter Annual Property Tax and Annual Insurance, the calculator divides each by 12 and adds them to your monthly payment — the same way a lender-collected escrow account works. The underlying loan math is unchanged; you're just seeing the full out-of-pocket figure.

Can I trust the payoff date if I make extra payments?

The payoff date assumes you make the scheduled payment plus the extra amount every month, on time, with no rate changes. Real life includes prepayments, refinances, recasts, and missed months, so treat the date as a planning estimate. For an exact figure, ask your servicer for an up-to-date amortization schedule.

Why does my monthly payment go up after closing?

The most common reason is an escrow adjustment. If property taxes or insurance premiums rise, your servicer recalculates the escrow portion and raises your monthly payment to cover the shortfall. The principal-and-interest portion of a fixed-rate loan never changes.

Sources

Methodology

This calculator applies the standard amortization formula M = P·r(1+r)^n / ((1+r)^n − 1), where M is the monthly payment, P is the loan amount (home price minus down payment), r is the monthly interest rate (annual rate ÷ 12), and n is the total number of monthly payments. PMI is applied when the down payment is below 20%; property tax, insurance, and HOA are added to the monthly payment for the PITI view but are excluded from the interest calculation.

Learn more about our methodology →

Pro Tips

  • Bookmark this calculator for quick access in the future
  • Use the share button to send your results to others
  • Try different scenarios to compare outcomes
  • Check out our related calculators for more insights

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