Mortgage Calculator
Calculate your monthly mortgage payment including principal, interest, property taxes, homeowners insurance, and PMI. Get a complete PITI breakdown, view your full amortization schedule, and compare different loan terms — all free, with no signup required.
Mortgage Details
Enter your basic mortgage information
Total price of the home
Initial payment amount or percentage of home price
Annual interest rate
Length of the loan in years
Advanced Options
Additional costs and settings
Mortgage Summary
Key details about your mortgage
Monthly Payment Breakdown
See how different costs contribute to your monthly payment
Amortization Schedule
See how your loan balance changes over time
Amortization Schedule
Detailed view of all payments
| Month | Payment | Principal | Interest | Remaining Balance | Total Monthly Cost |
|---|
How to Use This Mortgage Calculator
Step-by-Step Guide
Follow these steps to calculate your mortgage payment
Enter the Home Price
Input the total purchase price of the property you're considering. If you're unsure, start with the median home price in your target area and adjust from there.
Set Your Down Payment
Enter either a dollar amount or percentage. Putting down 20% or more eliminates PMI, but many programs allow 3-5% down. Our calculator automatically adjusts PMI based on your down payment.
Choose Your Interest Rate and Term
Enter the annual interest rate from your lender quote. Select a 15-year or 30-year term — shorter terms have higher payments but much less total interest. Try both to compare.
Review Your Results
See your total monthly payment with a PITI breakdown, view the amortization schedule to understand how your payments are applied over time, and use the pie chart to visualize cost distribution.
What's Included in Your Payment (PITI)
Understanding every component of your monthly mortgage payment
Principal
The portion of your payment that reduces your loan balance. Early in your mortgage, very little goes toward principal — most goes to interest. Over time, this ratio shifts in your favor as the loan amortizes.
Interest
The cost of borrowing money, calculated as a percentage of your remaining balance. On a 30-year mortgage, you may pay more in total interest than the original loan amount. This is why shorter terms save so much.
Property Taxes
Local property taxes are typically escrowed and paid through your monthly mortgage payment. Rates vary widely by location — from under 0.5% in some states to over 2% in others. Our calculator defaults to the national average of 1.1%.
Homeowners Insurance
Required by lenders to protect against damage, theft, and liability. The average annual premium is $1,200-$2,000, though this varies significantly by location, home value, and coverage level.
PMI (Private Mortgage Insurance)
Required when your down payment is less than 20%. PMI costs 0.3% to 1.5% of the loan amount per year and can be removed once you reach 20% equity. This is a significant cost that makes reaching the 20% down payment threshold worthwhile.
Understanding How Mortgages Work
A mortgage is a loan used to purchase real estate, where the property itself serves as collateral. The borrower agrees to repay the loan over a set period (the "term"), typically 15 or 30 years, with fixed or adjustable interest rates. Understanding how mortgages work is essential to making one of the largest financial decisions of your life.
The Mortgage Payment Formula
Monthly mortgage payments are calculated using the standard amortization formula: M = P × [r(1+r)^n] / [(1+r)^n - 1], where M is the monthly payment, P is the principal (loan amount), r is the monthly interest rate (annual rate divided by 12), and n is the total number of payments (term in years × 12). For example, a $300,000 loan at 6.5% for 30 years results in a monthly P&I payment of $1,896.20.
How Amortization Works
Amortization is the process of gradually paying off a loan through scheduled payments. Each payment covers both interest and principal, but the split changes over time. In the early years of a 30-year mortgage, roughly 70-80% of each payment goes toward interest. By the final years, nearly all of each payment goes toward principal. This "front-loading" of interest is why making extra payments early in the loan has such a dramatic effect on total interest paid.
Fixed-Rate vs Adjustable-Rate Mortgages
Fixed-rate mortgages lock in one interest rate for the entire loan term, giving you predictable monthly payments regardless of market changes. Adjustable-rate mortgages (ARMs) offer a lower initial rate for a set period (commonly 5, 7, or 10 years), after which the rate adjusts periodically based on a market index. ARMs include rate caps that limit how much the rate can increase per adjustment period and over the life of the loan. A 5/1 ARM, for example, has a fixed rate for 5 years, then adjusts annually.
Mortgage Types and Programs
Several mortgage types serve different needs. Conventional loans require higher credit scores (typically 620+) and usually need 5-20% down. FHA loans are backed by the Federal Housing Administration and allow down payments as low as 3.5% with credit scores of 580+. VA loans offer 0% down payment to eligible veterans and service members with no PMI requirement. USDA loans provide 0% down payment options for rural and suburban homebuyers who meet income limits.
Mortgage Tips and Strategies
Before You Buy
- •Get pre-approved before house hunting. Pre-approval tells you exactly how much you can borrow and shows sellers you're a serious buyer. It's different from pre-qualification, which is just an estimate.
- •Save for 20% down to eliminate PMI, which adds $100-$300+ to your monthly payment on most loans. If you can't reach 20%, FHA loans allow 3.5% down.
- •Check your credit score at least 6 months before applying. A score above 740 gets you the best rates. Even a 0.5% rate difference can save tens of thousands over the loan's life.
- •Compare at least 3 lenders. Rates and fees vary significantly between lenders. Getting multiple quotes can save you thousands — the Consumer Financial Protection Bureau recommends comparing Loan Estimates side by side.
- •Budget for closing costs (2-5% of the home price) on top of your down payment. This includes appraisal fees, title insurance, origination fees, and prepaid taxes and insurance.
Saving Money on Your Mortgage
- •Make bi-weekly payments instead of monthly. This results in 26 half-payments (13 full payments) per year instead of 12, shaving years off a 30-year mortgage and saving thousands in interest.
- •Round up your payment. Even rounding from $1,896 to $2,000 per month can cut years off your loan term. The extra goes directly to principal reduction.
- •Consider a 15-year term if you can afford the higher payment. You'll get a lower rate and pay less than half the total interest of a 30-year loan.
- •Monitor refinance opportunities. If rates drop 0.75-1% or more below your current rate, refinancing can save significant money. Use our Refinance Calculator to check the break-even point.
- •Challenge your property tax assessment if you believe your home is over-assessed. A successful appeal can save hundreds per year on the tax portion of your PITI payment.
Frequently Asked Questions
What is PITI in mortgage payments?
PITI stands for Principal, Interest, Taxes, and Insurance — the four components that make up your total monthly mortgage payment. Principal reduces your loan balance, interest is the cost of borrowing, taxes cover property taxes escrowed monthly, and insurance includes homeowners insurance and PMI if applicable. Lenders use your total PITI payment to calculate your debt-to-income ratio when qualifying you for a mortgage.
How does the down payment affect my monthly mortgage payment?
A larger down payment directly reduces your loan amount, which lowers both your monthly payment and the total interest you pay over the life of the loan. Additionally, putting down 20% or more eliminates the requirement for Private Mortgage Insurance (PMI), which typically costs 0.3% to 1.5% of the original loan amount per year. For example, on a $400,000 home, increasing your down payment from 10% to 20% could save you $200-$500 per month in combined lower payment and PMI elimination.
What's the difference between a 15-year and 30-year mortgage?
A 15-year mortgage has higher monthly payments (typically 40-50% more) but offers significantly lower interest rates (usually 0.5-0.75% less) and dramatically less total interest paid. For example, on a $300,000 loan at current rates, a 15-year mortgage might cost $2,100/month but save you over $150,000 in total interest compared to a 30-year mortgage at $1,500/month. The 30-year term offers lower monthly payments and more financial flexibility, while the 15-year builds equity faster.
How accurate is this mortgage calculator?
Our mortgage calculator uses the same standard amortization formulas that lenders use, so the principal and interest calculations are highly accurate. Property tax and insurance estimates are based on national averages and may vary by location. Your actual mortgage rate will depend on your credit score, down payment, loan type, and current market conditions. For the most accurate quote, use this calculator to estimate your budget, then get pre-approved with a lender.
What is PMI and when can I remove it?
Private Mortgage Insurance (PMI) is required by lenders when your down payment is less than 20% of the home price. PMI protects the lender (not you) if you default on the loan. The cost ranges from 0.3% to 1.5% of the loan amount annually. You can request PMI removal once your loan-to-value ratio reaches 80% through payments or home appreciation. By law, your lender must automatically cancel PMI when your balance drops to 78% of the original purchase price.
Should I choose a fixed-rate or adjustable-rate mortgage (ARM)?
Fixed-rate mortgages keep the same interest rate for the entire loan term, providing predictable monthly payments. Adjustable-rate mortgages (ARMs) start with a lower rate for an initial period (typically 5, 7, or 10 years), then adjust periodically based on market rates. Choose fixed-rate if you plan to stay long-term and want payment stability. Consider an ARM if you plan to sell or refinance within the initial fixed period, or if current fixed rates are high and you expect rates to drop.
How much house can I afford based on my income?
Most lenders follow the 28/36 rule: your monthly housing payment (PITI) should not exceed 28% of your gross monthly income, and your total monthly debt payments should stay below 36%. For example, with a $6,000 gross monthly income, aim for a housing payment under $1,680. However, some loan programs (FHA, VA) allow higher ratios. Use our Home Affordability Calculator for a detailed analysis based on your specific income, debts, and down payment.
What additional costs should I budget for beyond the mortgage payment?
Beyond your PITI payment, budget for closing costs (2-5% of the home price), home maintenance (1-2% of home value annually), HOA fees if applicable, utilities, and potential repairs. Many first-time buyers underestimate maintenance costs — things like HVAC replacement ($5,000-$10,000), roof repairs ($5,000-$15,000), and appliance replacements add up. A good rule of thumb is to save an additional $200-$400 per month for maintenance and unexpected repairs.
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