Mortgage Calculator
Estimate your monthly mortgage payment including taxes, insurance, and PMI
The total purchase price of the home
Enter as a percentage or dollar amount. 20% or more avoids PMI.
Shorter terms have higher payments but less total interest
Annual interest rate from your lender
When your first mortgage payment will be due
Additional Monthly Costs
Annual property tax amount for the home
Annual homeowners insurance premium
Annual PMI rate (applies if down payment < 20%)
Monthly homeowners association fees, if applicable
Additional amount applied to principal each month to pay off faster
Estimate Your Mortgage
Enter the home price and interest rate to see your estimated monthly payment and full cost breakdown.
How to Use the Mortgage Calculator
Enter the Home Price
Type in the total purchase price of the home you are considering. This is the listing price or your offer amount.
Set Your Down Payment
Choose whether to enter your down payment as a percentage or dollar amount. A 20% down payment avoids private mortgage insurance (PMI).
Choose Loan Term and Rate
Select your loan term (15, 20, 25, or 30 years) and enter the annual interest rate quoted by your lender.
Add Taxes, Insurance, and Fees
Enter annual property tax, homeowners insurance, PMI rate (if applicable), and monthly HOA fees to see your true total monthly payment.
Frequently Asked Questions
How is the monthly mortgage payment calculated?
The monthly principal and interest payment is calculated using the standard amortization formula: M = P[r(1+r)^n] / [(1+r)^n - 1], where P is the loan amount, r is the monthly interest rate (annual rate divided by 12), and n is the total number of monthly payments. For example, a $280,000 loan at 6.5% for 30 years gives a monthly principal and interest payment of approximately $1,770. Property taxes, insurance, PMI, and HOA fees are then added on top to determine your total monthly housing cost.
What is PMI and how can I avoid it?
Private Mortgage Insurance (PMI) is a type of insurance that protects the lender if you default on your mortgage. It is required when your down payment is less than 20% of the home price, meaning your loan-to-value ratio exceeds 80%. PMI typically costs between 0.3% and 1.5% of the original loan amount per year, which can add $70 to $350 per month on a $280,000 loan. To avoid PMI, you can make a down payment of 20% or more, use a piggyback loan, or choose a lender that offers lender-paid PMI built into the interest rate.
Should I choose a 15-year or 30-year mortgage?
The best choice depends on your financial situation and goals. A 30-year mortgage offers lower monthly payments, giving you more flexibility in your monthly budget. A 15-year mortgage has higher monthly payments but a lower interest rate and dramatically less total interest paid. For a $280,000 loan at 6.5%, a 30-year mortgage costs about $1,770 per month with $357,000 in total interest. A 15-year mortgage at 5.9% costs about $2,356 per month but only $144,000 in total interest, saving over $213,000. Choose 15 years if you can comfortably afford the higher payment.
What is an amortization schedule?
An amortization schedule is a table showing every payment over the life of your loan, broken down into principal and interest portions. In the early years of a mortgage, most of each payment goes toward interest. Over time, the interest portion decreases and the principal portion increases. For example, on a 30-year $280,000 loan at 6.5%, your first year's payments allocate about $18,100 to interest and only $3,100 to principal. By year 25, those numbers flip to about $5,600 in interest and $15,600 in principal. The schedule helps you understand your equity buildup over time.
How much house can I afford?
Most financial advisors recommend that your total monthly housing payment (including principal, interest, taxes, insurance, PMI, and HOA) should not exceed 28% of your gross monthly income. This is known as the front-end ratio. Additionally, your total monthly debt payments (housing plus car loans, student loans, credit cards) should not exceed 36% of your gross income, called the back-end ratio. For example, with a $6,000 gross monthly income, your total housing payment should stay under $1,680. Use this calculator to experiment with different home prices until you find a comfortable monthly payment.
What are biweekly mortgage payments and how do they save money?
Biweekly mortgage payments involve paying half your monthly payment every two weeks instead of making one full payment per month. Because there are 52 weeks in a year, you make 26 half-payments, which equals 13 full monthly payments instead of the standard 12. That one extra payment per year goes entirely toward your principal, reducing the loan balance faster. On a $280,000 loan at 6.5% for 30 years, switching to biweekly payments can save approximately $60,000 in interest and pay off your mortgage about 5 years early. Most lenders offer biweekly payment programs, or you can achieve the same effect by adding 1/12 of your monthly payment as extra principal each month.