Mortgage Calculator - Free Online Tool

Estimate your monthly mortgage payment including taxes, insurance, and PMI

Welcome to our free Mortgage Calculator, the most comprehensive tool for estimating your monthly mortgage payment and understanding the true cost of homeownership. Whether you are buying your first home, refinancing an existing mortgage, or comparing loan options, this calculator gives you a complete picture of your housing costs. Buying a home is one of the biggest financial decisions you will ever make. A mortgage payment is more than just principal and interest - it includes property taxes, homeowners insurance, private mortgage insurance (PMI) if your down payment is less than 20%, and possibly HOA fees. Our calculator accounts for all of these costs so you can budget accurately. The calculator uses the standard amortization formula to compute your monthly principal and interest payment. It then adds in monthly amounts for property taxes, insurance, PMI, and HOA fees to give you the true total monthly payment. You can toggle an amortization schedule to see a year-by-year breakdown of how much goes toward principal versus interest over the life of the loan. Understanding your loan-to-value (LTV) ratio is critical when shopping for a mortgage. If your down payment is less than 20% of the home price, most lenders require private mortgage insurance. PMI typically costs between 0.3% and 1.5% of the original loan amount per year and can add hundreds of dollars to your monthly payment. Once your LTV drops below 80%, you can request PMI removal. Our calculator supports common loan terms of 15, 20, 25, and 30 years. A shorter loan term means higher monthly payments but significantly less total interest paid. For example, a 15-year mortgage at the same interest rate will have roughly 40% higher monthly payments but can save you tens of thousands of dollars in interest over the life of the loan. All calculations are performed instantly in your browser. No personal data is collected or sent to any server. Use this tool as a starting point for your home buying journey, and consult a licensed mortgage professional for personalized advice.

Understanding Mortgage Payments

A mortgage payment typically consists of four components known as PITI: Principal, Interest, Taxes, and Insurance. Understanding each component helps you plan your housing budget effectively.

Principal and Interest

The principal is the amount you borrowed, and interest is the cost the lender charges for lending you the money. In the early years of a mortgage, most of your payment goes toward interest. As you pay down the balance, more of each payment goes toward principal. This is called amortization.

Taxes, Insurance, and PMI

Property taxes vary by location and are typically 0.5% to 2.5% of the home value annually. Homeowners insurance protects your property against damage and typically costs $1,000 to $3,000 per year. PMI is required when your down payment is less than 20% and usually costs 0.3% to 1.5% of the loan amount annually.

Formulas

Monthly Payment (P&I)

M = P × [r(1+r)^n] / [(1+r)^n - 1]

M is the monthly principal and interest payment, P is the loan amount, r is the monthly interest rate (annual rate / 12), and n is the total number of monthly payments (years × 12).

Total Interest Paid

Total Interest = (M × n) - P

The total interest over the life of the loan equals the sum of all monthly payments minus the original loan principal.

Remaining Balance at Month k

B(k) = P × [(1+r)^n - (1+r)^k] / [(1+r)^n - 1]

Calculates the outstanding loan balance after k payments have been made. Used to generate amortization schedules and determine when PMI can be removed.

Debt-to-Income Ratio (DTI)

DTI = (Total Monthly Debt Payments / Gross Monthly Income) × 100

Lenders use DTI to assess borrowing capacity. A front-end DTI (housing only) of 28% or less and back-end DTI (all debts) of 36% or less is generally recommended.

Reference Tables

Typical Mortgage Rates and Terms by Loan Type

Common mortgage products with their typical interest rates, terms, and down payment requirements. Rates are approximate and vary by lender and market conditions.

Loan Type	Typical Rate	Term	Min. Down Payment	PMI Required
30-Year Fixed	6.0%–7.0%	30 years	3%–5%	Yes, if < 20% down
15-Year Fixed	5.5%–6.5%	15 years	3%–5%	Yes, if < 20% down
5/1 ARM	5.5%–6.5%	30 years	5%	Yes, if < 20% down
FHA Loan	5.5%–6.5%	15 or 30 years	3.5%	Yes (MIP for life if < 10% down)
VA Loan	5.5%–6.5%	15 or 30 years	0%	No (VA funding fee instead)

PMI Cost by Down Payment and Credit Score

Annual PMI rates as a percentage of the loan amount. PMI is removed once your loan-to-value ratio reaches 80%.

Down Payment	Excellent Credit (760+)	Good Credit (700–759)	Fair Credit (640–699)
3%–5%	0.30%–0.50%	0.50%–0.80%	0.80%–1.25%
5%–10%	0.25%–0.40%	0.40%–0.70%	0.70%–1.10%
10%–15%	0.20%–0.35%	0.35%–0.55%	0.55%–0.90%
15%–19.9%	0.15%–0.25%	0.25%–0.45%	0.45%–0.75%

Worked Examples

$300,000 Mortgage at 6.5% for 30 Years

Home price $375,000 with 20% down payment ($75,000), 30-year fixed rate at 6.5%, property tax $4,500/year, insurance $1,800/year.

Loan amount: $375,000 - $75,000 = $300,000

Monthly rate: 6.5% / 12 = 0.5417%

Number of payments: 30 × 12 = 360

M = 300,000 × [0.005417 × (1.005417)^360] / [(1.005417)^360 - 1]

M = 300,000 × 0.006321 = $1,896.20 (P&I only)

Add property tax ($375/mo) + insurance ($150/mo) = $2,421.20 total

Monthly payment is $2,421.20 (PITI). Total interest paid over 30 years is $382,633. Total cost of the home including interest is $757,633.

15-Year vs 30-Year Comparison on $250,000 Loan

Compare a $250,000 loan at 6.0% for 30 years versus 5.5% for 15 years.

30-year payment: M = 250,000 × [0.005 × (1.005)^360] / [(1.005)^360 - 1] = $1,498.88/mo

30-year total interest: ($1,498.88 × 360) - $250,000 = $289,595

15-year payment: M = 250,000 × [0.004583 × (1.004583)^180] / [(1.004583)^180 - 1] = $2,042.71/mo

15-year total interest: ($2,042.71 × 180) - $250,000 = $117,688

The 15-year mortgage costs $543.83 more per month but saves $171,907 in total interest — a 59% reduction. You also build equity twice as fast.

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.