Mortgage Calculator
Estimate your monthly mortgage payment including principal, interest, property tax, home insurance, PMI and HOA fees.
PMI is added because the down payment is under 20%.
How to estimate your mortgage payment
- Enter the home price and your down payment as a percentage.
- Add the interest rate and choose a loan term.
- Fill in property tax, insurance and HOA if you know them — or keep the typical defaults.
- Your full monthly payment and its breakdown update instantly.
Principal and interest use the standard fixed-rate formula M = L × r ÷ (1 − (1 + r)−n). Property tax is the yearly rate × home price ÷ 12, insurance is the yearly premium ÷ 12, and PMI (private mortgage insurance) is added only when your down payment is below 20%.
Frequently asked questions
How much house can I afford?
A common rule is to keep housing costs under 28% of your gross monthly income and total debt under 36%. Use the monthly total above to check.
What is PMI?
Private mortgage insurance protects the lender when you put down less than 20%. It usually costs 0.3%–1.5% of the loan per year and can be removed once you reach 20% equity.
Is a 15-year or 30-year mortgage better?
A 15-year loan has higher monthly payments but far less total interest. A 30-year loan is cheaper each month but costs more overall.
What does a mortgage calculator do?
A mortgage calculator estimates what you will pay each month for a home loan. It starts with principal and interest, worked out with the standard fixed-rate formula, then adds the costs most US buyers pay through the same monthly bill: property tax, homeowners insurance, private mortgage insurance (PMI) and any HOA fee. Lenders call principal, interest, taxes and insurance PITI; PMI and HOA fees are added on top where they apply.
Use it before you talk to a lender to see how price, down payment, rate and term change your payment. It runs entirely in your browser and gives an estimate only: your actual rate, tax bill, insurance quote and closing costs will come from your lender and local authorities.
Worked example: a $400,000 home
Using the calculator’s default numbers, a $400,000 home with 20% down, a 6.5% fixed rate over 30 years, 1.1% property tax and $1,500 a year of insurance:
- Loan amount: $400,000 − $80,000 down payment = $320,000.
- Principal and interest: monthly rate 6.5% ÷ 12 = 0.54167%, 360 payments, giving $2,022.62 a month.
- Property tax: $400,000 × 1.1% ÷ 12 = $366.67.
- Insurance: $1,500 ÷ 12 = $125.00.
- Total monthly payment: about $2,514.28, with no PMI because the down payment is 20%.
Over 30 years you would pay about $408,142 in interest, more than the amount borrowed. In the very first payment, $1,733.33 goes to interest and only $289.28 reduces the balance; that split slowly reverses as the loan is amortized.
With only 10% down, the loan becomes $360,000, principal and interest rise to $2,275.44, and PMI at 0.5% a year adds $150 a month, for a total of about $2,917.11 until you reach 20% equity and can ask for PMI to be removed.
15 vs 30 year mortgage compared
Same $320,000 loan at 6.5%, principal and interest only (15-year loans are often offered at a slightly lower rate, which would widen the gap further):
| Term | Monthly payment | Total interest | Total repaid |
|---|---|---|---|
| 30 years | $2,022.62 | $408,142 | $728,142 |
| 15 years | $2,787.54 | $181,758 | $501,758 |
The 15-year loan costs about $765 more each month but saves roughly $226,000 in interest. The 30-year loan keeps the monthly payment lower and leaves more room for savings or emergencies. Neither is right for everyone; it depends on your income stability and other goals.
How much house can I afford?
A widely used guideline is the 28/36 rule: housing costs (the total from this mortgage calculator) under 28% of gross monthly income, and all debt payments under 36%. On a $120,000 salary, that is $10,000 a month gross, so about $2,800 for housing and $3,600 for all debts. In the example above, the $2,514 payment fits within 28%, while the 10%-down version at $2,917 does not. Lenders set their own limits, so treat this as a starting point rather than a rule.
Tips and common mistakes
- Do not forget closing costs. Fees, title insurance and prepaid items are paid upfront and are not in the monthly estimate.
- Check the real property tax rate. Rates vary widely by state and county; look up the actual rate for the address, not a national average.
- Compare APR, not just the rate. APR includes points and some fees, making it easier to compare lenders.
- Plan for PMI removal. On a conventional loan you can usually request cancellation once the balance reaches 80% of the original value.
- UK readers: a repayment mortgage clears the loan by the end of the term, like this calculator assumes. An interest-only mortgage pays just the interest, so the full balance is still owed at the end. On £250,000 at 4.5% over 25 years, repayment costs about £1,389.58 a month versus £937.50 interest-only, but only the repayment option leaves you owning the home outright. Property tax and PMI do not apply in the UK, so set those fields to 0.
More questions
How is a monthly mortgage payment calculated?
Principal and interest use M = L × r ÷ (1 − (1 + r)−n), where L is the loan amount, r is the yearly rate ÷ 12 and n is the number of monthly payments. Monthly property tax, insurance, PMI and HOA fees are then added on top.
What is the monthly payment on a $300,000 mortgage?
At 6.5% over 30 years, principal and interest on a $300,000 loan is about $1,896 a month; over 15 years it is about $2,613. Taxes, insurance and PMI come on top, so enter your own figures above for a full estimate.
Does paying extra on a mortgage really help?
Yes. Any extra payment applied to principal reduces the balance that interest is charged on, which shortens the loan and cuts total interest. Ask your lender to apply extra payments to principal and check for prepayment penalties.
Should I put down 20%?
Putting down 20% avoids PMI on a conventional loan and lowers the monthly payment, but it is not required. Many buyers put down less to keep cash for emergencies and repairs. Compare both scenarios in the calculator to see the monthly difference.
Borrowing for something other than a home? Try the loan calculator for car or personal loans, the compound interest calculator to plan how long it takes to save a down payment, or the percentage calculator to check what share of your income a payment takes.
Further reading: Buying a house: tools and resources (CFPB).