Mortgage Calculator

Calculate your monthly mortgage payment with our free mortgage calculator. Includes taxes, insurance, PMI, and HOA. See amortization schedule and total interest paid.

Last reviewed: April 2026

A mortgage calculator helps you estimate your monthly home loan payment based on the purchase price, down payment, interest rate, and loan term. Understanding these numbers before you shop for a home lets you set a realistic budget and compare loan offers with confidence.

Enter the home price and your down payment (as a percentage or dollar amount). Select the loan term (e.g. 15, 20, or 30 years) and the annual interest rate. Use Advanced Options to add property taxes, homeowners insurance, PMI, and HOA fees if applicable. Click Calculate to see your monthly payment, total interest over the life of the loan, and a full amortization schedule.

Examples

$300k home, 20% down, 30 year

For a $300,000 home with 20% down ($60,000) and a 30-year term at 6.5% interest, the monthly principal and interest payment is approximately $1,517.

$500k home, 10% down, 15 year

For a $500,000 home with 10% down ($50,000) and a 15-year term at 6.5% interest, the monthly payment increases significantly to around $3,920, but you will pay much less in total interest.

$400k home, 5% down with PMI

For a $400,000 home with 5% down ($20,000), a 30-year term at 7% interest, and 0.5% PMI, the monthly payment is roughly $2,528 for P&I plus about $158 for PMI, totaling approximately $2,686 before taxes and insurance.

15-Year vs 30-Year Mortgage

Feature	15-Year Fixed	30-Year Fixed
Monthly Payment (on $300k loan at 6.5%)	$2,613	$1,896
Total Interest Paid	$170,388	$382,633
Total Amount Paid	$470,388	$682,633
Interest Rate (typical)	Lower (often 0.5-0.75% less)	Higher
Monthly Cash Flow Flexibility	Less flexible	More flexible
Equity Build-Up Speed	Faster	Slower
Best For	Borrowers who can afford higher payments	Borrowers who want lower monthly obligations

Frequently Asked Questions

What is PMI and when is it required?

Private Mortgage Insurance (PMI) is usually required if your down payment is less than 20% of the home purchase price. It protects the lender if you stop making payments.

Should I choose a 15 or 30 year term?

A 30-year term offers lower monthly payments, making it more affordable month-to-month. A 15-year term has higher monthly payments but allows you to build equity faster and pay significantly less total interest.

How much down payment should I make?

A 20% down payment avoids PMI and secures better interest rates. However, many loans allow as little as 3-5% down.

What is included in the monthly payment?

Your monthly payment typically includes Principal and Interest (P&I). It may also include Property Taxes, Homeowners Insurance, and PMI if applicable, often collected via an escrow account.

How to calculate if I can afford a home?

A general rule is that your housing costs should not exceed 28% of your gross monthly income, and total debts should not exceed 36%.

What is the difference between interest rate and APR?

The interest rate is the cost of borrowing the principal amount. The APR (Annual Percentage Rate) includes the interest rate plus other loan costs such as origination fees, discount points, and closing costs, giving a more complete picture of the total borrowing cost.

Can I remove PMI once I have enough equity?

Yes. For conventional loans, you can request PMI removal once your loan-to-value ratio reaches 80%. Lenders are required to automatically cancel PMI when the ratio reaches 78% of the original home value.

Related Information

Glossary: Principal (loan amount), Interest (cost of borrowing), APR (annual cost of loan), PMI (private mortgage insurance), Escrow (account for taxes/insurance).

Key Terms

Principal: The original amount of money borrowed in a mortgage, excluding interest and fees.
Amortization: The process of spreading loan repayment into equal periodic installments where the ratio of interest to principal shifts over time.
Escrow: An account managed by the lender to collect and pay property taxes and homeowners insurance on the borrower's behalf.
Loan-to-Value (LTV): The ratio of the mortgage amount to the appraised property value, expressed as a percentage; a higher LTV means more lender risk.
PMI (Private Mortgage Insurance): Insurance that protects the lender against loss if the borrower defaults, typically required when the down payment is less than 20%.

References

Consumer Handbook on Adjustable-Rate Mortgages — Consumer Financial Protection Bureau (CFPB)
FHA Mortgage Limits — U.S. Department of Housing and Urban Development (HUD)
Homeowners Guide to Mortgage Costs — Board of Governors of the Federal Reserve System

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Quick Tips

•Get pre-approved before house hunting so you know your actual rate and maximum loan amount, not just an estimate.
•Compare the total interest paid over the full loan term, not just the monthly payment, when evaluating different loan options.
•Even a 0.25% lower interest rate on a 30-year mortgage can save tens of thousands of dollars; shop multiple lenders.
•Consider making one extra mortgage payment per year (or biweekly payments) to shave years off the loan and reduce total interest.
•Keep a cash reserve beyond the down payment for closing costs, moving expenses, and unexpected home repairs in the first year.

How to Use This Calculator

Understanding the Formula

The formula for monthly principal and interest payment is M = P [ r(1+r)^n ] / [ (1+r)^n - 1 ], where P is the loan amount, r is the monthly interest rate, and n is the number of months.