Mortgage Calculator
Calculate monthly mortgage payments including taxes and insurance.
What Is the Mortgage Calculator?
A mortgage calculator answers the biggest affordability question in personal finance: what will this house actually cost me each month, and over thirty years? Enter the home price, down payment, rate, and term to see the principal and interest payment immediately. Add property tax, insurance, and HOA figures where you know them to approach the true monthly obligation lenders call PITI. The calculator also exposes the long arc of amortization: early payments go mostly to interest while later ones build equity faster. Testing different rates and terms turns vague anxiety into concrete numbers, which is exactly what you want before making an offer or refinancing.
Key Statistics
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6.58%
Average 30 year fixed mortgage rate as of mid 2026
Source: Freddie Mac Primary Mortgage Market Survey, July 2026
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$440,600
Median US existing home price
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74%
Share of buyers who finance their home purchase with a mortgage
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65.2%
US homeownership rate
Source: US Census Bureau, Q2 2026
The Formula
M = P[r(1+r)^n/((1+r)^n-1)] + monthly taxes + monthly insurance.
Worked Examples
A $450,000 home with a 10% down payment of $45,000 at 6.5% for 30 years: principal and interest of $2,559 per month. Adding $375 for property taxes and $125 for homeowners insurance brings the total monthly payment to about $3,059.
Thirty year loan at 6.58 percent
- Borrow $300,000 over 360 months at 6.58 percent
- Principal and interest payment is about $1,912 per month
- Multiply by 360 payments for total payments near $688,400
Interest alone totals roughly $388,400, which is why the rate matters so much.
Fifteen year versus thirty year on $350,000
- At 5.96 percent for 15 years the payment is about $2,946 with roughly $180,300 in total interest
- At 6.58 percent for 30 years the payment is about $2,231 with roughly $453,100 in total interest
- Subtract the two lifetime interest figures
The 15 year loan costs about $272,800 less overall despite the higher monthly payment.
Real World Use Cases
Setting a purchase budget
Work backwards from a comfortable monthly payment to the loan amount, then add your down payment to get a realistic price range.
Comparing loan offers
Rate sheets from two lenders often differ by an eighth of a point. Run both here to see the decade long dollar difference.
Refinance decisions
Compare your current payment and remaining balance against a refinance offer to find the breakeven month.
Planning extra principal payments
See how much lifetime interest disappears when you add even $100 per month toward principal.
Expert Tips
- ✓ Budget beyond principal and interest because taxes, insurance, and HOA dues can add hundreds per month.
- ✓ Each quarter point off the rate on a $300,000 loan saves tens of thousands over thirty years, so negotiate points carefully.
- ✓ Twenty percent down avoids PMI, but waiting years to save it while prices rise is not always the win it appears to be.
- ✓ Ask for the loan estimate document and check section A closely for origination charges before comparing offers.
- ✓ Biweekly payments produce thirteen full payments a year and can trim years off a thirty year loan.
Frequently Asked Questions
What is PMI and when do I need it? ▼
PMI (private mortgage insurance) protects the lender if you default. You typically need it when your down payment is less than 20% of the home price. It adds roughly $100 to $300 per month depending on loan size and credit.
What is the difference between prequalification and preapproval? ▼
Prequalification is an informal estimate based on self reported information. Preapproval involves a lender reviewing your credit and finances to make a firm commitment. Sellers take preapproval more seriously.
How much home can I afford? ▼
Most lenders use the 28/36 rule: your monthly housing costs should not exceed 28% of your gross monthly income, and total debt payments should not exceed 36%. Enter different home prices in this calculator to find your comfort zone.
What is a good down payment for a house? ▼
A 20% down payment avoids private mortgage insurance and lowers your payment. Many buyers put down less, and programs like FHA allow as little as 3.5%, while VA and USDA loans can require zero down. Weigh your savings against the monthly PMI cost.
What does a mortgage payment include? ▼
A full mortgage payment is often called PITI: principal, interest, property taxes, and homeowners insurance. Some payments also include private mortgage insurance or HOA fees. This calculator shows the principal and interest portion.
How does the loan term affect my mortgage? ▼
A 30 year mortgage gives the lowest monthly payment but the most total interest. A 15 year mortgage has a higher monthly payment but can save tens of thousands of dollars in interest over the life of the loan.
How much house can I afford? ▼
A common guideline keeps total housing costs near 28 percent of gross monthly income, though lenders may approve higher ratios. Run your target price here and compare the result to your budget.
How do I calculate a mortgage payment? ▼
Payment equals principal times the monthly rate divided by one minus the quantity of one plus the monthly rate raised to the negative number of months. The calculator applies this amortization formula for you.
Common Mistakes to Avoid
- ⚠ Ignoring property taxes and insurance when estimating monthly costs. These can add $500-$1,000+ per month.
- ⚠ Shopping for homes before getting pre-approved. You might fall in love with a home you cannot afford.
- ⚠ Making only the minimum down payment when you could afford more. Even 5% extra can save thousands in PMI and interest.
- ⚠ Forgetting closing costs. Two to five percent of the loan amount in fees and prepaid items is typical, and that money is due at signing on top of the down payment.
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Last updated: · by CalculatorPro Tools