Mortgage Calculator

Quick answer

A mortgage calculator estimates your monthly payment from the home price, down payment, interest rate and term. The payment is principal and interest, which equal L x r / (1 - (1 + r)^-n), plus property tax, home insurance, PMI and HOA. A 360,000 loan at 7.03 percent over 30 years costs 2,402.35 a month in principal and interest.

Updated 2026-10-03Reviewed by Prof. Dr. Khalil Mudassar, PhD
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Monthly Payment and Schedule
$
The purchase price of the home.
Choose percent or a cash amount, then fill the next field.
For example 10 for 10 percent, or 40000 as a cash amount.
The yearly note rate, not the APR. Freddie Mac reported a 7.03% average 30-year fixed rate for the week of September 24, 2026.
Usually 30 or 15. Other terms such as 10, 20 or 25 work too.
$
From the tax bill or the listing. Leave blank to exclude.
$
Your yearly homeowners insurance premium. Leave blank to exclude.
$
Homeowners association or condo fee, if any.
Percent of the loan per year, from your lender quote. Applied only when the down payment is under 20 percent.
$
Paid on top of the required payment every month.
A second rate to compare the principal and interest payment.

Total monthly payment

--
Principal and interest--
Property tax--
Home insurance--
PMI--
HOA dues--
Loan amount--
Total interest--
With extra payments--
At the what-if rate--

Calculations run in your browser. Inputs are not sent to our servers; anything you Save stays in this browser only.

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How to Use the Mortgage Calculator

  1. Enter the home price and your down payment, as a percent or as cash. The tool works out the loan amount.
  2. Enter the interest rate and loan term, then the yearly property tax and home insurance, monthly HOA dues and a PMI rate if you put down less than 20 percent.
  3. Read the total monthly payment and its parts, then open the amortization schedule under the result. Optional: add an extra monthly payment or a what-if rate.

What each result tells you:

ResultWhat it means
Total monthly paymentEverything due each month: principal, interest, tax, insurance, PMI and HOA dues.
Principal and interestThe part that repays the loan. It stays level for the whole term on a fixed-rate loan.
Property tax and home insuranceYour yearly amounts divided by 12. A lender often collects them in an escrow account.
PMIPrivate mortgage insurance per month, with the month it is scheduled to end.
Loan amountPrice minus down payment, with the loan-to-value ratio (LTV).
Total interestAll interest over the full term with no extra payments.
Amortization scheduleA year-by-year table of principal paid, interest paid and the balance left.
With extra paymentsThe new payoff time and the interest saved by your extra monthly principal.
At the what-if ratePrincipal and interest at a second rate, and the monthly difference.

What Is a Mortgage Calculator?

A mortgage calculator works out what a home loan costs each month and over its full life. You enter the home price, down payment, interest rate and term, and it returns the monthly payment, the loan amount and an amortization schedule.

The monthly payment has four basic elements. The Consumer Financial Protection Bureau (CFPB) calls them principal, interest, taxes and insurance, known together as PITI. Principal repays the amount borrowed. Interest is the cost of borrowing. Taxes means property tax, and insurance means homeowners insurance. Many payments also carry two more items: private mortgage insurance (PMI) and homeowners association (HOA) dues.

Lenders often collect the tax and insurance parts in an escrow account and pay those bills for you. The guide on what an escrow account is explains how that works.

A mortgage payment is not the same as the total cost of owning a home. Repairs, utilities and closing costs sit outside it. It is also not a lender quote: the rate and fees you are offered depend on your credit and the loan type.

How Does the Mortgage Calculator Work?

The calculator finds the level principal and interest payment with the standard amortization formula, adds the monthly share of each other cost, and then builds the full repayment schedule.

Formula: P and I = L x r / (1 - (1 + r)^-n), where L is the loan amount, r is the yearly rate divided by 12, and n is the number of monthly payments. Total = P and I + tax / 12 + insurance / 12 + PMI + HOA.
  1. Loan amount = home price - down payment. LTV = loan amount / home price.
  2. Principal and interest come from the formula above. A rate of 0 percent uses loan amount / n.
  3. Monthly tax = yearly property tax / 12. Monthly insurance = yearly premium / 12.
  4. Monthly PMI = loan amount x PMI rate / 12, only when the LTV is above 80 percent.
  5. Total = principal and interest + tax + insurance + PMI + HOA dues.

The Amortization Schedule

Each month, interest is charged on the balance left, and the rest of the principal and interest payment reduces that balance. Early payments are mostly interest; later payments are mostly principal. The schedule under the result sums these into a year-by-year table of principal paid, interest paid and the year-end balance. A year-by-year and month-by-month breakdown also lives on the 15 vs 30 year mortgage calculator for term comparisons.

The tool also finds the month when the scheduled balance first reaches 78 percent of the home price. The CFPB states that a servicer must end PMI automatically on the date the balance is scheduled to reach 78 percent of the original value of the home.

Mortgage Calculator Example

A buyer purchases a 400,000 home with 10 percent down on a 30-year fixed loan at 7.03 percent. That rate is the Freddie Mac average for the week of September 24, 2026. The 4,800 tax, 1,800 insurance and 0.5 percent PMI rate are illustrations.

PartCalculationPer month
Loan amount400,000 - 40,000360,000 (90% LTV)
Principal and interestFormula with r = 7.03% / 12, n = 3602,402.35
Property tax4,800 / 12400.00
Home insurance1,800 / 12150.00
PMI360,000 x 0.5% / 12150.00
Total monthly paymentSum of the parts3,102.35

Meaning: tax, insurance and PMI add 700.00 a month, or 22.6 percent of the payment. PMI is scheduled to end by month 116, after 17,400.00 in premiums. Total interest over 30 years is 504,844.78. Paying 200 extra each month clears the loan in 23 years 9 months and saves 123,974.76 in interest.

Factors That Change Your Monthly Mortgage Payment

Interest Rate

The rate has the largest effect on principal and interest. On a 320,000 loan over 30 years, 7.03 percent costs 2,135.42 a month. One point lower costs 1,924.74 and one point higher costs 2,354.74. A year earlier the Freddie Mac average was 6.30 percent, which gives 1,980.71.

Down Payment

A larger down payment lowers the loan and can remove PMI. On the 400,000 example, moving from 10 to 20 percent down cuts the total from 3,102.35 to 2,685.42. Use the related down payment calculator to see how much cash each level needs.

Loan Term

A shorter term raises the payment and cuts the interest. The next section compares 30 and 15 years.

Property Tax and Insurance

These depend on where the home is and what it is worth, not on the loan. The CFPB notes that tax and insurance premiums can change from year to year, and your total monthly payment changes with them. The guide on how property tax is calculated helps you estimate the tax line.

PMI

The CFPB explains that PMI is usually required on a conventional loan with a down payment under 20 percent. At 5 percent down the example loan is 380,000, PMI is 158.33 a month and it runs until month 142.

HOA Dues

Dues are added in full. A 250 monthly fee lifts the 20 percent down example from 2,685.42 to 2,935.42.

30-Year vs 15-Year Mortgage

A 15-year loan costs more each month and far less overall. Both rows use a 320,000 loan with 400 tax and 150 insurance a month, at the Freddie Mac average rates for the week of September 24, 2026.

Term and ratePrincipal and interestTotal monthly paymentTotal interest
30 years at 7.03%2,135.422,685.42448,750.92
15 years at 6.42%2,773.493,323.49179,228.12

The 15-year loan costs 638.07 more a month and saves 269,522.80 in interest. It only works when the higher payment fits your budget every month. The 15 vs 30 year mortgage calculator compares the two terms in more detail.

Which Calculator Fits Which Question?

QuestionTool
What will I pay each month, all in?This mortgage calculator
How does each payment split into principal and interest over time?Mortgage amortization calculator, linked below
How much would a new loan save me?Mortgage refinance calculator, linked below

When to Use a Mortgage Calculator

Before You Shop for a Home

Test prices against the monthly payment you are comfortable with. Include tax, insurance and HOA dues, because they are part of what you pay every month.

When Comparing Down Payments

Run 5, 10 and 20 percent down. The PMI line shows what a smaller down payment costs each month and for how long.

When a Rate Quote Changes

Put the new rate in the what-if field. On the 360,000 example, 6.5 percent instead of 7.03 percent lowers principal and interest by 126.90 a month. The refinance savings calculator turns a lower rate into a break-even date.

When Planning Extra Payments

Add an extra monthly amount to see the payoff time and interest saved, then check the amortization schedule for the new balance each year.

Common Mortgage Calculator Mistakes

1. Looking Only at Principal and Interest

A quote of 2,402.35 becomes 3,102.35 once tax, insurance and PMI are added. Budget on the full figure.

2. Entering the APR as the Rate

The payment formula uses the note rate. The APR also includes fees, so it is higher and overstates the payment.

3. Typing Monthly Tax in the Yearly Field

Property tax and insurance go in as yearly amounts. A monthly figure in a yearly field makes the payment look far too low.

4. Forgetting PMI Under 20 Percent Down

Leaving the PMI rate blank on a 10 percent down loan hides 150.00 a month in the example.

5. Assuming the Payment Never Changes

Principal and interest stay level on a fixed-rate loan. Tax and insurance can rise, so the total can rise too.

6. Expecting PMI to Last for the Whole Loan

On a conventional loan the CFPB says you can ask to cancel PMI when the balance is scheduled to fall to 80 percent of the original value, and it must end at 78 percent.

Accuracy and Limitations

Principal and interest follow the standard fixed-rate formula and match a lender schedule to within cents of rounding. The other lines are only as accurate as the tax, insurance, PMI and HOA figures you enter.

What it calculates accurately

  • Principal and interest on a fixed-rate loan
  • The monthly share of yearly tax and insurance
  • The amortization schedule and total interest
  • The month the scheduled balance reaches 78 percent of the price
  • Payoff time and interest saved with a level extra payment

What it does not account for

  • Adjustable rates, interest-only periods and balloon loans
  • Closing costs, points and lender fees
  • Future changes in tax, insurance and HOA dues
  • Mortgage insurance rules of government-backed loans
  • Whether you qualify for the loan or the rate

How We Calculate the Mortgage Payment

Method
Level payment L x r / (1 - (1 + r)-n), with r = yearly rate / 12 and n in months. A 0% rate uses L / n. Total = principal and interest + tax / 12 + insurance / 12 + PMI + HOA.
Amortization
Each month, interest = balance x r and principal = payment - interest. The year-by-year schedule sums these and shows the year-end balance, before any extra payment.
PMI
Loan x PMI rate / 12, charged only when LTV is above 80 percent. The end month is the first month the scheduled balance is at or below 78 percent of the home price. The price stands in for the original value.
Extra payments
The extra amount goes to principal every month from month 1. Interest is charged on the lower balance.
Example rates
7.03% (30-year) and 6.42% (15-year), Freddie Mac Primary Mortgage Market Survey averages as of September 24, 2026. Tax, insurance and PMI figures are illustrations.
Rounding
Full precision in every step, shown to the cent. LTV shows 1 decimal.
Last reviewed
2026-10-03.

Frequently Asked Questions About the Mortgage Calculator

What does PITI stand for?

PITI stands for principal, interest, taxes and insurance. The CFPB calls these the four basic elements of a monthly mortgage payment.

How much is the monthly payment on a 300,000 mortgage?

A 300,000 loan at 7.03 percent over 30 years costs 2,001.96 a month in principal and interest. Property tax, insurance, PMI and HOA dues are added on top of that amount.

Does my mortgage payment include property tax and insurance?

It does when your lender uses an escrow account. The lender collects one twelfth of the yearly tax and insurance with each payment and pays the bills for you.

What is an amortization schedule?

It is a table of every payment split into principal and interest, with the balance left after each one. Early payments are mostly interest; later ones are mostly principal. This tool shows a year-by-year version under the result.

When does PMI stop?

On a conventional loan PMI must end when the balance is scheduled to reach 78 percent of the original home value, and you can ask to cancel it at 80 percent. In the 10 percent down example, the balance reaches 80 percent in month 101 and 78 percent in month 116.

Why did my mortgage payment go up on a fixed-rate loan?

The escrow part changed. The CFPB notes that property taxes and insurance premiums can change from year to year, and the total monthly payment changes with them.

How much does one percentage point change the payment?

On a 320,000 loan over 30 years, a move from 7.03 to 8.03 percent adds 219.32 a month, and a move down to 6.03 percent saves 210.68 a month.

Is a 15-year or a 30-year mortgage better?

Neither suits everyone. A 15-year loan has a higher payment and much lower total interest, while a 30-year loan keeps the monthly payment lower. Compare both against your budget.

What is LTV?

LTV is the loan-to-value ratio: the loan amount divided by the home price. A 360,000 loan on a 400,000 home is a 90 percent LTV.

How do extra payments change my mortgage?

Extra principal lowers the balance sooner, so less interest builds up and the loan ends early. In the example, 200 extra a month ends the loan 6 years 3 months early.

Is my information saved?

No. The calculation runs in your browser and nothing is sent to our servers. Anything you Save stays in this browser only.

Sources

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This mortgage calculator gives educational estimates only. It is not a loan offer, a Loan Estimate or financial advice. It assumes a fixed-rate loan and uses the tax, insurance, PMI and HOA figures you enter, which change over time. Your real payment depends on the rate, fees and escrow amounts a lender sets. Compare official Loan Estimates and speak with a qualified professional before you decide. Spotted an error? Let us know.

Author

shakeel-Muzaffar
Founder & Editor-in-Chief at  ~ Web ~ More Posts

Shakeel Muzaffar is the Founder and Editor-in-Chief of MultiCalculators.com, bringing over 15 years of experience in digital publishing, product strategy, and online tool development. He leads the platform's editorial vision, ensuring every calculator meets strict standards for accuracy, usability, and real-world value. Shakeel personally oversees content quality, formula verification workflows, and the platform's commitment to publishing tools that are genuinely useful for students, professionals, and everyday users worldwide.