Mortgage Calculator

Calculate your exact monthly mortgage payment including property taxes, home insurance, and PMI. See how extra payments accelerate your payoff date.

⚡ Live updates 📈 Interactive chart 🇺🇸 All 50 states
Available by state: CA TX FL NY PA IL OH GA NC MI
$50K$1M$2M$3M
%
Down Payment: $80,000 (20%)
%
Current US average 30yr fixed: ~6.9%
≈ $2,920/year
≈ $150/month
$0
Monthly Payment
$2,490
Principal & Int$2,097
Principal & Interest$2,097
Property Tax$243
Home Insurance$150
Loan Amount:$320,000
Total Interest Paid:$434,859
Total Cost of Loan:$960,459
Estimated Payoff Date:Jun 2056

Frequently Asked Questions

Your 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 principal, r is the monthly interest rate (annual rate ÷ 12), and n is the total number of payments (e.g., 360 for a 30-year loan). Your full monthly payment (PITI) also includes property taxes, homeowner's insurance, and PMI if applicable.
PITI stands for Principal, Interest, Taxes, and Insurance. These are the four standard components of a monthly mortgage payment. Principal reduces the loan balance, Interest is the lender's fee, Taxes cover local property tax assessments, and Insurance covers homeowner's hazard policy and, if applicable, Private Mortgage Insurance (PMI).
Private Mortgage Insurance (PMI) is required for down payments under 20%. Under the federal Homeowners Protection Act, you can request PMI removal when your loan balance reaches 80% of your home's original value. The lender must automatically terminate PMI when the loan balance drops to 78% of the original purchase value, provided you are current on payments.
In 2026, mortgage rates continue to adjust to macroeconomic conditions. A 'good' rate is generally one that falls at or below the national average benchmark for a 30-year fixed loan. Borrowers with credit scores above 740 and a 20% down payment typically secure the lowest available rates from lenders.
Lenders evaluate affordability using debt-to-income (DTI) limits, commonly the 28/36 rule. This guideline states that your housing expenses (PITI) should not exceed 28% of your gross monthly income, and your total monthly debt payments (housing + student loans, credit cards, auto loans) should not exceed 36% of gross income.
A 30-year mortgage has a lower monthly payment, making it more affordable on a month-to-month basis, but carries a higher interest rate and costs significantly more in total interest over time. A 15-year mortgage offers a lower interest rate and pays off the principal twice as fast, but requires a higher monthly payment.
Making extra principal payments reduces the outstanding balance of your loan faster. Since interest is calculated monthly based on the current balance, a smaller balance means less interest accumulates. This shortens the loan term and saves thousands of dollars in total interest paid over the life of the mortgage.
An amortization schedule is a complete table showing every monthly payment over the life of a loan. It details how much of each payment goes toward the principal balance versus interest. In the early years of a mortgage, payments go mostly toward interest, while in the later years, they go primarily toward principal.
A larger down payment lowers your loan principal, which decreases your monthly interest and principal payments. Putting down 20% or more also eliminates the requirement for Private Mortgage Insurance (PMI), which can save you between 0.5% and 1.5% of the loan amount annually.
The 28/36 rule is a standard rule of thumb for lending. It suggests that a household spend a maximum of 28% of its gross monthly income on housing expenses, and a maximum of 36% on total debt payments (including housing costs and other recurring debts like car payments, student loans, or credit cards).
Property taxes are set by local county governments and are calculated as a percentage of the home's assessed value. Lenders typically divide the annual tax amount by 12 and collect it monthly into an escrow account, from which they pay the county tax bill on your behalf when it becomes due.
The average 30-year mortgage rate fluctuates daily based on treasury yields and economic indicators. In 2026, benchmark rates remain dynamic. You can check current national averages via surveys like Freddie Mac's PMMS to input the most accurate current rates into our calculator.

How to Use the Mortgage Calculator

Planning a home purchase requires a clear understanding of your future monthly housing costs. Using a comprehensive mortgage calculator with taxes, PMI, and insurance allows you to estimate your total monthly expenditures and map out a path to homeownership. By entering the purchase price, down payment, interest rate, and term, this mortgage payment calculator provides a detailed breakdown of your costs.

What is Included in a Monthly Mortgage Payment (PITI)?

Your monthly housing cost is rarely just principal and interest. Instead, lenders use the PITI framework to determine your total payment. A complete PITI calculator includes:

  • Principal: The portion of your payment that directly reduces the outstanding balance of your home loan.
  • Interest: The fee charged by the lender for borrowing the money, calculated based on your annual interest rate.
  • Taxes: Local property taxes, which vary depending on your municipality and county tax rates. Lenders collect this monthly and pay it on your behalf via an escrow account.
  • Insurance: Homeowners insurance policies to protect the property from damage, plus any required flood or hazard coverage.

If your down payment is less than 20%, you will also need to use a mortgage calculator with PMI to factor in Private Mortgage Insurance, which protects the lender if you default.

How the Amortization Formula Works

Amortization is the process of spreading out a loan into a series of equal periodic payments. This monthly mortgage payment calculator utilizes the standard amortization formula to determine your principal and interest (P+I) payment:

M = P [ r(1 + r)^n ] / [ (1 + r)^n - 1 ]

Where M is the monthly payment, P is the principal loan amount, r is the monthly interest rate (annual interest rate divided by 12 months), and n is the total number of payments (e.g., 360 months for a 30 year mortgage calculator). A mortgage amortization calculator illustrates how your payment is split, showing that early payments consist mostly of interest, while later payments pay off principal.

Private Mortgage Insurance (PMI) and Property Taxes

Under the Homeowners Protection Act, private mortgage insurance is required for conventional loans with a down payment under 20%. PMI typically costs between 0.5% and 1.5% of the loan amount annually. Using a home loan calculator helps you estimate when you will hit 20% equity (based on the original purchase price) so you can request PMI cancellation, or when it will automatically terminate at 22% equity.

Property taxes are estimated based on average state tax rates, though they are ultimately determined at the county level. In this home mortgage calculator 2026 edition, we use state-specific averages to help you get the most accurate tax estimate for your location.

Reducing Costs with Extra Payments and Choosing a Term

A mortgage calculator with extra payments is a powerful tool for planning financial freedom. Making extra monthly or lump-sum payments directly reduces your loan principal. Because interest is calculated based on your remaining principal, utilizing a mortgage payoff calculator shows how minor extra contributions can shorten your loan term by years and save tens of thousands in interest.

When comparing terms, a 15 year mortgage calculator will show higher monthly payments but lower interest rates, resulting in massive lifetime savings. Conversely, a 30-year term offers lower, more flexible monthly obligations. You can also evaluate a biweekly mortgage calculator strategy (making half-payments every two weeks, resulting in 13 full payments per year) to accelerate your payoff date.

Determining Affordability: The 28/36 Rule

Before searching for homes, use a mortgage affordability calculator to find your budget. Lenders rely on the 28/36 rule: your monthly housing costs (including HOA fees using a mortgage calculator with HOA) should not exceed 28% of your gross monthly income (front-end ratio), and your total monthly debt payments should not exceed 36% (back-end ratio). This how much house can I afford calculator logic ensures your budget remains sustainable, helping you find a safe and free mortgage calculator experience to navigate your home buying journey.

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Calculators are for informational purposes only. Not financial, tax, or medical advice.