How to Use This Mortgage Calculator
- 1Enter your home price and down payment amount.
- 2Input the interest rate and select your loan term (30, 20, or 15 years).
- 3Optionally add property tax, insurance, PMI, and HOA for your true monthly cost.
- 4Click Calculate Payment to see your monthly breakdown instantly.
- 5View the full amortization schedule to see how every dollar is applied month by month.
Understanding Your Mortgage Payment
Your monthly mortgage payment is made up of several components. The principal and interest (P&I) portion pays down the loan itself, while taxes, insurance, and potentially PMI are added on top to form your total PITI payment.
The Mortgage Formula Explained
The standard formula for calculating your monthly P&I payment is:
M = P × [r(1+r)^n] ÷ [(1+r)^n − 1]
Where P = principal loan amount, r = monthly interest rate (annual rate ÷ 12), and n = number of payments (years × 12).
What Is PMI?
Private Mortgage Insurance (PMI) is required by most lenders when your down payment is less than 20% of the purchase price. PMI protects the lender in case you default. It typically costs between 0.5% and 1.5% of your loan amount annually and is automatically removed once you reach 20% equity.
30-Year vs. 15-Year Mortgage: Which Is Better?
A 30-year mortgage has lower monthly payments, making homeownership more accessible, but you'll pay significantly more interest over the life of the loan. A 15-year mortgage has higher monthly payments but you'll build equity faster and pay roughly 50–60% less in total interest. Use the calculator above to compare both options side by side.
Current Mortgage Rates (2026)
Freddie Mac's weekly Primary Mortgage Market Survey put the average 30-year fixed rate at 7.28% and the 15-year fixed at 6.60% for the week of October 1, 2026. Rates change every week, so check the latest figure on Freddie Mac's survey page. Your own rate depends on your credit score, down payment, loan type, and lender. Borrowers with scores above 740 and at least 20% down usually get the lowest rates, and it pays to compare offers from at least three lenders.
How Much House Can I Afford?
A common guideline is the 28/36 rule: your monthly housing costs should not exceed 28% of your gross monthly income, and your total debt payments should not exceed 36%. For example, on a $90,000 annual salary ($7,500/month), your maximum mortgage payment should be about $2,100/month.
What Is Included in Your Monthly Payment (PITI)
The calculator above shows principal and interest, but your lender will quote a total monthly payment called PITI: principal, interest, property taxes, and homeowners insurance. Lenders usually collect taxes and insurance monthly and hold them in an escrow account, then pay the bills for you when they come due.
Property taxes vary widely by state and county. Effective rates range from well under 0.5% of a home's value in some areas to over 2% in others, so check your county assessor's site for the actual rate. On a $400,000 home, a 1% rate adds about $333 per month. Homeowners insurance also varies by location and risk (hurricane, wildfire, and hail zones cost more). HOA dues, if any, are not part of the loan payment but lenders count them when they judge whether you can afford the home.
Private mortgage insurance (PMI) applies to most conventional loans with less than 20% down. It typically costs roughly 0.3% to 1.5% of the loan amount per year, depending on your credit score and down payment. On a $380,000 loan that is about $95 to $475 per month. You can ask to have PMI removed once your loan balance reaches 80% of the home's original value, and it ends automatically at 78% if you are current on payments.
Worked Example: $400,000 Home With 20% Down
Say you buy a $400,000 home and put down $80,000 (20%), so you borrow $320,000. At the 7.28% average 30-year rate from the Freddie Mac survey above:
- 30-year loan: principal and interest of about $2,189 per month. Over 30 years you would pay about $468,000 in interest, for a total of about $788,000.
- 15-year loan at 6.60%: principal and interest of about $2,805 per month. Total interest is only about $185,000, a saving of roughly $283,000 compared with the 30-year loan, but the payment is about $616 higher each month.
Add property tax, insurance, and any HOA dues on top of these figures to get your real monthly cost. You can check these numbers by entering the same loan amount, rate, and term in the calculator.
How Extra Payments Cut Your Interest
Because mortgage interest is charged on your remaining balance, every extra dollar you pay toward principal early on saves interest for the rest of the loan. On the $320,000, 30-year loan at 7.28% above, adding just $200 per month toward principal would pay the loan off in about 23 years instead of 30, and cut total interest by roughly $127,000. Before sending extra payments, confirm with your lender that they are applied to principal and that there is no prepayment penalty. Use the amortization schedule above to see how your balance falls month by month.
Mortgage Types and 2026 Loan Limits
The loan program you choose changes your down payment, rate, and mortgage insurance costs:
- Conventional loans follow Fannie Mae and Freddie Mac rules. For 2026, the baseline conforming loan limit for a one-unit home is $832,750, rising to $1,249,125 in high-cost areas, according to the Federal Housing Finance Agency. Loans above the limit are called jumbo loans and usually need larger down payments and stronger credit.
- FHA loans are insured by the Federal Housing Administration and allow lower credit scores and down payments as small as 3.5% for qualifying borrowers. The 2026 one-unit FHA limit is $541,287 in lower-cost areas and up to $1,249,125 in high-cost areas, per HUD. FHA loans charge mortgage insurance premiums, so compare the total cost with a conventional loan.
- VA loans are for eligible veterans, service members, and some surviving spouses. They often require no down payment and no monthly mortgage insurance, though a one-time funding fee usually applies.
- USDA loans support low and moderate income buyers in eligible rural and suburban areas, with no down payment required.
Ways to Lower Your Mortgage Payment
If the payment you see is higher than you want, these levers have the biggest effect: increase your down payment (20% avoids PMI on conventional loans), improve your credit score before applying, shop several lenders and compare the Loan Estimate forms side by side, choose a longer term if you need a lower monthly payment, or consider paying discount points to buy down the rate if you plan to stay in the home long enough to recoup the upfront cost. A good rule of thumb is to divide the cost of the points by the monthly savings to find your break-even point in months.
This calculator provides estimates for planning only and is not financial advice. Your lender's quote will include fees, taxes, and insurance specific to your situation.