Estimate your monthly mortgage payment in seconds — including principal, interest, property tax, insurance and PMI — and see exactly how much interest you’ll pay over the life of the loan.
Loan details
$
$
%
%
Taxes & fees (optional)
$
$
$
% of loan
Estimated monthly payment
— /mo
Enter a home price and interest rate
Total interest
—
Total of payments
—
Payoff year
—
Loan-to-value
—%
Results update automatically as you type. Estimates only — confirm exact figures with your lender.
What this mortgage calculator tells you
A mortgage calculator estimates your monthly home loan payment based on four inputs: the loan amount, the interest rate, the loan term, and your added costs (property tax, insurance and PMI). This tool calculates your monthly principal & interest, adds taxes and insurance to show your true PITI payment, and reveals the total interest you’ll pay over the life of the loan.
Most buyers underestimate the real cost of a home because they only look at principal and interest. This calculator includes property tax, homeowners insurance, private mortgage insurance (PMI) and HOA fees, so the number you see is much closer to what you’ll actually pay each month.
How to use the mortgage calculator
Enter the home price. The full purchase price of the property you’re considering.
Set your down payment. Type a dollar amount or a percentage — the two fields stay in sync automatically.
Choose your loan term and interest rate. 30 and 15 years are most common; the rate is your annual APR.
Add taxes, insurance and fees. Property tax, homeowners insurance, PMI and any HOA dues.
Read your result. Your estimated monthly payment, total interest and payoff date update instantly.
What’s included in a mortgage payment? (PITI)
Lenders use the shorthand PITI to describe the parts of a typical monthly mortgage payment:
Principal — the portion that pays down your loan balance.
Interest — the cost of borrowing, highest in the early years of the loan.
Taxes — property taxes, usually collected monthly into an escrow account.
Insurance — homeowners insurance, and PMI if your down payment is under 20%.
Some homes also carry HOA fees, which aren’t part of PITI but still affect your monthly budget. This calculator accounts for all of them.
How mortgage payments are calculated
Your monthly principal and interest payment is found using the standard amortization formula:
n = total number of payments (loan term in years × 12)
Property tax (÷ 12), insurance (÷ 12), PMI and HOA are then added on top to produce your full monthly payment.
Worked example
Suppose you buy a $400,000 home with 20% down ($80,000), leaving a $320,000 loan at 6.5% over 30 years:
Estimated monthly breakdown
Component
Monthly
Principal & interest
$2,023
Property tax
$400
Home insurance
$125
PMI
$0
Total payment
$2,548
Over 30 years you’d pay about $408,000 in interest alone — which is why even a small rate reduction or a shorter term can save tens of thousands of dollars.
How much house can you afford?
A widely used rule is the 28/36 rule: keep your total housing payment (PITI) at or below 28% of your gross monthly income, and all debt payments below 36%. On a $6,000/month income, that’s roughly a $1,680 maximum mortgage payment.
28% housing guideline by income
Gross monthly income
Max payment (28%)
$4,000
$1,120
$6,000
$1,680
$8,000
$2,240
$10,000
$2,800
7 ways to lower your monthly mortgage payment
Put more down. A bigger down payment shrinks the loan and can eliminate PMI.
Improve your credit score before applying to qualify for a lower rate.
Shop at least 3 lenders — rates and fees vary more than most people expect.
Choose a longer term to reduce the monthly amount (you’ll pay more interest overall).
Buy points if you’ll stay in the home long enough to break even.
Cancel PMI once you reach about 20% equity.
Refinance when market rates fall meaningfully below your current rate.
Mortgage terms glossary
Term
What it means
APR
Annual percentage rate — your yearly cost of borrowing including some fees.
Amortization
The schedule of how each payment splits between principal and interest over time.
Escrow
An account your lender uses to collect and pay taxes and insurance for you.
LTV
Loan-to-value — the loan amount divided by the home’s value, shown as a percentage.
PMI
Private mortgage insurance, usually required when your down payment is under 20%.
Principal
The amount you borrowed and still owe, not counting interest.
Frequently Asked Questions
How is a monthly mortgage payment calculated?
It uses the formula M = P × r(1 + r)n ÷ ((1 + r)n − 1), where P is the loan amount, r is the monthly interest rate (annual rate ÷ 12), and n is the number of payments (years × 12). Property tax, insurance, PMI and HOA are then added to reach your full monthly payment (PITI).
What is included in PITI?
PITI stands for Principal, Interest, Taxes and Insurance — the four core parts of most mortgage payments. PMI and HOA fees may be added depending on your loan and property.
How much house can I afford?
Follow the 28/36 rule: keep housing costs under 28% of gross monthly income and total debt under 36%. On $6,000/month, aim for a mortgage payment of about $1,680 or less.
Do I have to pay PMI?
PMI is typically required on conventional loans when your down payment is below 20%. It usually costs 0.3%–1.5% of the loan per year and can be cancelled once you reach about 20% equity.
Should I choose a 15-year or 30-year mortgage?
A 15-year loan has higher monthly payments but a lower rate and far less total interest. A 30-year loan has lower, more flexible payments but costs much more in interest overall.
Does this calculator include taxes and insurance?
Yes — you can add property tax, homeowners insurance, PMI and HOA fees so your estimate reflects the real monthly cost of owning the home.
How can I lower my monthly mortgage payment?
Make a larger down payment, improve your credit score, shop multiple lenders, extend the term, remove PMI at 20% equity, or refinance when rates drop.
