Mortgage Calculator

How to Use This Calculator

Enter the details below to calculate your estimated monthly mortgage payment. The calculator shows a complete breakdown of costs so you know exactly where your money goes each month.

• Home Price: The purchase price of the home you're considering. This is the starting point for your calculation.
• Down Payment: The amount of money you're paying upfront. A 20% down payment ($80,000 on a $400,000 home) eliminates PMI and gives you the best loan terms.
• Interest Rate: The annual interest rate on your mortgage. As of 2026, average rates are around 6.5-7% for a 30-year fixed conventional loan.
• Loan Term: How long you'll take to repay the loan. 30 years is most common; 15-year loans have lower rates but higher payments.
• Property Tax: Yearly property taxes, typically 1-2% of home value. Varies significantly by state and county.
• Insurance: Homeowner's insurance, required by lenders. Typically $1,000-2,500/year depending on location and coverage.

Understanding Your Payment

Your monthly mortgage payment includes six components, often abbreviated as PITI plus extras:

• Principal: The portion of payment that goes toward paying down your loan balance. This starts small and grows over time.
• Interest: The cost of borrowing money, determined by your interest rate. In early years, most of your payment goes to interest.
• Property Tax: Paid to your local government, typically yearly but collected monthly through escrow.
• Insurance: Homeowner's insurance protects your home and satisfies lender requirements.
• HOA Fees: If applicable, paid to your homeowners association for shared amenities and maintenance.
• PMI: Private Mortgage Insurance required if down payment is less than 20%. Can be removed once you reach 20% equity.

Worked Example

Here's what a typical mortgage payment looks like on a $400,000 home with 20% down at 6.5% over 30 years:

• Loan Amount: $320,000
• Principal & Interest: $2,023/month
• Property Tax (1.2%): $400/month
• Insurance: $150/month
• Total Monthly Payment: $2,573/month
• Total Interest Paid: $408,108 over 30 years

Notice that you'll pay more in interest than the original loan amount. This is why paying extra toward principal or choosing a shorter term can save dramatically.

Tips to Reduce Your Mortgage Payment

• Increase your down payment: More down = lower loan amount = lower payment. 20% also eliminates PMI.
• Shop for the best rate: Even 0.25% difference matters. Get quotes from at least 3-5 lenders.
• Choose a longer term: A 30-year term has lower payments than 15-year, though you'll pay more total interest.
• Buy discount points: Paying upfront to lower your rate can reduce payments if you stay long enough to break even.
• Lower your property taxes: Appeal your tax assessment if you believe your home is overvalued.
• Shop for insurance: Compare quotes from multiple insurers — rates vary significantly.

Frequently Asked Questions

How much of my payment goes to principal vs interest? In the early years of a 30-year mortgage, about 70-80% of your payment goes to interest. By year 20, it's roughly 50/50. In the final years, most of your payment goes to principal.

When can I remove PMI? You can request PMI removal when your loan balance reaches 80% of the original home value. Lenders must automatically cancel PMI at 78% of the original value. You can also request removal if your home appreciates to 80% of the current value.

Should I include taxes and insurance in my payment estimate? Yes. Your actual monthly housing cost includes PITI, not just principal and interest. Ignoring taxes and insurance gives an incomplete picture of affordability.