Mortgage Calculator

How our mortgage calculator works

Most mortgage calculators show you only "P&I" — principal and interest. That's a wildly incomplete picture of what you'll actually pay every month. The number that lands in your bank account is PITI: principal, interest, property taxes, and homeowners insurance, plus PMI (private mortgage insurance) if your down payment is under 20%. Our calculator sums all of those, so the monthly payment shown is the one you'd actually budget around.

Enter your home price, down payment, interest rate, and loan term. Then fill in your estimated annual property tax, annual homeowners insurance, and monthly PMI. The calculator instantly produces a realistic monthly payment and shows the total interest you'll pay over the life of the loan.

The mortgage amortization formula

The principal-and-interest portion uses the standard fixed-rate amortization equation:

M = P × r × (1 + r)ⁿ / ((1 + r)ⁿ − 1)

• M = monthly principal-and-interest payment
• P = loan amount (home price minus down payment)
• r = monthly interest rate (annual rate ÷ 12)
• n = number of monthly payments (years × 12)

On top of that monthly P&I number, the calculator adds:

• Annual property tax ÷ 12
• Annual homeowners insurance ÷ 12
• Monthly PMI (if applicable)

The sum is your total monthly housing payment — the realistic number for your budget.

A worked example

Suppose you're buying a $400,000 home with a 10% down payment ($40,000), at 7% APR on a 30-year fixed mortgage, in an area where property tax is roughly 1.2% of home value, insurance is $1,500/year, and PMI is 0.6% of the loan.

• Loan amount = $360,000
• Principal & interest payment ≈ $2,395
• Property tax: $400,000 × 1.2% ÷ 12 = $400
• Homeowners insurance: $1,500 ÷ 12 = $125
• PMI: $360,000 × 0.6% ÷ 12 = $180
• Total PITI + PMI ≈ $3,100/month
• Total interest over 30 years ≈ $502,000

Now add a $200/month extra principal payment. The loan pays off about 6.5 years early and total interest drops by roughly $130,000. Same income, dramatically different outcome.

What changes your mortgage payment

Interest rate

On a 30-year, $360,000 loan, every 1-point change in rate moves your monthly P&I by about $240 — and moves total interest paid by roughly $90,000. Even small rate differences are enormous over 360 payments. This is why shopping 3–5 lenders is the single highest-ROI hour you can spend in the home-buying process.

Loan term

A 15-year loan typically carries a rate 0.5–0.75 percentage points lower than a 30-year and pays off twice as fast. The trade-off is a roughly 50% higher monthly payment. Many borrowers take the 30-year for flexibility, then voluntarily pay extra each month — getting most of the savings without locking in the higher commitment.

Down payment

Larger down payments cut the loan amount (and so the monthly payment and total interest) and can eliminate PMI at the 20% threshold. But cash put into the house is cash that isn't available for emergencies, retirement contributions, or other investments — the trade-off isn't free.

Property taxes and insurance

These vary widely by location and aren't included in the principal-and-interest number that most calculators show. Property tax can range from 0.3% (Hawaii, Alabama) to over 2% (New Jersey, Illinois) of home value annually. Homeowners insurance can be anywhere from $1,000 to $5,000+ per year depending on region, home value, and disaster exposure.

PMI

Required on conventional loans with under 20% down. Typically 0.3%–1.5% of the loan amount annually, added to your monthly payment. By federal law, your lender must automatically drop PMI when you reach 78% loan-to-value; you can request removal at 80%.

30-year fixed rates in 2026 — typical ranges

Actual quotes vary daily by lender, credit profile, loan type, and property. The ranges below reflect typical offers across major lenders in 2026 for a conforming conventional loan with strong credit:

• 30-year fixed: roughly 6.5% – 7.5%
• 15-year fixed: roughly 5.75% – 6.75%
• 5/1 ARM (intro period): roughly 6% – 6.75%
• FHA (low down payment): typically near 30-year fixed but with required FHA mortgage insurance

Glossary

• PITI: Principal, Interest, Taxes, Insurance — the four pieces of a typical mortgage payment.
• PMI: Private mortgage insurance, required on conventional loans with under 20% down.
• LTV (Loan-to-Value): Loan amount divided by home value. Lenders price risk on this number.
• DTI (Debt-to-Income): Total monthly debt payments divided by gross monthly income. Most lenders cap this at 43–50%.
• Escrow: Account held by the lender that collects 1/12 of your annual tax and insurance with each payment and pays the bills when due.
• Points: Upfront fee paid to lower your interest rate. 1 point = 1% of loan amount, usually cuts rate by 0.25%.
• ARM: Adjustable-rate mortgage. Starts at a fixed rate for a set period, then resets periodically.
• APR: Annual percentage rate. Includes lender fees, better than rate for comparing offers.

Want to dig deeper? See our guides on 15-year vs 30-year mortgages and how extra payments shrink your loan.