Mortgage Calculator
Enter your home price, down payment, rate, and term to calculate your complete monthly payment with taxes, insurance, and PMI, plus total interest over the full loan life.
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Enter your values above to see the results.
Tips & Notes
- ✓Shop at least 3 lenders before committing — on a $300,000 loan, a 0.5% rate difference saves $90/month and over $32,000 over 30 years.
- ✓Keep total housing costs (mortgage + taxes + insurance + HOA) below 28% of gross monthly income — exceeding this strains your budget when unexpected expenses hit.
- ✓Making one extra monthly payment per year — or adding just $100/month extra to principal — can shorten a 30-year mortgage by 4-5 years and save $50,000+ in interest.
- ✓PMI disappears once you reach 20% equity, but many lenders require you to request it in writing — mark the date your balance hits 80% of the original purchase price.
- ✓A 15-year mortgage rate is typically 0.5-0.75% lower than a 30-year rate, which means the monthly payment difference is smaller than most people expect.
- ✓Get pre-approved before house hunting — pre-approval locks your rate for 60-90 days and shows sellers you are a serious buyer, which matters in competitive markets.
Common Mistakes
- ✗Budgeting only for principal and interest while ignoring property taxes ($2,000-$10,000/year), insurance ($1,200-$3,000/year), and PMI — these can add $500-$800/month to the true payment.
- ✗Choosing the longest term just for the lower payment without running the total interest comparison — the difference between a 15-year and 30-year is often $200,000+ in lifetime interest.
- ✗Using the annual interest rate directly in manual payment calculations instead of dividing by 12 — this produces a completely wrong result.
- ✗Maxing out the pre-approved amount without leaving 1-2% of home value annually for maintenance — deferred maintenance compounds and becomes far more expensive over time.
- ✗Forgetting that closing costs run 2-5% of the loan amount ($6,000-$15,000 on a $300,000 loan) — this cash must be available at closing, separate from the down payment.
- ✗Assuming the advertised rate is what you will receive — lenders quote their best rate, and your actual rate depends on credit score, down payment size, loan type, and debt-to-income ratio.
Mortgage Calculator Overview
A mortgage is a loan from a bank to buy a home. You pay a portion upfront (the down payment), borrow the rest, and repay it monthly over 15 or 30 years with interest. The bank holds the home as collateral until the loan is fully paid.
This calculator shows your complete monthly cost — principal, interest, taxes, insurance, and PMI — plus the total interest you will pay over the life of the loan.
What each field means:
- Home Price — the full purchase price of the property
- Down Payment — cash paid upfront as a percentage; below 20% triggers PMI, higher means smaller loan and less interest
- Interest Rate — annual rate charged by the lender; a 0.5% difference costs or saves $30,000+ over 30 years
- Loan Term — 30-year gives lower monthly payment but far more total interest; 15-year costs more monthly but saves $200,000+ in interest
- Property Tax Rate — charged annually by local government, collected monthly via escrow; ranges 0.5% to 2.5% by location
- Annual Insurance — homeowner insurance required by the lender; typically $1,000–$3,000 per year
- PMI Rate — Private Mortgage Insurance required below 20% down; protects the lender, not you; cancels automatically at 20% equity
What your results mean:
- Monthly Payment — full amount due each month (P&I + taxes + insurance + PMI); keep below 28% of gross monthly income
- Total Interest — what the bank earns over the full term; on a 30-year mortgage this routinely exceeds the original loan amount
- Principal vs Interest split — early payments are mostly interest; this shifts gradually and interest finally drops below 50% around year 22
A full example — $400,000 home, 10% down, 6.75% rate:
Loan amount: $360,000 Monthly P&I: $2,335 Property tax (1.2% annually): $400/month Homeowner insurance ($1,800/yr): $150/month PMI (0.85% on $360,000): $255/month Total monthly payment: $3,140 PMI cancels around year 8 when balance reaches $320,000. Total paid over 30 years: $840,600 on a $400,000 home.
EX: How the down payment changes your monthly cost 5% down ($20,000) → loan $380,000 → P&I $2,465 + PMI $323 = $2,788/month 10% down ($40,000) → loan $360,000 → P&I $2,335 + PMI $255 = $2,590/month 20% down ($80,000) → loan $320,000 → P&I $2,076 + PMI $0 = $2,076/month Gap between 5% and 20% down: $712/month — and PMI at 5% lasts nearly 10 years.
Monthly P&I by loan amount:
| Loan Amount | 6.00% | 6.75% | 7.50% |
|---|---|---|---|
| $200,000 | $1,199 | $1,297 | $1,399 |
| $300,000 | $1,799 | $1,946 | $2,098 |
| $400,000 | $2,398 | $2,594 | $2,797 |
| $500,000 | $2,998 | $3,243 | $3,497 |
| $600,000 | $3,597 | $3,891 | $4,196 |
| $750,000 | $4,497 | $4,864 | $5,245 |
15-year vs 30-year — which suits you:
| Factor | 15-Year | 30-Year |
|---|---|---|
| Monthly payment ($320k) | $2,744 — higher | $2,076 — lower |
| Total interest paid | $173,920 | $427,360 |
| Typical interest rate | ~6.25% — lower | ~6.75% — higher |
| Equity after 5 years | ~34% of home value | ~12% of home value |
| Best for | Stable income, long-term savings | Cash flow flexibility |
In the very first payment of a 30-year mortgage at 6.75%, roughly 91 cents of every dollar goes to interest — only 9 cents reduces what you owe. This is not a bank trick. It is the mathematical consequence of calculating interest on a large outstanding balance. The balance falls slowly at first and accelerates sharply in the final years, which is why extra principal payments made early eliminate far more future interest than the same payments made later.
Frequently Asked Questions
The 28% rule sets your maximum monthly housing cost at $1,867 on an $80,000 salary. At 6.75% interest with 20% down on a 30-year mortgage, that monthly payment corresponds to roughly a $285,000-$300,000 home price — after accounting for property tax around 1.2% and homeowner insurance around $150/month. If your local taxes are higher or you are putting less than 20% down (adding PMI), the affordable price drops further. The 36% rule (total debt including car payments and student loans below 36% of gross income) often limits buyers more than the 28% housing rule alone.
Private Mortgage Insurance protects the lender — not you — if you default, and is required when your down payment is less than 20% of the purchase price. PMI typically costs 0.5-1.5% of the loan amount annually; on a $300,000 loan that is $125-375 added to your monthly payment. PMI cancels automatically when your loan balance reaches 80% of the original appraised value under the Homeowners Protection Act. However, reaching 80% through market appreciation does not trigger automatic cancellation — you must request removal in writing and may need a new appraisal to document the current value.
On a $320,000 loan at current rates, a 15-year mortgage might cost around $2,744/month versus $2,076 for a 30-year — about $668 more per month. But the total interest saved is approximately $253,000 over the loan life. The 15-year is mathematically superior in every way: lower rate, less total interest, faster equity. Choose it only if the higher payment leaves you with genuine financial margin — emergency fund, retirement contributions, and room for income disruption. If the 15-year payment stretches your budget, a 30-year with regular extra principal payments gives you flexibility with most of the benefit.
Credit score is one of the most powerful levers on your mortgage rate. Borrowers with scores above 760 typically access the best available rates. A score between 700-759 often adds 0.25-0.50% to the rate; scores between 660-699 can add 0.50-1.00%; scores below 640 may add 1.50-2.00% or result in denial. On a $300,000 30-year mortgage, a 1% rate difference costs roughly $191 more per month and $68,000 more over the loan term. Spending 6-12 months paying down revolving debt and correcting credit report errors before applying can save tens of thousands of dollars.
Each discount point costs 1% of the loan amount and typically reduces the rate by 0.25%. On a $300,000 loan, one point costs $3,000 and saves roughly $48/month on a 30-year mortgage, putting the break-even at about 62 months — just over 5 years. If you are confident you will stay in the home beyond that break-even, points make financial sense. If you plan to sell or refinance before then, you are prepaying interest you will never recover. Points also require cash at closing, so weigh them against using that same cash to increase the down payment and potentially eliminate PMI.
A complete mortgage payment is often called PITI: Principal (the portion reducing your loan balance), Interest (the lender cost for the loan), property Taxes (collected monthly and held in escrow until the annual tax bill is due), and homeowner Insurance (same escrow arrangement). If your down payment is below 20%, PMI is added as a fifth component. HOA fees are a sixth component in communities with associations, though they are paid separately from the mortgage itself. Many buyers focus only on the P&I payment during shopping and are surprised by the full PITI figure, which can be 25-40% higher than P&I alone.