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Mortgage Calculator - Calculate Monthly Home Loan Payments

Free mortgage calculator to estimate monthly payments, total interest, PMI, taxes, and insurance. See your complete home buying costs before you apply.

10 min read

iAbout This Calculator

Buying a home is likely the largest financial decision you will ever make, and understanding your mortgage payment is the critical first step. Our comprehensive mortgage calculator helps you estimate your total monthly payment including principal, interest, property taxes, homeowners insurance, and private mortgage insurance (PMI) if applicable. Unlike basic calculators that only show principal and interest, this tool gives you the complete picture of your housing costs. By entering your home price, down payment, loan term, interest rate, and estimated taxes and insurance, you can see exactly what you will pay each month and over the life of your loan. Whether you are a first-time homebuyer exploring what you can afford, a current homeowner considering refinancing, or comparing different loan scenarios, this calculator provides the detailed information you need to make confident decisions. Understanding these numbers before you start house hunting helps you set realistic expectations and avoid falling in love with a home that stretches your budget too thin.

?How to Use

  1. 1

    Enter the home price for the property you are considering. This should be the full purchase price before any down payment.

  2. 2

    Input your down payment amount. A larger down payment reduces your loan amount and may help you avoid PMI. The calculator automatically determines if PMI applies based on whether your down payment is less than 20%.

  3. 3

    Select your loan term in years. Common options are 30 years (lower monthly payments, more total interest) or 15 years (higher monthly payments, less total interest). You can enter any term to compare options.

  4. 4

    Enter the annual interest rate offered by lenders. Check current mortgage rates online or get quotes from multiple lenders for accurate estimates.

  5. 5

    Input your estimated annual property tax. You can find this on county tax records or ask a real estate agent. Property taxes vary significantly by location.

  6. 6

    Enter your estimated annual homeowners insurance premium. Get quotes from insurance providers or estimate based on similar homes in your area.

  7. 7

    Click Calculate to see your complete monthly payment breakdown, total costs over the loan term, and amortization schedule showing how your equity builds over time.

fFormula

M = P \times \frac{r(1+r)^n}{(1+r)^n - 1} + T + I + PMI

Your monthly mortgage payment consists of principal and interest (calculated using the standard amortization formula), plus property taxes, insurance, and PMI if required. P is the loan amount (home price minus down payment), r is the monthly interest rate, n is the total number of payments, T is monthly property tax, I is monthly insurance, and PMI is private mortgage insurance if down payment is below 20%.

M
Total monthly payment (PITI)
P
Principal loan amount
r
Monthly interest rate (annual rate / 12 / 100)
n
Total number of monthly payments
T
Monthly property tax (annual / 12)
I
Monthly insurance (annual / 12)
PMI
Private mortgage insurance (if applicable)

Examples

First-Time Buyer - Starter Home

Inputs: homePrice: 300000, downPayment: 30000, loanTerm: 30, interestRate: 6.75, propertyTax: 3600, insurance: 1800
$2,200/month

A $300,000 home with 10% down ($30,000) at 6.75% for 30 years. The $270,000 loan has principal and interest of $1,752. Adding $300 monthly property tax, $150 insurance, and $113 PMI gives a total payment of approximately $2,200. PMI applies because down payment is under 20%.

20% Down - No PMI

Inputs: homePrice: 450000, downPayment: 90000, loanTerm: 30, interestRate: 6.5, propertyTax: 5400, insurance: 2400
$2,930/month

A $450,000 home with 20% down ($90,000) at 6.5% for 30 years. The $360,000 loan has principal and interest of $2,275. Monthly property tax is $450 and insurance is $200. No PMI required with 20% down, saving approximately $150/month.

15-Year Mortgage

Inputs: homePrice: 400000, downPayment: 80000, loanTerm: 15, interestRate: 5.75, propertyTax: 4800, insurance: 2100
$3,235/month

A $400,000 home with 20% down on a 15-year mortgage at 5.75%. Principal and interest is $2,660 (higher than 30-year). Taxes add $400 and insurance $175 monthly. Total interest over the loan is $158,800 compared to $352,000 on a 30-year term.

Luxury Home Purchase

Inputs: homePrice: 750000, downPayment: 150000, loanTerm: 30, interestRate: 6.25, propertyTax: 9000, insurance: 3600
$4,945/month

A $750,000 home with 20% down at 6.25% for 30 years. The $600,000 loan has principal and interest of $3,693. Monthly property tax is $750 and insurance is $300. No PMI with 20% down. Total paid over 30 years: $1,729,480.

Low Down Payment - FHA Style

Inputs: homePrice: 275000, downPayment: 9625, loanTerm: 30, interestRate: 7, propertyTax: 3300, insurance: 1650
$2,240/month

A $275,000 home with 3.5% down (FHA minimum). The $265,375 loan at 7% has principal and interest of $1,766. PMI of $111/month applies due to low down payment. Total monthly with taxes and insurance is approximately $2,240.

Use Cases

First-Time Home Buyers

Determine how much house you can afford before you start shopping. Enter different home prices to find the payment that fits your budget, and understand how down payment size affects your monthly costs and whether PMI will be required.

Refinancing Decisions

Compare your current mortgage payment to potential refinance options. See how a lower interest rate or different term could change your monthly payment and total interest paid over the remaining loan life.

15-Year vs 30-Year Comparison

Calculate payments for both loan terms to understand the tradeoff. A 15-year mortgage has higher monthly payments but dramatically lower total interest, potentially saving you hundreds of thousands of dollars.

Down Payment Planning

See how different down payment amounts affect your monthly payment and PMI requirements. Calculate whether it makes sense to wait and save for a larger down payment or buy sooner with less money down.

Budget Planning

Financial advisors recommend spending no more than 28% of gross income on housing. Use this calculator to ensure your potential mortgage payment, including all costs, fits within your budget alongside other expenses.

Frequently Asked Questions

What is PITI and why does it matter?
PITI stands for Principal, Interest, Taxes, and Insurance, the four components of a typical mortgage payment. Lenders evaluate your ability to pay PITI, not just principal and interest, when determining loan approval. Our calculator shows all four components so you see your true monthly housing cost.
What is PMI and how can I avoid it?
Private Mortgage Insurance (PMI) protects the lender if you default. It is required when your down payment is less than 20% of the home price. PMI typically costs 0.5-1% of the loan annually. You can avoid PMI by putting 20% down, using a piggyback loan, or choosing a lender-paid PMI option with a higher interest rate.
How does the loan term affect my payments and total cost?
A longer term like 30 years means lower monthly payments but significantly more total interest paid. A 15-year term has higher monthly payments but you pay off the loan faster and pay far less interest overall. For example, on a $300,000 loan at 6.5%, a 30-year term costs $382,000 in interest while a 15-year costs $145,000.
Should I make a larger down payment?
A larger down payment reduces your loan amount, monthly payment, and total interest. Putting 20% down eliminates PMI, saving hundreds monthly. However, avoid depleting your emergency fund. Balance a healthy down payment against keeping 3-6 months of expenses in savings.
What other costs should I budget for when buying a home?
Beyond your monthly payment, budget for closing costs (2-5% of loan amount), moving expenses, immediate repairs or upgrades, furniture, and ongoing maintenance (1-2% of home value annually). Also consider utilities, HOA fees, and potential increases in property taxes and insurance.
How accurate are these mortgage calculations?
These calculations are highly accurate for estimating principal and interest. Property taxes and insurance are estimates you provide. Actual taxes vary by location and can change annually. Insurance quotes from providers give the most accurate figures. Always verify with your lender before making final decisions.
What credit score do I need for the best mortgage rates?
Credit scores of 760 and above typically qualify for the best rates. Scores from 700-759 get good rates with slightly higher premiums. Scores 620-699 may qualify but pay noticeably higher rates. Below 620, conventional loans become difficult and FHA loans with higher PMI may be the only option.
How do adjustable-rate mortgages (ARMs) work?
ARMs offer a lower initial rate that adjusts periodically after a fixed period (commonly 5 or 7 years). They can save money if you plan to move or refinance before the adjustment. However, if rates rise significantly, your payment could increase substantially. This calculator estimates fixed-rate mortgages for predictable planning.

Conclusion

Understanding your complete mortgage payment is essential before making the largest purchase of your life. This calculator goes beyond basic principal and interest to show your true monthly housing cost including property taxes, insurance, and PMI. Use it to compare different scenarios: how much home you can afford, whether a larger down payment makes sense, and the trade-offs between 15-year and 30-year terms. Remember that your mortgage payment should fit comfortably within your overall budget, leaving room for savings, emergencies, and life's other expenses. Take time to run multiple scenarios, get pre-approved with actual lender rates, and approach your home purchase with confidence knowing exactly what to expect each month.

Last updated: January 6, 2026

Author: Calcoul Team

Reviewed by: Certified Financial Planner

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