Our free mortgage calculator helps you estimate your real monthly payment before you talk to a lender. Instead of showing only principal and interest, it adds property taxes, homeowners insurance, private mortgage insurance (PMI), and HOA fees, so you can see the full amount you’ll pay each month. Enter your numbers below and adjust them to compare different scenarios.
PMI applies only when your down payment is under 20% and stops when the balance reaches 78% of the home price.
Total monthly payment
$0
- Principal & interest$0
- Property tax$0
- Home insurance$0
- PMI$0
- HOA fees$0
| Year | Principal paid | Interest paid | Remaining balance |
|---|
Estimates for illustration only. Your actual rate, taxes, insurance and PMI will depend on your lender, location and credit profile.
How to Use This Mortgage Calculator
Each field changes your result instantly. Here’s what to enter:
- Home price: the price you expect to pay for the home.
- Down payment: enter it in dollars or as a percentage. The other field updates automatically.
- Interest rate: use a quote from a lender if you have one. If not, check Freddie Mac’s weekly Primary Mortgage Market Survey for the current national average, and add a little if your credit score is below 740.
- Loan term: the most common options are 30 and 15 years.
- Property tax: an annual percentage of the home’s value. Rates vary a lot by state and county, so check your county assessor’s website or the listing for the home.
- Home insurance: your estimated yearly premium. A quote from an insurer is the best source.
- PMI rate: private mortgage insurance usually costs between 0.3% and 1.5% of the loan amount per year on conventional loans with less than 20% down. The calculator applies it only when your down payment is under 20%.
- HOA fees: the monthly fee if the home is in a community with a homeowners association.
Click Show amortization schedule to see, year by year, how much of your payments goes to principal and to interest, and how much you still owe.
What Your Monthly Mortgage Payment Includes
Lenders often call the full payment PITI: principal, interest, taxes, and insurance. Many buyers also pay PMI and HOA fees.
| Part of the payment | What it is |
|---|---|
| Principal | The part that pays down your loan balance |
| Interest | What the lender charges for lending you the money |
| Property taxes | Local taxes, usually collected through your escrow account |
| Homeowners insurance | Protects the home against damage, also usually paid through escrow |
| PMI | Required on most conventional loans with less than 20% down |
| HOA fees | Paid to your homeowners association, usually not through the lender |
At the start of the loan, most of each payment goes to interest. Over time the balance falls, so the interest portion shrinks and more of your payment goes to principal.
How Mortgage Payments Are Calculated
The principal and interest portion uses the standard formula for a fixed-rate loan:
M = P × [r(1 + r)^n] / [(1 + r)^n − 1]
- M = monthly principal and interest payment
- P = loan amount
- r = monthly interest rate (annual rate divided by 12)
- n = total number of monthly payments (years × 12)
Taxes, insurance, PMI, and HOA fees are then added to that amount. Our mortgage calculator does all of this for you, but knowing the formula helps you check any quote you receive.
Example: A $350,000 Home With 10% Down
Here’s what the calculator shows for a buyer with these numbers:
- Home price: $350,000
- Down payment: $35,000 (10%)
- Loan amount: $315,000
- Interest rate: 7%, 30-year fixed
- Property tax: 1.1% per year
- Home insurance: $1,800 per year
- PMI: 0.5% per year
| Payment item | Monthly amount |
|---|---|
| Principal and interest | $2,095.70 |
| Property tax | $320.83 |
| Home insurance | $150.00 |
| PMI | $131.25 |
| Total | $2,697.79 |
Over 30 years, this buyer would pay about $439,453 in interest. The PMI would end after about 9 years and 7 months, when the balance reaches 78% of the original home value, assuming they make every payment on schedule.
How Small Changes Affect Your Payment
Using the same example, here’s what happens when you change one thing at a time:
| Change | New principal and interest | Effect |
|---|---|---|
| Rate drops from 7% to 6.5% | $1,991.01 | About $105 less per month |
| Down payment rises to 20% ($70,000) | $1,862.85 | About $233 less per month, and no PMI |
| 15-year term instead of 30 | $2,831.31 | About $736 more per month, but around $245,000 less interest in total |
Try these scenarios yourself in the mortgage calculator to see which one fits your budget best.
5 Ways to Lower Your Monthly Payment
- Improve your credit score before you apply. A higher score usually gets you a lower rate, and even half a percentage point makes a real difference over 30 years.
- Put more money down. A larger down payment reduces your loan amount, and reaching 20% removes PMI on a conventional loan.
- Compare several lenders. Rates and fees vary from lender to lender, so get at least three Loan Estimates.
- Shop for homeowners insurance. Premiums for the same home can differ a lot between insurers.
- Consider buying discount points. Paying points at closing lowers your rate. It only makes sense if you’ll keep the loan long enough to recover the upfront cost.
What This Calculator Doesn’t Include
To keep the estimate simple, the calculator assumes a fixed rate for the whole loan and does not include:
- Closing costs, which you pay once when you buy the home.
- FHA mortgage insurance, which works differently from PMI. FHA loans charge an upfront premium and an annual premium that, in many cases, lasts for the life of the loan.
- The VA funding fee.
- Rate changes on an adjustable-rate mortgage after the fixed period ends.
- Future increases in property taxes or insurance premiums.
Your lender’s Loan Estimate will give you exact figures for your situation.
A Note From José María
I’m José María, and I built this tool for Finanzasclave because I wanted readers to see the whole monthly payment, not just principal and interest. Taxes, insurance, and PMI can add hundreds of dollars a month, and many online estimates leave them out. My suggestion is to run the numbers with a slightly higher rate than the one you expect, so your budget still works if rates move before you lock.
Final Thoughts
A mortgage calculator is one of the most useful tools you can use before buying a home. It shows you what you can realistically afford, how much your down payment matters, and how the loan term and interest rate change your total cost. Use it to set a comfortable monthly budget first, then shop for a home and a lender that fit within it.
Frequently Asked Questions
How accurate is a mortgage calculator?
It’s accurate for principal and interest as long as the rate and loan amount are correct. Taxes, insurance, and PMI are estimates, so your final payment may be slightly different. Your Loan Estimate will show the exact amount.
What is a good monthly mortgage payment?
Many lenders and financial planners suggest keeping your total housing payment at or below about 28% of your gross monthly income. Lenders also look at your total monthly debts compared with your income.
When does PMI go away?
On conventional loans, PMI ends automatically when your balance is scheduled to reach 78% of the home’s original value. You can ask your lender to remove it earlier, once you reach 80%, if you meet their requirements.
Should I choose a 15-year or 30-year mortgage?
A 15-year loan costs much less in interest but has a higher monthly payment. A 30-year loan is easier on your monthly budget. Compare both in the calculator to see the difference with your own numbers.
Does the calculator work for refinancing?
Yes. Enter your home’s current value as the home price and the difference between that value and your new loan amount as the down payment. Use the rate and term of the new loan.
This mortgage calculator and article are for informational purposes only and are not financial advice. Results are estimates. Contact a licensed lender for exact rates, fees, and payments.