Mortgage Payment Calculator (Monthly)
Buying a home? This calculator breaks down your true monthly cost: principal & interest (P&I), property taxes, homeowner's insurance, and PMI (if your down payment is under 20%). Enter your home price, down payment, loan term, and current rate to see exactly what you'll owe each month — and how much total interest you'll pay over the life of the loan.
When to use this calculator
- Estimating affordability before making an offer on a home
- Comparing 15-year vs. 30-year loan total interest costs
- Understanding how PMI adds to your payment when putting less than 20% down
- Planning your budget after locking in a specific interest rate
- Calculating your payoff date based on loan start month
- Evaluating the impact of a larger down payment on monthly costs
How it works
2 min readWhat is a mortgage payment?
A mortgage payment is the monthly amount you owe to repay a home loan, calculated as principal plus interest divided across your loan term. On a $400,000 home at 6.8% over 30 years, P&I alone totals roughly $2,348 monthly. Your actual payment includes property taxes, insurance, and PMI, significantly increasing the true monthly cost.
How It Works
This calculator uses the standard amortizing mortgage formula to compute your monthly principal & interest payment, then adds escrow items (taxes, insurance, PMI) for a true PITI total.
Formula
M = P · [r(1+r)^n] / [(1+r)^n − 1]
Where:
M = monthly P&I payment
P = principal loan amount (home price − down payment)
r = monthly interest rate = annual rate / 12
n = total number of payments = loan term in years × 12Example — $400,000 home, 10% down, 30-year, 6.8% rate:
Component Breakdown
| Component | Calculation |
|---|---|
| Principal & Interest | Amortization formula above |
| Property Tax | (Home Price × Tax Rate) / 12 |
| Home Insurance | Annual premium / 12 |
| PMI | (Loan Amount × PMI Rate) / 12 (only if down < 20%) |
PMI Note
Private Mortgage Insurance (PMI) is typically required when your down payment is less than 20% of the purchase price. PMI rates generally range from 0.2% to 2% of the original loan amount per year, depending on your credit score, loan type, and lender. Once your loan balance reaches 80% of the original home value, you can request PMI cancellation under the Homeowners Protection Act.
Limitations & When NOT to Rely Solely on This Calculator
Frequently asked questions
What is the current average 30-year mortgage rate in 2026?
As of early 2026, the average 30-year fixed mortgage rate is approximately 6.8%, based on Freddie Mac's Primary Mortgage Market Survey. Rates fluctuate weekly; always confirm the current rate with your lender before making financial decisions.
What does PITI stand for?
PITI stands for Principal, Interest, Taxes, and Insurance. It represents the full monthly housing cost most lenders use to qualify borrowers. This calculator computes all four components, plus PMI if applicable, giving you a complete monthly payment estimate.
How much does PMI cost and when can I remove it?
PMI typically costs 0.2%–2% of the original loan amount per year (often ~0.5% for well-qualified borrowers). You can request cancellation once your loan balance drops to 80% of the original purchase price. Lenders must automatically cancel it at 78% under the Homeowners Protection Act of 1998.
Is a 15-year or 30-year mortgage better?
A 15-year mortgage carries a lower interest rate (typically 0.5–0.75% less) and you pay far less total interest — often 50–60% less than a 30-year loan. However, monthly payments are roughly 40–50% higher. A 30-year loan offers lower monthly payments and more cash-flow flexibility but significantly higher lifetime interest costs.
What down payment do I need to avoid PMI?
A down payment of 20% or more of the home's purchase price eliminates the PMI requirement on conventional loans. Some loan programs (FHA, VA, USDA) have different rules: VA loans have no PMI at all, while FHA loans require mortgage insurance premiums regardless of down payment size.
How is the payoff date calculated?
The payoff date is the first payment date plus the total number of monthly payments (loan term in months). For example, a 30-year loan starting in January 2026 has 360 payments and a payoff date of December 2055. This assumes no extra payments are made.
What is a typical property tax rate in the US?
The US average effective property tax rate is roughly 0.9%–1.1% of the home's value per year, but it varies significantly: New Jersey averages ~2.2%, while Hawaii averages ~0.3%. Use your county assessor's website for an exact figure. The default in this calculator is 1.1%.
Does this calculator account for extra payments or lump-sum paydowns?
No. This tool calculates a standard amortizing schedule with fixed monthly payments. Making extra principal payments each month or year would reduce your total interest and shorten your payoff date — use a dedicated amortization schedule tool to model those scenarios.
What is a good debt-to-income (DTI) ratio for a mortgage?
Most conventional lenders prefer a total DTI (all monthly debt payments divided by gross monthly income) of 43% or lower. Some loan programs allow up to 50% with strong compensating factors. Your housing costs (PITI) alone should ideally stay below 28% of gross monthly income — a rule known as the 'front-end ratio.'
Are property taxes and insurance included in my mortgage payment?
They can be, through an escrow account. Most lenders require escrow for taxes and insurance when your down payment is below 20%. Your lender collects 1/12 of the annual amounts each month and pays the bills on your behalf. This calculator adds those estimates to show your full PITI payment.