Mortgage Calculator
Estimate your monthly mortgage payment including principal, interest, taxes, and insurance. Adjust any variable and see results instantly.
Mortgage Calculator Tool
Enter Your Details
Monthly Payment
$2,654
Amortization Schedule
Loan Balance vs. Cumulative Interest Paid
| Year | Beginning Balance | Principal Paid | Interest Paid | Ending Balance |
|---|---|---|---|---|
| 1 | $320,000 | $3,251 | $22,297 | $316,749 |
| 2 | $316,749 | $3,486 | $22,062 | $313,264 |
| 3 | $313,264 | $3,738 | $21,810 | $309,526 |
| 4 | $309,526 | $4,008 | $21,540 | $305,519 |
| 5 | $305,519 | $4,297 | $21,250 | $301,221 |
| 6 | $301,221 | $4,608 | $20,939 | $296,613 |
| 7 | $296,613 | $4,941 | $20,606 | $291,672 |
| 8 | $291,672 | $5,298 | $20,249 | $286,373 |
| 9 | $286,373 | $5,681 | $19,866 | $280,692 |
| 10 | $280,692 | $6,092 | $19,455 | $274,600 |
| 11 | $274,600 | $6,533 | $19,015 | $268,067 |
| 12 | $268,067 | $7,005 | $18,543 | $261,062 |
| 13 | $261,062 | $7,511 | $18,036 | $253,551 |
| 14 | $253,551 | $8,054 | $17,493 | $245,497 |
| 15 | $245,497 | $8,636 | $16,911 | $236,860 |
| 16 | $236,860 | $9,261 | $16,287 | $227,600 |
| 17 | $227,600 | $9,930 | $15,617 | $217,669 |
| 18 | $217,669 | $10,648 | $14,900 | $207,021 |
| 19 | $207,021 | $11,418 | $14,130 | $195,603 |
| 20 | $195,603 | $12,243 | $13,304 | $183,360 |
| 21 | $183,360 | $13,128 | $12,419 | $170,232 |
| 22 | $170,232 | $14,077 | $11,470 | $156,155 |
| 23 | $156,155 | $15,095 | $10,453 | $141,060 |
| 24 | $141,060 | $16,186 | $9,361 | $124,873 |
| 25 | $124,873 | $17,356 | $8,191 | $107,517 |
| 26 | $107,517 | $18,611 | $6,937 | $88,906 |
| 27 | $88,906 | $19,956 | $5,591 | $68,950 |
| 28 | $68,950 | $21,399 | $4,149 | $47,551 |
| 29 | $47,551 | $22,946 | $2,602 | $24,605 |
| 30 | $24,605 | $24,605 | $943 | $0 |
| Total | — | $319,998 | $446,426 | $0 |
How to Use the Mortgage Calculator
Enter your home price
Type the full purchase price of the home you are considering. This figure forms the base of every other calculation on the page. If you are comparing multiple properties, simply update this number to see how each one affects your monthly payment.
Set your down payment amount
Enter either a dollar figure or a percentage — the calculator updates both fields instantly. A down payment of at least 20% eliminates the need for private mortgage insurance (PMI), which can save you hundreds of dollars per month on a typical loan.
Choose your loan term
Select from 10, 15, 20, or 30-year terms using the segmented selector. A shorter term means higher monthly payments but far less total interest paid over the life of the loan. A 30-year term keeps payments lower but roughly doubles your total interest cost versus a 15-year loan.
Enter your current interest rate
Use your lender's quoted rate or the current national average for your loan type. Even a small change in rate has a major impact on your monthly payment and total cost. For a $400,000 loan at 30 years, the difference between 6.5% and 7.5% is over $250 per month.
Add taxes, insurance, and HOA for a full picture
The true cost of homeownership goes well beyond principal and interest. Property taxes, home insurance, PMI, and HOA fees can add $500–$1,000 or more to your monthly obligation. Fill in all optional fields to get the most accurate estimate of your total housing payment.
What Is a Mortgage and How Does It Work?
A mortgage is a type of secured loan used to purchase real estate. The property itself serves as collateral, meaning the lender can reclaim the home through foreclosure if the borrower fails to make payments. Most residential mortgages in the United States are structured as 15-year or 30-year loans with fixed monthly payments that include both principal repayment and interest charges.
Every monthly mortgage payment is split between principal and interest. In the early years of a home loan, the vast majority of each payment goes toward interest, with only a small portion reducing the actual loan balance. This structure is called amortization. As the years pass, the ratio shifts — more of your payment reduces the principal and less goes to interest. You can see this dynamic clearly in the amortization schedule above.
The two most common mortgage types are fixed-rate and adjustable-rate. A fixed-rate mortgage locks in the same interest rate and monthly payment for the full loan term, providing predictability and protection against rising rates. An adjustable-rate mortgage (ARM) starts with a lower introductory rate that can change periodically based on a market benchmark index, introducing both opportunity and risk.
Several factors influence the interest rate a lender offers you. Your credit score is the most significant — borrowers with scores above 740 typically receive the best available rates. The loan-to-value ratio (LTV), which compares your loan amount to the home's appraised value, also matters. A lower LTV means less risk for the lender, which can translate into a lower rate. Loan type, term length, and prevailing economic conditions all factor in as well.
Private mortgage insurance (PMI) is required on most conventional loans when the down payment is less than 20% of the purchase price. PMI protects the lender — not the borrower — in the event of default. It typically costs between 0.2% and 1% of the loan amount per year and is added to your monthly payment automatically. Once you have built 20% equity in the home (either through payments or appreciation), you can request that PMI be removed.
It is important to distinguish between mortgage pre-qualification and pre-approval. Pre-qualification is an informal estimate of how much you might be able to borrow, based on self-reported information. Pre-approval involves a formal application, a credit check, and income verification — and results in a conditional commitment from the lender. In competitive markets, sellers typically expect buyers to have pre-approval in hand before accepting an offer.
A 1% difference in interest rate on a $400,000 home loan can cost or save you over $80,000 in total interest over a 30-year term — the equivalent of a brand-new car.
Expert Tips for Getting the Best Mortgage Rate
Improve your credit score before applying
Even moving from a 680 to a 740 credit score can lower your mortgage rate by 0.5% or more. Pay down revolving balances, avoid opening new credit lines, and dispute any errors on your credit report at least 6 months before applying.
Save for a larger down payment to avoid PMI
Reaching 20% down eliminates private mortgage insurance, which can cost $100–$300 per month on a typical loan. If you cannot reach 20%, consider a lender-paid PMI option or a piggyback loan structure instead.
Compare at least 3 lenders before committing
Research consistently shows that borrowers who get multiple quotes save thousands over the life of their loan. Rates, fees, and closing costs vary significantly between banks, credit unions, and online mortgage lenders.
Consider a 15-year term if you can afford higher payments
A 15-year mortgage typically carries a lower interest rate than a 30-year loan and cuts total interest paid by more than half. The monthly payment is higher, but the equity you build is substantially faster.
Lock your rate when the market dips
Mortgage rates fluctuate daily based on bond market conditions. If your lender offers a rate lock, use it when rates dip to a level you are comfortable with — typically for 30, 45, or 60 days while you close.
Factor in closing costs, not just monthly payments
Closing costs average 2–5% of the loan amount and include lender fees, title insurance, appraisal, and prepaid items. On a $400,000 home, that is $8,000–$20,000 due at signing — a number many first-time buyers underestimate.
Fixed-Rate vs Adjustable-Rate Mortgage — Which Is Right for You?
| Feature | Fixed-Rate | Adjustable-Rate (ARM) |
|---|---|---|
| Interest Rate | Stays the same for the full loan term | Starts low, adjusts periodically after intro period |
| Monthly Payment | Consistent and predictable every month | Can rise or fall based on market index |
| Best For | Long-term homeowners who value stability | Buyers who plan to sell or refinance within 5–7 years |
| Risk Level | Low — no exposure to rate changes | Medium to high — payment uncertainty after intro period |
| Long-Term Cost | Predictable total interest from day one | Lower if rates fall, higher if rates rise |
Interest Rate
Monthly Payment
Best For
Risk Level
Long-Term Cost
For most buyers planning to stay in their home longer than seven years, a fixed-rate mortgage offers the clearest long-term value. If you expect to sell or refinance before the ARM adjusts, the lower introductory rate may save you money in the short term.
How Much House Can You Afford?
The most widely used guideline for housing affordability is the 28/36 rule. It states that your monthly housing costs — including principal, interest, taxes, and insurance — should not exceed 28% of your gross monthly income. Additionally, your total debt obligations, including housing, car payments, student loans, and credit cards, should stay below 36% of gross income.
Lenders evaluate your debt-to-income (DTI) ratio during the mortgage application process. Most conventional lenders prefer a DTI of 43% or lower, though some programs allow up to 50% with compensating factors such as strong reserves or a high credit score. A lower DTI not only helps you qualify but typically leads to better loan terms and lower rates.
The mortgage calculator above gives you the monthly payment for a specific loan scenario. To work backwards — starting with your income and expenses to find a target home price — use our dedicated Mortgage Affordability Calculator. Together, both tools give you a complete picture of what you can realistically borrow and what it will cost you monthly.
Remember that lender approval and personal affordability are different thresholds. Being approved for a $600,000 mortgage does not necessarily mean you should borrow that much. Use the 28% housing cost rule as your own personal ceiling, not the maximum a lender is willing to offer.
Try Our Mortgage Affordability Calculator
Enter your income, debts, and down payment to find your maximum home price.
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Use ToolMortgage Calculator — Frequently Asked Questions
This calculator uses the standard amortization formula used by lenders worldwide, so it produces highly accurate estimates for principal and interest. Property taxes, insurance, and HOA figures are based on the values you enter, so accuracy for those depends on how closely your inputs match your actual local costs. Always verify with a licensed mortgage professional before making a financial commitment.
Yes. When you enter your annual property tax and annual home insurance figures, the calculator divides them by 12 and adds them to your monthly total. This gives you a full PITI estimate — principal, interest, taxes, and insurance — rather than just the basic loan payment. You can also add HOA fees for an even more complete picture.
Private mortgage insurance (PMI) is required on conventional loans when your down payment is less than 20% of the purchase price. It protects the lender — not you — if you default. PMI typically costs between 0.2% and 1% of the loan amount per year. Once your equity reaches 20%, you can request that your lender cancel PMI, and by law it must be removed automatically when equity reaches 22%.
A shorter loan term means higher monthly payments but significantly less total interest. A 15-year mortgage at 7% will have a monthly payment roughly 40% higher than a 30-year loan, but you will pay about half as much total interest. A 30-year term keeps payments manageable and frees up cash flow, which is why it remains the most popular choice for first-time buyers.
Most conventional lenders require a minimum credit score of 620 to qualify, but the best rates — typically reserved for borrowers in the top tier — go to those with scores of 740 or above. FHA loans allow scores as low as 580 with a 3.5% down payment. Improving your score by even 20–30 points before applying can meaningfully lower your rate and reduce total interest paid.
An amortization schedule is a complete table showing how each payment is split between principal and interest over the life of the loan. In the early years, most of each payment covers interest. As the loan ages, more of each payment goes toward reducing the balance. The schedule also shows your remaining loan balance at the end of each period. You can view the full year-by-year schedule for your loan using the toggle above.
The right choice depends on your financial situation and priorities. A 15-year mortgage saves a substantial amount in interest and builds equity faster, but the higher monthly payment requires a stable, sufficient income. A 30-year mortgage provides lower, more manageable payments and preserves cash flow — but costs considerably more in interest over time. A useful middle ground is to take a 30-year mortgage but make extra principal payments whenever possible.
Conventional loans typically require a minimum 3–5% down payment, though you will need at least 20% to avoid PMI. FHA loans require as little as 3.5% down with a qualifying credit score. VA loans and USDA loans offer zero-down options for eligible borrowers. A larger down payment reduces your loan balance, lowers your monthly payment, and can qualify you for a better interest rate.