Use this free mortgage calculator to estimate your total monthly payment on a home loan — principal, interest, property taxes, homeowners insurance, PMI and HOA dues, all in one number. Enter your home price, down payment, term and rate below to see your full monthly cost, a visual breakdown of where each dollar goes, and a year-by-year amortization schedule.
How to use this mortgage calculator
The calculator needs five numbers to estimate your total monthly payment: your home’s price, your down payment, the loan term, the interest rate, and your ongoing costs (property tax, insurance, PMI and HOA dues). Here’s what each field means and where to find a realistic number.
Home price
Enter the purchase price of the home, not the amount you’re borrowing. The calculator subtracts your down payment automatically to arrive at your loan amount.
Down payment
Switch between dollars and percent depending on how you’re thinking about it. Down payment size matters beyond just your loan amount: fall below 20% on a conventional loan and the calculator automatically includes an estimated PMI cost, and it estimates when that PMI would end.
Loan term
Most buyers choose 30 years for the lower payment or 15 years for the lower total interest cost. Use the preset buttons or enter a custom term if you’re comparing something less common, like a 20-year or 10-year loan.
Interest rate
Enter the rate you’ve been quoted, or a realistic estimate based on current market averages and your credit profile if you haven’t started shopping yet. This is the interest rate, not the APR — APR bundles in certain fees and will slightly overstate your monthly payment if you use it here.
Property tax, homeowners insurance, PMI and HOA
Open the “Taxes, insurance & HOA” section to refine these. Property tax can be entered as a percentage of home value per year (a reasonable estimate if you don’t know your local rate) or as a flat dollar amount if you already have a number from a listing or your county assessor. Homeowners insurance and HOA dues are typically available from a quote or the property listing. PMI is estimated automatically based on your down payment and loan amount, using a typical annual rate you can adjust.
How your mortgage payment is calculated
Your monthly mortgage payment is really several separate costs bundled into one bill, often abbreviated PITI:
- Principal — the portion of your payment that reduces your actual loan balance.
- Interest — what the lender charges you for the loan, calculated on your current balance.
- Taxes — property taxes, usually collected monthly through an escrow account and paid to your local government on your behalf.
- Insurance — homeowners insurance, plus private mortgage insurance (PMI) if your down payment is below 20% on a conventional loan.
The principal and interest portion is calculated with the standard amortization formula:
Payment = P × [ r(1 + r)n ] ÷ [ (1 + r)n − 1 ]
where P is your loan amount (home price minus down payment), r is the monthly interest rate (annual rate ÷ 12), and n is the total number of monthly payments.
Take a $400,000 home with 10% down ($40,000), financed at 6.7% over 30 years. The loan amount is $360,000, the monthly rate is 6.7 ÷ 12 ÷ 100 = 0.005583, and n is 360. Run those through the formula and the principal-and-interest payment comes to about $2,323. Add roughly $367 a month in property tax (1.1% of home value per year), $150 in homeowners insurance, and about $165 in PMI, and the total monthly payment lands around $3,005 — almost 30% higher than the principal-and-interest figure alone. This is exactly why comparing the “P&I” number lenders sometimes lead with can be misleading; the calculator above always shows your full payment.
Today’s mortgage rates
As of August 20, 2026, Freddie Mac’s Primary Mortgage Market Survey put the average 30-year fixed mortgage rate at 6.65% and the average 15-year fixed rate at 5.95%. Rates move week to week with the broader bond market, so treat these as a starting point for your estimate rather than what you’ll be personally offered — your actual rate depends heavily on the factors below.
What determines the rate you’re offered
- Credit score. The single largest lever on a conventional mortgage rate. Borrowers with scores above 740 typically get the best pricing tier; scores below 620 usually can’t qualify for a conventional loan at all.
- Down payment size. A larger down payment lowers the lender’s risk and can improve your rate, on top of eliminating PMI once you cross 20%.
- Loan term. Shorter terms (15-year) generally carry lower rates than longer terms (30-year), because the lender is exposed to your credit risk for less time.
- Debt-to-income ratio. Lenders want your total monthly debt payments, including the new mortgage, to generally stay under 36% to 43% of gross monthly income.
- Loan type. Conventional, FHA, VA and jumbo loans are priced differently, and government-backed programs like FHA and VA can offer competitive rates with more flexible qualification.
- Discount points. Paying an upfront fee at closing to “buy down” your rate can make sense if you’re staying in the home long enough to recoup the cost through lower payments.
15-year vs. 30-year: how term changes your payment
Term is the single biggest lever on your monthly payment, and the trade-off is stark. On a $400,000 loan at recent average rates:
| Term | Rate used | Monthly P&I | Total interest over the life of the loan |
|---|---|---|---|
| 30-year fixed | 6.65% | ~$2,568 | ~$524,400 |
| 15-year fixed | 5.95% | ~$3,365 | ~$205,600 |
The 15-year loan costs about $797 more per month, but saves roughly $318,800 in total interest over the life of the loan — a trade of monthly cash flow for long-term cost. Run both terms through the calculator above with your own numbers to see where the breakeven sits for your budget.
How your down payment affects PMI
Private mortgage insurance protects the lender, not you, and it’s required on most conventional loans when your down payment is below 20% of the home’s price. It typically costs between 0.3% and 1.5% of your loan amount per year, and it’s added to your monthly payment until you reach roughly 22% equity, at which point it’s required by federal law to cancel automatically (you can also request cancellation once you hit 20% equity).
On that same $400,000 home, here’s how the down payment size changes what you pay before you even count interest rate:
| Down payment | Loan amount | Estimated PMI | Notes |
|---|---|---|---|
| 5% ($20,000) | $380,000 | ~$174/mo | Higher PMI rate; more time to reach 22% equity |
| 10% ($40,000) | $360,000 | ~$165/mo | Common starting point for first-time buyers |
| 20% ($80,000) | $320,000 | $0 | No PMI required on a conventional loan |
Waiting years to save a full 20% isn’t always the right call, though — if home prices or rents are rising faster than you can save, buying sooner with PMI and refinancing or requesting cancellation later can come out ahead. The calculator above models this automatically: toggle your down payment and watch the PMI estimate and its projected end date update.
Tips to lower your monthly mortgage payment
- Put more down if you can. Every dollar above the 20% threshold also eliminates PMI, which is pure savings on top of a smaller loan balance.
- Shop multiple lenders. Rates and fees vary meaningfully between lenders for the same borrower. Multiple mortgage inquiries within a short window (typically 14 to 45 days) count as a single inquiry for credit scoring purposes, so rate shopping is close to free.
- Improve your credit before you apply. Paying down revolving balances and correcting report errors can move you into a better pricing tier in a matter of weeks. See our guide to improving your credit score for the fastest legitimate ways to do it.
- Consider a longer term if cash flow is tight. A 30-year term costs more in total interest than a 15-year term, but it’s reversible in spirit — you can always pay extra toward principal later without being locked into the higher required payment now.
- Ask about discount points. If you’re confident you’ll stay in the home for years, paying points upfront to lower your rate can pay for itself.
- Appeal your property tax assessment if it looks too high. Many counties allow homeowners to contest an assessment, which can meaningfully lower the tax portion of your payment.
What this calculator doesn’t include
- Closing costs. Typically 2% to 5% of the loan amount, due at closing rather than folded into the monthly payment shown here.
- Extra or accelerated payments. This calculator estimates your standard scheduled payment. To model paying extra toward principal, use the loan calculator, which supports monthly, annual and one-time extra payments.
- Variable rates. The math assumes a fixed rate for the full term. For an adjustable-rate mortgage, run the calculator once at your introductory rate and again at the highest rate your loan documents allow, to see your realistic range.
- PMI cancellation precision. The PMI end-date estimate assumes on-time payments and no change in home value. Your servicer’s actual cancellation date may differ slightly.
- HOA increases, tax reassessments, or insurance premium changes. These figures are treated as flat for the life of the loan, but in reality they typically rise over time.
Want to model extra payments or a non-mortgage loan? The loan calculator handles extra monthly, annual and one-time payments and works for personal loans, auto loans and home equity loans too. And if you’re earlier in the process, our guide to how a mortgage works walks through loan types, affordability, and the full application process.
Frequently asked questions
How accurate is this mortgage calculator?
The principal-and-interest math uses the same standard amortization formula every mortgage lender uses, so it should match your lender’s figures closely. Property tax, insurance, PMI and HOA are estimates based on the numbers you enter, since actual escrow amounts depend on your specific lender, county and insurer. Treat the total as accurate for planning, and your official Loan Estimate as authoritative for a specific offer.
What’s a good monthly mortgage payment?
A common guideline is that your total housing costs, including principal, interest, taxes, insurance and HOA, shouldn’t exceed 28% of your gross monthly income, and your total debt payments shouldn’t exceed 36% to 43%. Lenders will often approve more than this, but “approved” and “comfortable” are different things — run your own budget rather than maxing out what a lender offers.
Should I use the interest rate or the APR in this calculator?
Use the interest rate. APR bundles in certain upfront fees and will produce a monthly payment estimate that’s slightly too high. APR is the better number for comparing two loan offers against each other, since it exposes a low rate that’s hiding a large origination fee.
Why did my estimated PMI disappear when I raised my down payment?
PMI on a conventional loan is generally required only when your down payment is below 20% of the home’s price. Once your down payment reaches 20%, the calculator assumes PMI isn’t required and removes it from your monthly total automatically.
Does this calculator include closing costs?
No. Closing costs, typically 2% to 5% of the loan amount, are a separate one-time expense due at closing, not part of your recurring monthly payment. Budget for them in addition to your down payment.
What is the difference between this calculator and the loan calculator?
This mortgage calculator is built specifically for home purchases: it includes property tax, homeowners insurance, PMI and HOA dues alongside principal and interest, so you see your true monthly cost. The loan calculator is a more general tool for any fixed-rate installment loan and supports modeling extra payments, which this calculator does not.
How is my property tax estimated if I don’t know my local rate?
If you don’t have an exact figure, entering property tax as a percentage of your home’s value per year gives a reasonable planning estimate; the calculator defaults to a typical national rate. For an exact number, check a current listing for the home or your county assessor’s website.
Can I use this calculator for a refinance?
Yes, with one adjustment: enter your current home value as the “home price” and your remaining loan balance in place of a down payment (i.e., set the down payment so the loan amount matches your payoff balance), then enter your new prospective rate and term. It’ll estimate your new payment the same way.
See the mortgage rates you’d actually be offered
This calculator shows what a mortgage costs at a given rate. The next step is finding out what rate you actually qualify for. Compare offers from multiple lenders on Loans.net in a few minutes.
Explore mortgage optionsRelated calculators and guides
- How does a mortgage work? — loan types, affordability, credit score needs and the application process
- Loan calculator — a general calculator that supports extra payments, for mortgages, auto loans, personal loans and more
- Improve your credit — move up a pricing tier before you apply
- Home equity loans — borrowing against a home you already own
- Understanding your credit score — how it’s calculated and what it means for loan pricing
- Debt consolidation — combining balances into one payment
This calculator provides estimates for planning purposes only and is not a loan offer or a guarantee of the rate, terms, taxes or insurance costs you’ll be able to obtain. Actual mortgage payments depend on your lender, credit profile, loan program, local tax rates and insurance premiums. Loans.net is a loan comparison marketplace, not a lender.
Last updated: August 2026. Rate figures cited on this page reflect Freddie Mac’s Primary Mortgage Market Survey as of August 20, 2026, and change weekly; they are provided for context only and are not an offer of credit.