🏠 Mortgage Calculator

Calculate your monthly mortgage payment, total interest, and full amortization schedule — including taxes, insurance, PMI, and HOA fees.

Enter Loan Details

$
$
%/yr

Optional — Monthly Costs

$
$
%/yr
Auto-applied if down < 20%
$

Related Finance Tools

How to Use This Mortgage Calculator

  1. 1Enter your home price and down payment amount.
  2. 2Input the interest rate and select your loan term (30, 20, or 15 years).
  3. 3Optionally add property tax, insurance, PMI, and HOA for your true monthly cost.
  4. 4Click Calculate Payment to see your monthly breakdown instantly.
  5. 5View the full amortization schedule to see how every dollar is applied month by month.

Understanding Your Mortgage Payment

Your monthly mortgage payment is made up of several components. The principal and interest (P&I) portion pays down the loan itself, while taxes, insurance, and potentially PMI are added on top to form your total PITI payment.

The Mortgage Formula Explained

The standard formula for calculating your monthly P&I payment is:

M = P × [r(1+r)^n] ÷ [(1+r)^n − 1]

Where P = principal loan amount, r = monthly interest rate (annual rate ÷ 12), and n = number of payments (years × 12).

What Is PMI?

Private Mortgage Insurance (PMI) is required by most lenders when your down payment is less than 20% of the purchase price. PMI protects the lender in case you default. It typically costs between 0.5% and 1.5% of your loan amount annually and is automatically removed once you reach 20% equity.

30-Year vs. 15-Year Mortgage: Which Is Better?

A 30-year mortgage has lower monthly payments, making homeownership more accessible, but you'll pay significantly more interest over the life of the loan. A 15-year mortgage has higher monthly payments but you'll build equity faster and pay roughly 50–60% less in total interest. Use the calculator above to compare both options side by side.

Current Mortgage Rates (2025)

As of 2025, the average 30-year fixed mortgage rate in the US is approximately 6.5%–7.5%. Rates vary based on your credit score, loan-to-value ratio, lender, and loan type. Borrowers with credit scores above 740 typically qualify for the most competitive rates.

How Much House Can I Afford?

A common guideline is the 28/36 rule: your monthly housing costs should not exceed 28% of your gross monthly income, and your total debt payments should not exceed 36%. For example, on a $90,000 annual salary ($7,500/month), your maximum mortgage payment should be about $2,100/month.

Frequently Asked Questions

The formula is M = P × [r(1+r)^n] ÷ [(1+r)^n − 1], where P is your loan principal, r is the monthly interest rate, and n is the total number of monthly payments. Our calculator does this automatically once you enter your loan details.
In 2025, rates for 30-year fixed mortgages have ranged from about 6.5% to 7.5%. A rate below 6.75% is generally considered competitive. Improving your credit score and making a larger down payment are the best ways to secure a lower rate.
By federal law (Homeowners Protection Act), PMI must be automatically cancelled when your loan balance reaches 78% of the original home value. You can also request cancellation once you reach 80% LTV. Refinancing or getting a new appraisal showing increased value can help you reach this threshold faster.
The interest rate is the cost of borrowing the principal loan amount. The APR (Annual Percentage Rate) includes the interest rate plus other lender fees, origination costs, and points, expressed as a yearly rate. APR gives you a more complete picture of the loan's total cost.
Even small extra payments can save thousands. For a $350,000 loan at 7% for 30 years, paying an extra $100/month saves over $50,000 in interest and reduces the loan term by about 4 years. Extra payments go directly toward principal, reducing your balance faster.