What is the formula used to calculate my monthly mortgage payment?

The calculator uses the standard amortization formula: M = P × [r(1+r)^n] / [(1+r)^n – 1] , where M is your monthly payment, P is the loan amount, r is the monthly interest rate (annual rate divided by 12), and n is the total number of monthly payments (loan term in years times 12). Property tax, insurance, HOA, and PMI are then added on top of that amount.

How accurate is this mortgage calculator?

This calculator gives you a close estimate based on the numbers you enter. Actual payments may differ slightly because lenders may round differently, and costs like property tax and insurance can change each year. It does not include closing costs, points, or other one-time fees. Always confirm your exact payment with your lender before signing a loan.

When does PMI get removed from my conventional loan?

For conventional loans, PMI is automatically removed once your remaining loan balance drops to 78% of the original home value . The amortization schedule in this calculator reflects that by setting the PMI amount to zero once you reach that threshold.

What happens if I enter a property tax value of 20 or less?

If you type a number of 20 or less in the property tax field, the calculator treats it as a percentage of your home price instead of a dollar amount. For example, entering 1.2 on a $400,000 home would calculate annual property tax as $4,800. If you enter a number greater than 20, it is treated as the actual annual dollar amount.

Can I use this calculator for an adjustable-rate mortgage (ARM)?

This calculator is built for fixed-rate mortgages , meaning the interest rate stays the same for the entire loan. You can still use it to estimate the initial payment on an ARM by entering the starting rate, but it will not account for rate adjustments that happen later in the loan.

How does the FHA loan option work in this calculator?

When you select FHA, the calculator adds a 1.75% upfront mortgage insurance premium (UFMIP) to your loan amount. It also adds an annual MIP of 0.55% divided into monthly payments. This means your total loan amount will be slightly higher than the home price minus your down payment.

Why does my loan amount change when I switch to FHA or USDA?

FHA loans add a 1.75% upfront mortgage insurance premium, and USDA loans add a 1% upfront guarantee fee. These fees are rolled into the loan balance, so your loan amount increases. The calculator does this automatically when you select either loan type.

What is the difference between a 15-year and 30-year mortgage?

A 15-year mortgage has higher monthly payments but you pay much less interest over the life of the loan. A 30-year mortgage has lower monthly payments, making it easier on your budget, but you pay significantly more in total interest. Use this calculator to toggle between the two terms and compare the total cost side by side.

Can I edit the loan amount directly instead of using the down payment?

Yes. The loan amount field is editable. When you change it, the calculator automatically adjusts your down payment to match. For example, if your home price is $400,000 and you set the loan amount to $360,000, the down payment will update to $40,000 (10%).

What does the refinance option do differently?

When you select Refinance , the down payment field is hidden because it does not apply to refinancing. The home price label changes to "Home Value," and you enter your current home value and the new loan amount directly.

How do I read the amortization schedule?

Each row shows one payment period. The Payment column is your total principal and interest payment. The Principal column shows how much goes toward paying down the loan. The Interest column shows the lender's charge. The Balance column shows what you still owe after that payment. You can switch between monthly and yearly views using the toggle buttons above the table.

Why is most of my early payment going to interest instead of principal?

Interest is calculated on your remaining balance. At the start of the loan, your balance is at its highest, so the interest charge is large. As you make payments and the balance shrinks, less interest is charged and more of each payment goes toward principal. This is how standard loan amortization works.

Does this calculator include closing costs?

No. This calculator focuses on your monthly payment and amortization . Closing costs are one-time fees paid when you finalize the loan and are not included here. Common closing costs include appraisal fees, title insurance, origination fees, and prepaid taxes.

What is a good interest rate for a mortgage?

A "good" rate depends on current market conditions, your credit score, loan type, and down payment. Generally, the higher your credit score and the larger your down payment, the lower your rate will be. Compare offers from multiple lenders to find the best rate available to you. The default rate in this calculator is based on recent national averages.

How much house can I afford based on my income?

A common guideline is that your total monthly housing costs (mortgage, taxes, insurance, HOA) should not exceed 28% of your gross monthly income . Enter different home prices into this calculator and see if the total monthly payment fits within that range for your income.

Do VA loans really have no PMI?

Correct. VA loans do not require any private mortgage insurance , even with 0% down. This is one of the biggest benefits of a VA loan. However, there may be a one-time VA funding fee, which varies based on your down payment and whether it is your first VA loan.

What are HOA fees and should I include them?

HOA fees are monthly charges from a homeowners association that covers shared expenses like landscaping, amenities, or building maintenance. If the property you are buying has an HOA, enter the monthly fee so the calculator includes it in your total payment. If there is no HOA, leave it at zero.

Can I enter a custom loan term like 25 years?

Yes. While the calculator has quick buttons for 10, 15, 20, and 30 years, you can type any number between 1 and 50 in the loan term field. The calculator will adjust all results accordingly.

Mortgage Calculator - Free Monthly Payment Tool

Introduction

A mortgage is likely the biggest loan you will ever take out, so knowing your monthly payment before you commit is important. This mortgage calculator helps you estimate your monthly costs based on the home price, down payment, interest rate, and loan term you choose. It breaks down every part of your payment — including principal, interest, property taxes, homeowners insurance, HOA fees, and private mortgage insurance (PMI) — so you can see exactly where your money goes each month.

The calculator supports conventional, FHA, VA, and USDA loan types, each with their own rules for down payments and mortgage insurance. It also generates a full amortization schedule that shows how much principal and interest you pay with every single payment over the life of the loan. Visual charts help you see how your balance drops over time and how the split between principal and interest shifts as your loan matures. Whether you are buying your first home, upgrading, or refinancing, use this tool to compare different scenarios and find a payment that fits your budget.

How to Use Our Mortgage Calculator

Enter your home price, down payment, interest rate, and loan details below. The calculator will show your estimated monthly payment, a full cost breakdown, and a complete amortization schedule.

Buy or Refinance: Choose whether you are purchasing a new home or refinancing an existing mortgage. If you pick refinance, the down payment field will be hidden since it does not apply.

Loan Type: Select the type of mortgage you plan to use. Pick from Conventional, FHA, VA, or USDA. Each loan type has different rules for down payments, mortgage insurance, and fees, and the calculator will adjust automatically.

Home Price: Enter the purchase price of the home you want to buy. If you are refinancing, this is the current value of your home.

Down Payment: Enter how much money you will put down. You can type it as a dollar amount or as a percentage of the home price using the toggle buttons. The loan amount will update automatically based on what you enter here. Not sure how much to save? Try our down payment calculator to plan ahead.

Loan Amount: This is the total amount you will borrow. It fills in automatically based on your home price minus your down payment, but you can also edit it directly, and the down payment will adjust to match.

Interest Rate: Enter the annual interest rate for your mortgage. You can use the default value based on current average rates or type in the exact rate your lender has offered you. To understand the difference between your interest rate and the total cost of borrowing, check out our APR calculator.

Loan Term: Choose how many years you want to take to pay off the loan. Use the quick buttons for 10, 15, 20, or 30 years, or type in any custom term between 1 and 50 years.

Start Date: Pick the month and year you expect your mortgage payments to begin. This is used to calculate your payoff date and label each row in the amortization schedule.

Property Tax (Annual): Enter your yearly property tax bill in dollars. If you enter a number of 20 or less, the calculator treats it as a percentage of your home price instead. For a deeper look at property taxes, use our property tax calculator.

Homeowners Insurance (Annual): Enter the total amount you pay each year for homeowners insurance. The calculator divides this by 12 and adds it to your monthly payment estimate. You can estimate your premium with our homeowners insurance calculator.

Monthly HOA / Condo Fees: If your property has homeowners association or condo fees, enter the monthly amount here. If you have none, leave this at zero.

PMI Rate (Annual %): Enter the annual private mortgage insurance rate as a percentage. For conventional loans, PMI is required when your down payment is less than 20%. For FHA, VA, and USDA loans, the calculator applies the correct mortgage insurance rules automatically. To explore PMI costs in more detail, try our dedicated PMI calculator.

How a Mortgage Works

A mortgage is a loan you use to buy a home. You borrow money from a lender (usually a bank or credit union), and you pay it back over time with interest. The home itself serves as collateral, which means the lender can take the property if you stop making payments. Most people cannot afford to pay for a house all at once, so a mortgage makes homeownership possible by spreading the cost over many years.

Key Parts of a Mortgage Payment

Your monthly mortgage payment is made up of several parts, often called PITI:

Principal: This is the portion of your payment that goes toward paying down the actual loan balance. Early in the loan, only a small share of each payment goes to principal. Over time, that share grows.
Interest: This is the cost the lender charges you for borrowing the money. It is calculated as a percentage of your remaining balance. A lower interest rate means you pay less over the life of the loan. You can learn more about how interest accumulates with our compound interest calculator.
Property Tax: Local governments charge an annual tax based on your home's assessed value. This amount is usually divided by 12 and added to your monthly payment.
Homeowners Insurance: Lenders require you to insure your home against damage from fire, storms, and other hazards. Like property tax, this annual cost is split into monthly payments.

Down Payment and PMI

The down payment is the money you pay upfront when you buy a home. A larger down payment means a smaller loan and lower monthly payments. If your down payment is less than 20% of the home price on a conventional loan, your lender will require Private Mortgage Insurance (PMI). PMI protects the lender — not you — in case you default on the loan. PMI is automatically removed once your loan balance drops to 78% of the original home value.

Common Loan Types

Conventional: The most common type. Requires PMI if you put less than 20% down. Typically needs a credit score of 620 or higher.
FHA: Backed by the Federal Housing Administration. Allows down payments as low as 3.5% and is easier to qualify for, but charges an upfront mortgage insurance premium (UFMIP) of 1.75% plus an annual premium.
VA: Available to veterans, active-duty military, and eligible spouses. Requires no down payment and no PMI, making it one of the best loan options available.
USDA: Designed for homes in eligible rural areas. Requires no down payment but charges a 1% upfront guarantee fee and a 0.35% annual fee.

Loan Term

The loan term is how long you have to pay back the mortgage. A 30-year term is the most popular because it gives you the lowest monthly payment. A 15-year term has higher monthly payments but saves you a significant amount of money in interest over the life of the loan. For example, on a $320,000 loan at 6.875%, switching from a 30-year to a 15-year term can save you well over $200,000 in total interest. You can also explore how biweekly payments can shorten your term and reduce interest costs.

What Is an Amortization Schedule?

An amortization schedule is a table that shows every payment over the life of your loan. It breaks each payment into its principal and interest portions and shows your remaining balance after each payment. In the early years, most of your payment goes toward interest. As you pay down the balance, more and more of each payment goes toward principal. Understanding this schedule helps you see exactly where your money goes each month and how much you will pay in total by the end of the loan.

Tips for Getting a Better Mortgage

Improve your credit score. A higher score qualifies you for lower interest rates, which can save tens of thousands of dollars.
Save for a bigger down payment. Putting 20% or more down eliminates PMI and reduces your loan amount. Use our down payment calculator to set a savings target.
Compare multiple lenders. Rates and fees vary, so always get quotes from at least three lenders before choosing. Don't forget to factor in closing costs when comparing offers.
Consider the total cost, not just the monthly payment. A longer loan term lowers your payment but increases the total interest you pay over time. Use our mortgage payoff calculator or mortgage extra payment calculator to see how additional payments can save you money.
Know your budget. Before you start shopping, use a home affordability calculator to figure out what price range works for your income and expenses. Checking your debt-to-income ratio can also help you understand what lenders will approve.
Weigh renting vs. buying. If you are unsure whether homeownership is right for you financially, our rent vs. buy calculator can help you compare the long-term costs of each option.

Mortgage Calculator