Mortgage Payment Calculator

Calculate the monthly principal and interest payment, total interest and amortization schedule for a fixed-rate mortgage.

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■ Principal & Interest ■ Property Taxes ■ Home Insurance ■ Other Cost
House Price
Loan Amount
Total of 360 Mortgage Payments
Total Interest
Mortgage Payoff Date
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    Latest Mortgage Rates: 30 Years: 6.578% | 15 Years: 5.882% | 10 Years: 5.764%

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    Calculation Examples

    Calculation Case Result
    $300,000 loan, 30 years, 6.5% annual rate Monthly P&I: $1,896.20 | Total interest: $382,633
    $500,000 loan, 15 years, 5.5% annual rate Monthly P&I: $4,085.42 | Total interest: $235,375
    $250,000 loan, 30 years, 7.0% annual rate Monthly P&I: $1,663.26 | Total interest: $348,772, about 1.4 times the amount borrowed
    Extra $200/month on a $300,000 loan at 6.5% (30 years) Paid off after 277 payments (23.1 years) | Interest saved: about $103,400
    Mihail Doncenco
    Mihail Doncenco Site Creator & Calculator Expert

    Founder and developer of CalcMate. Builds and maintains every calculator on this site, focusing on formula accuracy and clear, practical results.

    How to Use the Mortgage Calculator

    Enter the loan amount (the purchase price minus your down payment), the annual interest rate and the loan term in years. The calculator converts the annual rate to a monthly rate (\(r = \text{annual rate} \div 12\)) and applies the fixed-rate annuity formula: \[M = P \frac{r(1+r)^n}{(1+r)^n - 1}\] Here \(P\) is the loan amount and \(n\) the number of monthly payments (years × 12). The output shows your monthly principal and interest (P&I) payment, the total interest over the full term and an amortization schedule that shows how the split between interest and principal shifts over time.

    This calculator covers principal and interest only. Your actual monthly housing payment (PITI) also includes property taxes, homeowners insurance and, if your down payment is under 20%, private mortgage insurance (PMI).

    Factors Affecting Mortgage Costs

    Four variables drive the cost of a mortgage: the loan amount (price minus down payment), the interest rate, the term (15, 20 or 30 years) and the loan type (fixed or adjustable rate). A bigger down payment lowers the loan amount and can remove the need for PMI. Rate and term matter most. On a $300,000 loan over 30 years, going from 6% to 7% raises the payment from $1,798.65 to $1,995.91 and total interest from $347,515 to $418,527, a difference of about $71,000. At 6.5%, a 15-year term costs $170,398 in interest against $382,633 for 30 years, which is 55% less, in exchange for a payment of $2,613.32 instead of $1,896.20.

    If your down payment is below 20%, expect PMI. The Urban Institute puts typical PMI at 0.46% to 1.50% of the loan amount per year, which is $115 to $375 a month on a $300,000 loan. Under the Homeowners Protection Act (12 U.S.C. § 4901 et seq.) you can ask to cancel it once your balance reaches 80% of the original home value, and your servicer must end it automatically at 78%.

    Mortgage amortization lifecycle: interest-heavy early payments shifting to principal-dominant later payments

    Useful Tips 💡

    • Compare offers by APR as well as the note rate. APR adds finance charges such as origination fees, discount points and mortgage insurance to the interest rate, so it shows the cost of borrowing better. It usually leaves out third-party fees like appraisal and title, and it assumes you keep the loan to the end of the term.
    • Ask each lender for a Loan Estimate. This standardized 3-page form (Regulation Z, 12 CFR Part 1026) itemizes fees and the APR, and lenders must provide it within three business days of your application.
    • Loans above the conforming limit ($832,750 for one-unit homes in most areas in 2026, up to $1,249,125 in high-cost areas, per FHFA) are jumbo loans and are often priced and underwritten differently.

    📋Steps to Calculate

    1. Enter the loan amount (home price minus your down payment).

    2. Enter the annual interest rate and the loan term in years.

    3. Optionally enter estimated annual property tax and homeowners insurance for a PITI estimate.

    4. Click "Calculate" to see your monthly P&I payment, amortization schedule and total interest.

    Mistakes to Avoid ⚠️

    1. Using the home price as the loan amount without subtracting the down payment. The loan amount is what you finance.
    2. Comparing loans by interest rate alone. A lower rate with high origination fees can cost more than a slightly higher rate without fees, and APR shows that.
    3. Ignoring the rest of PITI. PMI alone adds $115 to $375 a month on a $300,000 loan, and property tax and insurance come on top, so your real payment is well above P&I.
    4. Assuming a fixed-rate mortgage means a fixed total payment. Only the principal and interest part is fixed. Property tax and insurance change over time, so your total payment can rise.

    Practical Applications📊

    1. Compare loan scenarios side by side, such as 15 versus 30 years or two rate offers, by total interest and not just the monthly payment. A longer term lowers the payment but can double the interest cost.

    2. Find out how much extra principal is worth. Adding $200 a month to a $300,000 loan at 6.5% over 30 years ends the loan after 277 payments instead of 360 and saves about $103,400 in interest.

    3. Estimate your full PITI by adding monthly property tax and insurance to the P&I result. A traditional rule of thumb keeps housing costs under 28% of gross monthly income. Standard FHA limits are 31% for housing and 43% for all debts, and many conventional lenders accept more with strong credit.

    Questions and Answers

    Can I calculate a mortgage with taxes and insurance included?

    Yes, add them to the P&I result: monthly property tax is the yearly bill divided by 12, and monthly insurance is the annual premium divided by 12. Property tax depends heavily on location, and the Tax Foundation (2026) lists New Jersey, Illinois and Connecticut among the highest effective rates. At an assumed 1.0%, a $400,000 home pays $4,000 a year, or about $333 a month. Insurance premiums vary with location and coverage, so use real quotes. You can enter both figures in the optional fields of the calculator.

    How do extra principal payments affect the mortgage?

    Extra principal payments cut total interest and shorten the loan, because each payment lowers the balance on which later interest is charged. On $300,000 at 6.5% over 30 years, an extra $200 a month ends the loan after 277 payments, 83 months sooner, and saves about $103,400 in interest (from $382,633 to $279,185). The savings are largest early in the term, when most of each payment is interest. Check that your lender applies extra money to principal and does not charge a prepayment penalty.

    How is the monthly mortgage payment calculated?

    Insert the loan amount \(P\), the monthly rate \(r\) (annual rate divided by 12) and the number of payments \(n\) (years × 12) into the annuity formula \(M = P \dfrac{r(1+r)^n}{(1+r)^n - 1}\). For $300,000 at 6.5% over 30 years: \(r = 0.065 / 12 = 0.0054167\), \(n = 360\) and \((1+r)^{360} \approx 6.9918\). That gives \(M = 300{,}000 \times \dfrac{0.0054167 \times 6.9918}{6.9918 - 1} \approx 1{,}896.20\) dollars. Lenders use the same math for fixed-rate loan schedules.

    What does a mortgage calculator compute?

    A mortgage calculator computes the monthly principal and interest (P&I) payment of a fixed-rate loan with the annuity formula \(M = P \dfrac{r(1+r)^n}{(1+r)^n - 1}\). It also builds an amortization schedule that splits each payment into interest and principal and adds up the total interest over the term. It models P&I only. Your actual monthly cost (PITI) also includes property tax, homeowners insurance and, where applicable, PMI.

    What is PMI and when is it required?

    Private mortgage insurance (PMI) is usually required on conventional loans when your down payment is under 20%, which means a loan-to-value (LTV) ratio above 80%. It protects the lender, not you. The Urban Institute puts the cost at 0.46% to 1.50% of the loan amount per year. Under the Homeowners Protection Act you can ask to cancel PMI at 80% of the original home value, and your servicer must end it automatically at 78% of the original value on the scheduled balance, or at the midpoint of the term. FHA loans use a separate mortgage insurance premium (MIP) with different rules.

    What is the difference between interest rate and APR?

    The interest rate is the yearly cost of the loan itself, and the APR adds certain fees to it. APR includes finance charges such as origination fees, discount points and mortgage insurance premiums, but usually not third-party costs like appraisal or title fees. US lenders must disclose the APR under the Truth in Lending Act and Regulation Z (12 CFR Part 1026). Use APR to compare offers, and remember it assumes you keep the loan for the full term. If you sell or refinance sooner, upfront fees weigh more.

    What percentage of income should go toward a mortgage payment?

    A traditional rule of thumb is to keep total housing costs (PITI) under 28% of gross monthly income and total debt payments under 36%. These ratios are lender guidelines, not CFPB rules. Standard FHA limits are 31% for housing and 43% for total debt, and many conventional lenders accept higher ratios with strong credit or reserves. Whether a payment is affordable also depends on your living costs, job security, emergency savings and other goals.
    Disclaimer: This calculator is designed to provide helpful estimates for informational purposes. While we strive for accuracy, financial (or medical) results can vary based on local laws and individual circumstances. We recommend consulting with a professional advisor for critical decisions.