What is a free mortgage payment calculator?
A mortgage payment calculator estimates your monthly cost to buy a home. The best calculators include taxes, insurance, PMI, and HOA — not just principal and interest — so you see the same payment lenders use for approval. Ours also shows total interest, a full amortization schedule, and an affordability mode based on your income.
How to Use This Mortgage Calculator
- 1Enter the home price. Type or slide to the purchase price of the home you're considering.
- 2Set your down payment. Enter your down payment in dollars. A down payment of 20% or more avoids PMI.
- 3Add your interest rate and term. Use your quoted interest rate, or our indicative average, and choose a 15-, 20-, or 30-year term.
- 4Include taxes, insurance, and fees. Expand the advanced options to add property tax, homeowners insurance, PMI, and HOA dues for a complete payment.
- 5Review your results. See your full monthly payment, total interest, and amortization schedule update instantly.
What factors affect your monthly payment?
A mortgage payment is more than just principal and interest. The five components below — often abbreviated as PITI plus PMI and HOA — determine your true monthly cost of homeownership:
- Principal & interest: The core loan repayment. Larger loans, higher rates, and longer terms increase the interest you pay.
- Property taxes: Set by your local government as a percentage of your home's assessed value, typically collected monthly through escrow.
- Homeowners insurance: Protects your home and is usually required by lenders; premiums vary by location and coverage.
- PMI: Private mortgage insurance applies when your down payment is under 20% and is removed once you build enough equity.
- HOA dues: Monthly fees for condos and planned communities that cover shared amenities and maintenance.
How mortgage payments are calculated
Your principal and interest payment follows the standard amortization formula:
M = P · r(1 + r)n / ((1 + r)n − 1)
where M is the monthly payment, P is the loan principal, r is the monthly interest rate (annual rate ÷ 12), and n is the total number of payments (years × 12). Early in the loan, most of each payment goes toward interest; over time the balance shifts toward principal. The amortization schedule above shows this shift year by year.
Understanding PMI
Private mortgage insurance protects the lender, not you, if you stop making payments. On conventional loans it is generally required when your down payment is below 20% of the home's value, and it typically costs between 0.3% and 1.5% of the loan amount per year. The good news: once you reach roughly 20% equity — through payments or appreciation — you can usually request that PMI be removed, lowering your monthly payment. Our calculator adds PMI automatically when your down payment is under 20% and removes it at 20% or above.
The impact of interest rates
Even small rate changes have a large effect over a 30-year loan. On a $350,000 loan, a single percentage point can change your monthly payment by roughly $200 and your lifetime interest by tens of thousands of dollars. That's why shopping multiple lenders and improving your credit score before applying can be so valuable. Try nudging the interest-rate slider above to see how sensitive your payment is.
How much house can you afford?
Lenders commonly apply the 28/36 rule: your housing payment should stay under about 28% of your gross monthly income, and total debt payments under 36%. Switch the calculator to the Affordability tab to work backward from your income and debts to an estimated maximum home price. Remember to leave room in your budget for maintenance, closing costs, and an emergency fund rather than stretching to your absolute maximum.