Mortgage Calculator
Calculate your monthly mortgage payment, full amortization schedule, and total interest paid. Enter your home price, down payment, loan term, and interest rate below.
Monthly Breakdown
Loan Summary
Payment Breakdown
Amortization Schedule (Year-by-Year)
| Year | Principal Paid | Interest Paid | Balance Remaining |
|---|
How to Use This Mortgage Calculator
- Enter the Home Price — the full purchase price of the property.
- Set your Down Payment — enter a dollar amount or click the % button to enter a percentage. The calculator keeps both values in sync.
- Choose a Loan Term — 30, 20, 15, or 10 years. Shorter terms mean higher payments but much less total interest.
- Enter the Annual Interest Rate — check current rates in the sidebar. The national 30-year average is ~6.8% as of mid-2026.
- Optionally add Property Tax ($/year), Home Insurance ($/year), and PMI (% of loan/year). PMI is auto-suggested at 0.85% if your down payment is below 20%.
- Click "Calculate Payment" to see your monthly breakdown, loan summary, amortization schedule, and payment pie chart.
How Monthly Mortgage Payments Are Calculated
Your monthly principal and interest (P&I) payment is calculated using the standard fixed-rate mortgage amortization formula:
Where:
M = monthly P&I payment
P = loan principal (home price − down payment)
r = monthly interest rate = (annual rate ÷ 100) ÷ 12
n = total number of payments = loan term (years) × 12
For example, on a $320,000 loan at 6.8% for 30 years: r = 0.068/12 = 0.005667, n = 360. Monthly P&I = $320,000 × [0.005667 × (1.005667)^360] / [(1.005667)^360 − 1] = $2,088/month. Over 30 years, you pay $431,592 total — meaning $111,592 in interest on top of the $320,000 principal.
Your total monthly payment adds property tax (÷ 12), home insurance (÷ 12), and PMI (loan balance × PMI rate ÷ 12) to the P&I figure above.
Mortgage Payment by Loan Amount
Monthly principal & interest payments for a 30-year fixed-rate mortgage at various loan amounts and interest rates:
| Loan Amount | 3.0% Rate | 5.0% Rate | 6.8% Rate | 7.0% Rate |
|---|---|---|---|---|
| $100,000 | $422 | $537 | $653 | $665 |
| $200,000 | $843 | $1,074 | $1,305 | $1,331 |
| $300,000 | $1,265 | $1,610 | $1,958 | $1,996 |
| $400,000 | $1,686 | $2,147 | $2,610 | $2,661 |
| $500,000 | $2,108 | $2,684 | $3,263 | $3,327 |
Note: P&I only. Does not include property tax, insurance, or PMI. Current 30-year national average rate is approximately 6.8% (Freddie Mac, July 2026).
30-Year vs 15-Year Mortgage: Which Should You Choose?
The choice between a 30-year and 15-year mortgage is one of the most important financial decisions a homebuyer makes:
| Factor | 30-Year Mortgage | 15-Year Mortgage |
|---|---|---|
| Monthly Payment | Lower (~40% less) | Higher |
| Total Interest Paid | Much higher (2–3× more) | Significantly lower |
| Rate (avg. 2026) | ~6.8% | ~6.1% |
| Equity Building | Slower | Faster |
| Cash Flow Flexibility | Higher (lower payment) | Lower (higher payment) |
| Best For | First-time buyers, tight budgets | Refinancers, high earners |
Example: On a $300,000 loan, a 30-year at 6.8% costs $1,958/mo with $405,000 in total interest. A 15-year at 6.1% costs $2,548/mo but only $158,640 in total interest — a savings of over $246,000. The right choice depends on your income stability, other financial goals, and how long you plan to stay in the home.
What Is PMI and When Can You Remove It?
Private Mortgage Insurance (PMI) is required on conventional loans when your down payment is less than 20% of the home's purchase price. It protects the lender — not you — in case you default.
- Cost: Typically 0.5%–1.5% of the original loan amount per year, added to your monthly payment. On a $300,000 loan at 0.85% PMI, that's $212/month.
- How to avoid it: Put 20% or more down, use a piggyback loan (80/10/10), or look for lender-paid PMI programs.
- When it's removed: Under the federal Homeowners Protection Act (HPA), lenders must automatically cancel PMI when your loan balance reaches 78% of the original home value (i.e., 22% equity). You can request early cancellation at 80% LTV (20% equity) if you have a good payment history.
- FHA loans: FHA mortgage insurance (MIP) works differently — if your down payment is less than 10%, MIP lasts for the life of the loan. This is a key reason many FHA borrowers refinance into a conventional loan once they reach 20% equity.
Frequently Asked Questions
Data sources: Freddie Mac Primary Mortgage Market Survey (PMMS) July 2026, Consumer Financial Protection Bureau (CFPB) mortgage disclosures, Fannie Mae HomeReady guidelines, HUD FHA Handbook 4000.1, National Association of Realtors (NAR) 2026 Home Buyer and Seller Generational Trends Report, Bankrate Mortgage Rate Survey July 2026.
Free Online Calculators
Current Average Mortgage Rates (2026)
| Loan Type | Avg. Rate | Trend |
|---|---|---|
| 30-yr Fixed | 6.80% | ↔ Stable |
| 20-yr Fixed | 6.50% | ↔ Stable |
| 15-yr Fixed | 6.10% | ↓ Easing |
| 5/1 ARM | 6.30% | ↑ Rising |
| 10-yr Fixed | 6.05% | ↓ Easing |
Source: Freddie Mac PMMS, July 2026. Rates vary by credit score, lender, and loan size. For informational purposes only.
Mortgage Quick Facts
- A 20% down payment eliminates PMI and typically gets you a better rate.
- Each 0.5% rate reduction on a $300K loan saves ~$90/month or ~$32,000 over 30 years.
- The 28/36 rule: mortgage payment should be ≤ 28% of gross monthly income; total debt ≤ 36%.
- Discount points: paying 1% of loan upfront typically lowers your rate by ~0.25%.
- A 760+ credit score qualifies for the best mortgage rates available.
- Making one extra payment per year on a 30-yr mortgage can cut 4–6 years off the loan.
