Mortgage Calculator
Free online mortgage calculator. Enter home price, down payment, interest rate, and loan term to calculate monthly payment with taxes, insurance, and PMI. See full amortization schedule.
Mortgage Calculator
Calculate your monthly mortgage payment including principal, interest, taxes, insurance, and PMI. See a full year-by-year amortization schedule.
How It Works
Your total monthly mortgage payment is made up of several components commonly referred to as PITI: Principal, Interest, Taxes, and Insurance. Property taxes and homeowners insurance are divided into 12 equal monthly installments and added to your core P&I payment.
Total = P&I + Tax + Insurance + PMI
The principal and interest (P&I) portion is calculated using the standard mortgage amortization formula:
M = P × r(1+r)n / [(1+r)n − 1]
P = loan amount (home price minus down payment)
r = monthly interest rate (annual rate ÷ 12)
n = total number of monthly payments (years × 12)
Property tax, homeowners insurance, and PMI (if your down payment is less than 20%) are added to the P&I payment to give you the full monthly amount.
Mortgage Basics
Fixed-Rate Mortgage: Your interest rate stays the same for the entire loan term. This gives you predictable payments and protection against rising rates. The most common options are 15-year and 30-year fixed loans.
Adjustable-Rate Mortgage (ARM): The interest rate is fixed for an initial period (e.g., 5 or 7 years) and then adjusts periodically based on a market index. ARMs typically start with a lower rate but carry the risk of higher payments in the future.
FHA Loan: Backed by the Federal Housing Administration, FHA loans allow down payments as low as 3.5% and are accessible to borrowers with lower credit scores. They require mortgage insurance premiums (MIP) for the life of the loan.
VA Loan: Available to eligible veterans, active-duty service members, and surviving spouses. VA loans require no down payment and no PMI, and often come with competitive interest rates.
Tips to Get the Best Mortgage
Improve your credit score. Borrowers with scores above 740 typically qualify for the lowest rates. Even a 0.5% rate reduction on a $300,000 loan saves tens of thousands of dollars in interest over 30 years.
Keep your debt-to-income ratio low. Most lenders prefer a total DTI (all monthly debt payments divided by gross monthly income) of 43% or less. Paying down existing debt before applying can significantly improve your loan terms.
Shop multiple lenders. Rate quotes vary between banks, credit unions, and mortgage brokers. Getting at least three quotes before committing can save you thousands — even a 0.25% difference matters on a large loan.
Consider discount points. You can pay upfront points (1 point = 1% of the loan) to permanently lower your interest rate. This makes sense if you plan to stay in the home long enough to recoup the upfront cost through lower monthly payments.
Recommended Resources
Get up to 5 mortgage offers in minutes. LendingTree connects you with competing lenders so you can compare rates, fees, and terms side by side — borrowers save an average of $35,000 over the life of their loan.
See today's live mortgage rates from top national lenders updated daily. Compare 30-year fixed, 15-year fixed, and ARM rates. Use their calculators to estimate monthly payments and total interest over the life of your loan.
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Understanding Mortgage Payments
A mortgage payment consists of principal, interest, taxes, and insurance (PITI). The principal and interest portion is calculated using the loan amortization formula: M = P[r(1+r)^n]/[(1+r)^n-1], where M is the monthly payment, P is the loan amount, r is the monthly interest rate, and n is the total number of payments.
For a $300,000 loan at 6.5% interest over 30 years: r = 0.065/12 = 0.00542, n = 360. The monthly P&I payment is $1,896. Add property taxes (about $250/month for a $350,000 home with 0.85% tax rate) and homeowner's insurance ($100-200/month) for total PITI of approximately $2,250-$2,350.
If your down payment is less than 20%, you'll also pay Private Mortgage Insurance (PMI), typically 0.5-1% of the loan amount annually. On a $300,000 loan, that's $125-$250 per month extra until you reach 20% equity.
How Amortization Works
Amortization is the process of paying off your mortgage through scheduled payments over time. Each payment covers interest due plus some principal. Early in the loan, most of your payment goes to interest. Over time, more goes to principal.
On a $300,000 loan at 6.5% for 30 years with $1,896 monthly P&I: Your first payment includes $1,625 in interest and only $271 toward principal. By payment 180 (15 years), it's about even: $948 interest, $948 principal. By the final years, most goes to principal.
This is why making extra principal payments early in the loan is so powerful. An extra $100/month from the start could save you $60,000+ in interest and pay off the loan 5 years early. Even occasional lump sums toward principal help significantly. Just ensure your lender applies extra payments to principal, not future payments.
Comparing Mortgage Options
Choosing the right mortgage involves balancing monthly payments, total interest, and risk tolerance. Fixed-rate mortgages lock in your interest rate for the entire term, providing payment stability. Adjustable-rate mortgages (ARMs) offer lower initial rates that can change after an introductory period.
The 30-year vs 15-year decision significantly impacts total cost. A $300,000 loan at 6.5%: the 30-year option costs $1,896/month with $382,633 total interest. The 15-year option at 6% costs $2,532/month but only $155,683 total interest — a savings of $226,950. However, the higher monthly payment reduces financial flexibility.
Consider also: conventional loans (require good credit, often 3-20% down), FHA loans (lower credit requirements, 3.5% down, but require mortgage insurance), VA loans (0% down for veterans), and jumbo loans (for amounts exceeding conforming limits). Use this calculator to compare scenarios.
Monthly Payment by Loan Amount (30yr, 6.5%)
| Home Price | 20% Down | Loan Amount | P&I Payment |
|---|---|---|---|
| $250,000 | $50,000 | $200,000 | $1,264 |
| $350,000 | $70,000 | $280,000 | $1,770 |
| $450,000 | $90,000 | $360,000 | $2,275 |
| $550,000 | $110,000 | $440,000 | $2,781 |
| $700,000 | $140,000 | $560,000 | $3,539 |
15-Year vs 30-Year Mortgage ($300,000 Loan)
| Term | Rate | Monthly P&I | Total Interest |
|---|---|---|---|
| 30 years | 6.5% | $1,896 | $382,633 |
| 20 years | 6.25% | $2,196 | $227,092 |
| 15 years | 6.0% | $2,532 | $155,683 |
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