Mortgage Calculator

Calculate your monthly mortgage payment with real-time sliders for home price, down payment, interest rate, and loan term. Full PITI breakdown, amortization schedule, and charts.

Home Details
Enter the specifics of the home you want to buy.
Loan Details
Taxes, Insurance & Fees
Estimated based on your selected state.
Estimated Monthly Payment
$2,548
Principal & Interest$2,023
Property Tax$400
Home Insurance$125
Payment Breakdown
Loan Summary
Total Loan Amount
$320,000
Total Interest Paid
$408,142
Payoff Date
Aug 2056
Amortization Schedule
Track your balance over 30 years.

How to Use This Calculator

Adjust the four main sliders to explore different home prices, down payments, interest rates, and loan terms. The results update instantly — you'll see your total monthly payment, a PITI breakdown, and an interactive amortization chart.

  1. 1
    Set the Home Price — Drag the slider or type a dollar amount. The default is $400,000, the approximate U.S. median home price.
  2. 2
    Choose Your Down Payment — Adjust the percentage (10%–50%). The dollar amount updates automatically. A 20% down payment eliminates PMI.
  3. 3
    Select Your Interest Rate — Current 30-year fixed rates typically range from 5% to 8%. The default is 6.5%.
  4. 4
    Pick a Loan Term — 15-year and 30-year are the most common. A shorter term means higher payments but much less interest.
  5. 5
    Fine-Tune with State & Costs — Select your state for localized property tax rates and insurance estimates. You can also manually adjust the tax rate, insurance, HOA, and PMI.

📊 Example: $400,000 Home with 20% Down

Let's say you're buying a $400,000 home with a 20% down payment ($80,000), financing the remaining $320,000 at a 6.5% interest rate on a 30-year fixed-rate mortgage. Using national-average property taxes (1.2%) and insurance ($1,500/year), here's what your monthly payment looks like:

Home Price$400,000
Down Payment (20%)$80,000
Loan Amount$320,000
Principal & Interest$2,022/mo
Property Taxes$400/mo
Homeowners Insurance$125/mo
Total Monthly Payment (PITI)$2,547/mo

Over the first 12 months, roughly $20,800 of your payments go toward interest alone — that's about 78% of your total P&I payments in year one. Use the amortization chart to visualize this over time.

Understanding Your Results

Your mortgage payment consists of four main components. Understanding each one helps you evaluate trade-offs between different loan options and home prices.

Principal & Interest (P&I)P&I is determined by your loan amount, interest rate, and term length. The formula M = P × [r(1+r)^n]/[(1+r)^n−1] calculates your fixed monthly payment. Of every payment, interest is calculated on the remaining balance first, then the rest goes to principal.
Property TaxesTaxes are based on your home's assessed value and local millage rates. We use state-level averages (e.g., CA ~0.76%, TX ~1.6%, NJ ~2.4%). Your actual rate may vary by county. Property taxes are typically paid into an escrow account.
Homeowners InsuranceInsurance covers damage to your property and liability. Lenders require it. We estimate based on state averages ($800–$2,500/year depending on location and climate risk). You can adjust this to your actual quote.
PMI & HOAPMI (Private Mortgage Insurance) is required when your down payment is under 20%. HOA fees apply only in planned communities. Both are optional fields in this calculator — toggle them if applicable to your situation.

Common Mistakes to Avoid

Homebuyers often misunderstand how mortgage payments work. Here are the most common errors to watch out for:

❌ Focusing only on the monthly payment without understanding total interest cost.

✅ A $320,000 loan at 6.5% for 30 years costs over $408,000 in interest alone. Use our amortization chart to see the true cost — and consider a 15-year term or extra payments to reduce total interest.

❌ Forgetting property taxes and insurance when budgeting.

✅ A $2,022/mo P&I payment can easily become $2,500+ after taxes, insurance, and PMI. Always use a PITI calculator (like this one) to get a complete picture before setting your home shopping budget.

❌ Assuming the advertised interest rate is the rate you'll qualify for.

✅ Your actual rate depends on your credit score, DTI ratio, down payment, and loan type. A borrower with a 760 credit score might get 6.5%, while a 640-score borrower could see 7.5% or higher — a difference of ~$220/mo on a $400K loan.

Related Tools & Guides

Deepen your understanding with these related tools and guides:

Affordability Calculator →PMI Calculator →Extra Payment Calculator →Monthly Payment Breakdown Guide →How Amortization Works →

Frequently Asked Questions

How is my monthly mortgage payment calculated?
Your monthly payment (PITI) has four components: Principal (the loan amount), Interest (cost of borrowing), Taxes (property taxes), and Insurance (homeowner's insurance). The formula is: M = P × [r(1+r)^n] / [(1+r)^n − 1], where P is loan amount, r is monthly interest rate, and n is number of payments.
What is included in PITI?
PITI stands for Principal, Interest, Taxes, and Insurance. Principal and Interest are determined by your loan amount, rate, and term. Property taxes and homeowners insurance are estimated based on your home price and location.
How does the down payment affect my monthly payment?
A larger down payment reduces your loan amount, which lowers your monthly payment. It also may eliminate PMI if you put down 20% or more. Use the slider to see how different down payment percentages change your payment.
Does this calculator include PMI?
For simplicity, this calculator assumes a 20% down payment (no PMI). If you're putting down less than 20%, use our dedicated PMI Calculator for a more accurate picture that includes private mortgage insurance costs.