See exactly what your monthly mortgage payment will be — including principal, interest, taxes, insurance, and PMI. Adjust inputs in real time to compare scenarios and find the sweet spot for your budget.
Pro tip: Adding just $100/month in extra principal payments on a $300,000 30-year loan at 7% can save you over $75,000 in interest and cut nearly 6 years off your mortgage.
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How to Use the Mortgage Calculator
Start by entering the home’s purchase price at the top — results update instantly as you type. Adjust the down payment, loan term, and interest rate to match your situation. The calculator automatically includes property taxes, homeowner’s insurance, and private mortgage insurance (PMI) when applicable, giving you a complete picture of what you’ll actually pay each month.
Try the Extra Monthly Payment field to see how even a small additional amount toward principal can dramatically reduce your total interest and payoff timeline.
Understanding Your Monthly Payment
A mortgage payment is more than just paying back what you borrowed. Your monthly payment consists of four components, often called PITI:
- Principal — the portion that reduces your loan balance
- Interest — the lender’s charge for borrowing the money
- Taxes — your local property tax, typically escrowed monthly
- Insurance — homeowner’s insurance and, if applicable, PMI
In the early years of your loan, most of each payment goes toward interest. As the balance decreases, a larger share goes to principal — a process called amortization. This is why extra payments early in the loan have the most dramatic impact on total interest.
Fixed-Rate vs. Adjustable-Rate Mortgages
A fixed-rate mortgage locks in your interest rate for the entire loan term. Your principal and interest payment never changes, making it the most predictable option. A 30-year fixed is the most common choice because it offers the lowest monthly payment, though a 15-year fixed saves substantially on total interest.
An adjustable-rate mortgage (ARM) starts with a lower introductory rate (often 1–2 points below fixed rates) that resets after a set period — typically 5, 7, or 10 years. After that, the rate adjusts annually based on a market index. ARMs make sense if you plan to sell or refinance before the adjustment period, but carry the risk of significantly higher payments if rates rise.
How Private Mortgage Insurance (PMI) Works
When your down payment is less than 20% of the home price, lenders require private mortgage insurance. PMI protects the lender (not you) if you default on the loan. It typically costs between 0.5% and 1.5% of the original loan amount per year, added to your monthly payment.
The good news: PMI is temporary. Once your loan balance drops below 80% of the original home value (based on your payment schedule), you can request PMI removal. Under federal law, your lender must automatically cancel PMI when your balance reaches 78% of the original value. This calculator uses an estimated PMI rate of 0.7% annually.
The Power of Extra Payments
Making extra payments toward your mortgage principal is one of the most effective ways to build equity and reduce total interest. Even modest additional payments compound dramatically over time because every dollar of extra principal means less interest charged in every subsequent month.
Strategies for extra payments include rounding up your payment to the nearest hundred, making one extra full payment per year (equivalent to splitting your monthly payment into biweekly payments), or applying bonuses and tax refunds to the principal. Before making extra payments, confirm your lender applies them to principal and does not charge prepayment penalties.
Choosing the Right Loan Term
The trade-off between a 15-year and 30-year mortgage is straightforward: shorter terms mean higher monthly payments but dramatically lower total interest. On a $300,000 loan at 7%, a 30-year term costs approximately $418,527 in total interest, while a 15-year term costs only about $185,364 — a savings of over $233,000. However, the 15-year monthly payment is roughly 45% higher.
A 20-year term offers a middle ground that many borrowers overlook. It splits the difference in both monthly payment and total interest, and typically qualifies for rates close to 15-year products. Use the loan term pills above to compare all three options in seconds.
Looking for related tools? Try our Home Affordability Calculator to see how much house you can comfortably buy, or explore all Home & Real Estate tools.