FinanceUpdated May 2026

Mortgage Calculator

Estimate your monthly mortgage payment including principal, interest, taxes, insurance, and PMI.

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Updated 2026

What is a monthly mortgage payment?

A monthly mortgage payment is what you pay your lender each month to repay a home loan. The full amount — often called PITI — combines principal and interest with property taxes and homeowner's insurance, and adds PMI when your down payment is under 20%. Working out your PITI before house hunting keeps you focused on homes you can actually afford, not just ones a lender pre-approves you for. The calculator below uses the standard amortization formula and lets you factor in taxes, insurance, and PMI to see your real monthly cost.

Mortgage Calculator

Use this free mortgage payment calculator to estimate monthly mortgage payments with taxes, insurance, and PMI.
Your Mortgage
Enter home price and loan details
Example
Summary
Monthly payment breakdown
Monthly Payment
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Total Payment
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Total Interest
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How Mortgage Calculations Work

1

Loan Amount

We calculate the principal by subtracting your down payment from the home price.

2

Monthly Payment

Using the loan amount, interest rate, and term, we calculate your fixed monthly payment.

3

Amortization

Each payment is split between principal and interest, with early payments going more toward interest.

What factors affect your mortgage payment?

  • Home Price: The total purchase price of your property
  • Down Payment: Large down payments reduce your loan amount and monthly payment
  • Interest Rate: Higher rates mean higher monthly payments and more total interest
  • Loan Term: Longer terms have lower monthly payments but more total interest

Monthly Mortgage Payment Formula & Example

Formula: M = P × r × (1 + r)^n ÷ ((1 + r)^n − 1), where P = principal (loan amount after down payment), r = monthly interest rate (annual rate ÷ 12), n = total payments (360 for a 30-year mortgage). Taxes, insurance, and PMI are added separately.

Example: P = $300,000, APR = 6% → r = 0.06/12 = 0.005, n = 360 → M ≈ 300,000×0.005×(1.005)^360/((1.005)^360−1) ≈ $1,798.65 (principal & interest only, before taxes/insurance/PMI)

Quick Answer: Monthly Payment on a $300,000 Mortgage

Principal & interest only, for a $300,000 30-year fixed-rate mortgage with 20% down (loan amount $240,000) at common 2026 rates:

Interest rateLoan amountTermMonthly P&ITotal interest paid
5.5%$240,00030 years$1,363$250,853
6.0%$240,00030 years$1,439$277,800
6.5%$240,00030 years$1,516$305,773
7.0%$240,00030 years$1,596$334,498
7.5%$240,00030 years$1,677$363,852

For a $300,000 home with 0% down (loan amount $300,000) at 6.5% over 30 years, monthly P&I is $1,896. Adding typical property tax ($250/month) and homeowners insurance ($100/month) brings total PITI to about $2,246/month.

PMI is required when the down payment is under 20%. PMI typically costs 0.5–1% of the loan amount per year.

What's in a Monthly Mortgage Payment? (PITI Breakdown)

The total monthly payment most homeowners pay is called PITI: Principal, Interest, Taxes, and Insurance. The calculator above handles each separately so you can see the true all-in cost.

ComponentWhat it pays forTypical share
PrincipalRepaying the loan balanceGrows over time
InterestCost of borrowingShrinks over time
Property taxesLocal government (schools, services)~$100–$400/mo by state
Homeowners insuranceStructure and liability coverage~$75–$150/mo
PMILender insurance when down payment < 20%0.5–1% of loan/year
HOA feesCondo / planned-community dues (if applicable)$0–$500/mo

Early in a 30-year loan, interest makes up the majority of the P&I portion. By year 20, principal usually dominates — that is the amortization effect and the reason a mortgage is a built-in forced savings plan.

How Was This Calculated?

Show the math behind the monthly payment+

Monthly principal and interest is calculated with the standard amortization formula, sometimes called the annuity formula:

M = P × [ r(1+r)^n ] / [ (1+r)^n − 1 ]

Where:

  • M = monthly payment (principal + interest only)
  • P = loan principal (home price minus down payment)
  • r = monthly interest rate (annual rate ÷ 12, as a decimal — 6.5% APR = 0.00542 monthly)
  • n = total number of monthly payments (30 years × 12 = 360)

Worked example (the $300K / 6.5% / 30-year headline number):

P = 300,000, r = 0.065 / 12 = 0.005417, n = 360 M = 300000 × [ 0.005417 × (1.005417)^360 ] / [ (1.005417)^360 − 1 ] = 300000 × [ 0.005417 × 7.0143 ] / [ 7.0143 − 1 ] = 300000 × 0.006322 = $1,896.20

Adding property tax and insurance to get PITI: at 1.1% effective property tax + $1,200/year insurance on a $300K home, that is about $275 + $100 = $375/month, bringing the total PITI payment to roughly $2,271/month. PMI (if down payment is under 20%) is typically another 0.5–1% of the loan balance per year, or roughly $125–$250/month for the first several years.

The total interest over 30 years at 6.5% is about $382,837 — meaning $1 of every $2.27 in monthly P&I goes to interest on day one, and gradually flips to principal by year 20.

Real-World Example: Alex & Jordan Buy Their First Home

Alex and Jordan, both 32, combine to earn $135,000/year. They find a $400,000 townhouse in a medium-cost-of-living area and put 10% down ($40,000), financing the remaining $360,000 at 6.5% for 30 years.

Their gross household income supports the payment (the standard 28% rule of thumb for housing says ≈ $3,150/month is the upper limit on a $135K income), but the payment still feels tight alongside daycare, student loans, and retirement contributions. They use the calculator to model two scenarios: (a) the same loan with $200/month in extra principal payments, and (b) waiting one more year to save a 20% down payment and skip PMI. Even with $30,000 of additional rent paid in scenario (b), the lifetime savings exceed $50,000.

Types of Mortgages

Mortgages differ by interest-rate structure, term length, and government backing. The calculator above handles any of them — just enter your rate, loan amount, and term.

TypeBest forKey feature
Fixed-rate (FRM)Most home buyersRate never changes; predictable payment
Adjustable-rate (ARM)Short-term ownersLower initial rate; resets annually after fixed period
FHA loanFirst-time buyers, low down paymentInsured by Federal Housing Administration; 3.5% down
VA loanVeterans and active-duty military0% down; no PMI; guaranteed by Department of Veterans Affairs
USDA loanRural and suburban buyers0% down for eligible areas
ConventionalBuyers with 5–20% downNot government-backed; conforming loan limits set by FHFA
JumboHigh-cost-area or luxury buyersLoan amount above the conforming limit; stricter credit
15-year fixedOwners who can afford higher paymentsHigher monthly, much less interest; builds equity fast

The 2026 baseline conforming loan limit for a single-family home in most U.S. counties is $832,750; the high-cost area ceiling is $1,249,125 (per the Federal Housing Finance Agency). Loans above those limits are jumbo loans and typically carry stricter credit and down-payment requirements.

Early Repayment: How to Pay Off Your Mortgage Faster

Extra payments go 100% toward principal — every extra dollar reduces the balance on which future interest is calculated. Three popular strategies:

Use the calculator above to model any of these scenarios — increase the monthly payment or shorten the term to see the new payoff date and total interest saved.

Mortgage Glossary

Amortization
Spreading a loan into equal periodic payments. In a fully amortizing mortgage, the balance reaches zero exactly at the end of the term.
APR (Annual Percentage Rate)
The yearly cost of the loan including the interest rate plus most fees. APR is usually 0.1–0.5% higher than the note rate.
Closing costs
One-time fees paid at settlement — typically 2–5% of the loan amount — covering origination, title, appraisal, and recording.
Conforming loan
A loan within the FHFA loan limits that can be purchased by Fannie Mae or Freddie Mac.
Escrow
An account the lender maintains to pay property taxes and homeowners insurance on your behalf; the monthly escrow share is part of PITI.
LTV (Loan-to-Value)
Loan amount divided by the home's value. A $240,000 loan on a $300,000 home is 80% LTV.
PITI
Principal, Interest, Taxes, Insurance — the full monthly housing payment for most borrowers.
PMI (Private Mortgage Insurance)
Lender insurance required when down payment is below 20%. Usually 0.5–1% of the loan per year; cancellable once LTV reaches 78%.
Pre-approval
A lender's conditional commitment to lend up to a specific amount based on documented income, assets, and credit.
Title insurance
Insurance that protects the lender (and optionally the buyer) against claims on the property's ownership history.

Sources & References

Calculator formulas follow standard amortization mathematics and are consistent with lender disclosures under TILA (Truth in Lending Act).

Editorial standards

Every CalcCentral calculator is authored by a credentialed subject-matter expert and independently reviewed before publication. Our editorial policy follows the same E-E-A-T guidelines used by Google to evaluate YMYL (your-money-or-your-life) pages.

Author

Maya Chen, CFA

Chartered Financial Analyst

Independently reviewed

Dr. Aaron Pak, PhD

Doctor of Kinesiology & Public Health

Last reviewed: August 12, 2026 · Next scheduled review: quarterly

Verified accuracy

Cross-checked against authoritative formulas (IRS, NIST, ACSM) and updated for 2025/2026 tax years and rates.

Instant results

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Your data stays private

We never collect, store, or transmit your inputs. Every calculation runs locally in your browser.

Learn as you calculate

Each calculator includes the formula, plain-English explanation, and FAQs so you understand the result.

Estimates only. Calculator results are for educational and planning purposes — not professional advice. For binding decisions on taxes, investments, health, or legal matters, consult a qualified professional.

FAQ

Frequently asked questions

Everything you need to know about this calculator. Can't find what you're looking for? Email our team.

A mortgage payment calculator is a free tool that estimates the monthly principal and interest payment for a home loan. Our mortgage payment calculator supports fixed-rate and adjustable-rate mortgages, FHA, VA, and conventional loans, and adds taxes, insurance, and PMI to show the full PITI payment. The mortgage payment calculator also shows amortization and total interest over the loan term.

How it works

How to calculate monthly mortgage payments

Our mortgage payment calculator lets you estimate your monthly mortgage payment including principal, interest, taxes, insurance, and PMI in five steps.

  1. 1

    Enter the home price

    Type the purchase price or appraised value of the home. This is the starting point for the loan calculation.

  2. 2

    Enter the down payment

    Type the dollar amount you are paying up front. A 20% down payment avoids private mortgage insurance (PMI) on most loans.

  3. 3

    Enter the interest rate

    Type the annual mortgage rate as a percentage. The calculator uses this to compute the monthly interest charge on the remaining balance.

  4. 4

    Enter the loan term

    Type the loan length in years, typically 15 or 30. Shorter terms have higher payments but much less total interest.

  5. 5

    Review the breakdown

    The calculator shows principal and interest, plus optional fields for property tax, home insurance, and HOA fees when you provide them.

Mortgage Calculators by State

Every state has unique property-tax rates, homeowners-insurance costs, and conforming loan limits. Pick your state to see a pre-loaded median-priced home example with PITI breakdown.

All 50 states + DC. Property-tax data from Tax Foundation, insurance from III, conforming limits from FHFA 2026.

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Mortgage Calculator — $300K @ 6.5% = $1,896/mo (Free, 2026)