Mortgage Calculator
Monthly payment · Total interest · Amortization schedule
20% = no PMI
Current avg: 6.5–7.5%
Avg 1–1.5% of value
Avg $1,200–$2,000/yr
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Monthly P&I
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Total PITI
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Total Interest
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Total Paid
About This Calculator
The Mortgage Calculator helps home buyers and investors understand the true cost of a home loan. Your monthly payment has four components — principal, interest, taxes, and insurance (PITI).
Principal & Interest (P&I) is your fixed loan payment. Property taxes typically run 1–1.5% of home value annually. Home insurance averages $1,200–$2,000/year. If your down payment is under 20%, add PMI ($50–$200/month).
The difference between a 15-year and 30-year mortgage is dramatic: a 15-year loan builds equity faster and saves tens of thousands in interest, but has higher monthly payments. Use this calculator to compare both options side by side.
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Frequently Asked Questions
How is a monthly mortgage payment calculated?▼
Monthly payment = Loan Amount × [r(1+r)^n] / [(1+r)^n - 1], where r = monthly interest rate and n = total number of payments. For a $360,000 loan at 7% for 30 years: r = 0.07/12 = 0.00583, n = 360. Monthly P&I = $2,395.
What is included in a mortgage payment?▼
Most mortgage payments include: Principal (loan repayment), Interest (lender's fee), Property Taxes (escrowed monthly), and Homeowners Insurance (escrowed). This is called PITI. PMI is added if your down payment is under 20%.
What credit score do I need for the best mortgage rate?▼
A credit score of 740+ typically qualifies you for the best rates. Scores of 700–739 get good rates with slightly higher costs. Below 620, conventional loans become difficult — FHA loans may be an option with 3.5% down.
Should I choose a 15-year or 30-year mortgage?▼
A 15-year mortgage saves significantly on interest (often 40–50% less total interest) and builds equity faster, but monthly payments are 40–50% higher. Choose 30-year if cash flow is a concern; 15-year if you can comfortably afford the higher payment.
What is PMI and how do I avoid it?▼
Private Mortgage Insurance (PMI) is required when your down payment is under 20%, typically costing 0.5–1.5% of the loan annually. Avoid it by: putting 20%+ down, using a piggyback loan (80/10/10), or choosing lender-paid PMI in exchange for a slightly higher rate.
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