Calculate monthly mortgage payments, total interest, and amortization schedule.
Usually 0.5–1.5% if down payment < 20%
Total monthly payment (PITI) adds property tax, homeowner's insurance, and PMI (if down payment < 20%).
Example 1: $350,000 home, 30-year, 6.5%
Example 2: $500,000 home, 15-year, 6.0%
Common Questions
Buying a home is the largest financial commitment most Americans ever make. Our free mortgage calculator helps you understand exactly what you'll pay each month — and over the life of your loan — before you sign anything.
A mortgage calculator is a digital tool that uses the standard loan amortization formula to estimate your monthly mortgage payment based on your home price, down payment, interest rate, and loan term. Our advanced version also includes property taxes, homeowner's insurance, and PMI — giving you the complete PITI payment picture.
Your principal and interest payment is calculated using the amortization formula: M = P[r(1+r)^n]/[(1+r)^n-1]. The complete payment also includes property tax (usually 1-2% of home value annually), homeowner's insurance ($800-$1,500/year on average), and private mortgage insurance if your down payment is below 20%.
PITI stands for Principal, Interest, Taxes, and Insurance. Most lenders evaluate affordability based on your total PITI payment, not just principal and interest. As a guideline, your total housing payment should not exceed 28% of your gross monthly income (the "front-end ratio").
A fixed-rate mortgage keeps your interest rate (and P&I payment) constant for the entire loan term. This provides predictability and is ideal when rates are historically low. An adjustable-rate mortgage (ARM) starts with a lower rate that adjusts periodically after an initial fixed period — useful if you plan to move within 5-7 years.
Several strategies lower your payment: a larger down payment reduces the loan principal; a longer loan term (30 vs 15 years) lowers monthly payments but increases total interest; improving your credit score can secure a lower interest rate; buying discount points upfront permanently lowers your rate; and eliminating PMI by reaching 20% equity saves $100-400/month on most loans.
Even modest extra monthly payments dramatically reduce your loan term and total interest. An extra $200/month on a $300,000, 30-year loan at 6.5% saves over $80,000 in interest and pays off the loan 6 years early. Use our extra payment field to model your exact scenario.
Our calculator works for all English-speaking markets. US buyers can input their property tax and PMI separately. Canadian buyers should note that Canadian mortgages compound semi-annually (enter your effective monthly rate). UK buyers can use our tool for standard repayment and interest-only mortgages. Australian buyers: convert your annual rate to a monthly equivalent before entering.
Conventional loans typically require a 620+ credit score, with best rates at 740+. FHA loans accept 580+ with 3.5% down, or 500-579 with 10% down. VA and USDA loans have no official minimum but most lenders require 620+. Even a 0.5% rate improvement from a higher credit score saves tens of thousands over a 30-year loan.
If rates have dropped since you bought your home, refinancing may lower your payment and total interest. The rule of thumb: refinance when you can reduce your rate by at least 1% and plan to stay long enough to recoup closing costs (typically 2-3 years). Use our calculator to compare your current payment with a potential refinanced payment.
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