Mortgage Calculator
Calculate monthly mortgage payments, total interest, and amortization for any home loan. Free 2026 mortgage calculator with PMI, taxes, and insurance support.
How to Use the Mortgage Calculator
Enter the home price, your down payment percentage (or dollar amount), the loan term in years (typically 15 or 30), and the interest rate. The calculator instantly returns your monthly principal-and-interest payment. To see the full housing cost picture, add property tax (often 1–2% of home value annually), homeowner's insurance ($1,000–$2,000/year), and HOA fees if applicable.
For accurate results, get your interest rate from a real lender pre-approval rather than guessing — rates vary by credit score, loan type, and lender. The advertised "best rate" you see online is usually for borrowers with 760+ credit and 20% down.
Understanding the Numbers
A typical 30-year fixed mortgage on a $400,000 home with 20% down ($80,000) at 6.5% interest produces a $2,023 monthly payment. Over 30 years, you'll pay $728,470 total — meaning interest alone is $408,470, more than the original loan amount. This is why most experts recommend extra payments on principal whenever cash flow allows.
Compare that to a 15-year loan at 5.75%: the monthly payment jumps to $2,659 (32% higher), but total interest drops to $158,592 — a savings of $250,000. The same home, just different terms.
The Real Monthly Cost: PITI Explained
Banks calculate affordability using PITI: Principal + Interest + Taxes + Insurance. On that same $400K home, expect roughly $5,000–$6,000 in annual property tax (varies dramatically by state), $1,500 in homeowner's insurance, and $0–$200 monthly in HOA. Total monthly cost balloons from $2,023 (P&I) to about $2,725 (PITI). Mortgage lenders typically limit PITI to 28% of gross income.
15-Year vs 30-Year: A Strategic Choice
The 30-year mortgage offers cash flow flexibility — lower monthly payment frees up money for investing, emergencies, or other goals. The 15-year mortgage builds wealth aggressively by paying off your home faster and saving hundreds of thousands in interest. Smart middle path: take a 30-year mortgage but make biweekly payments (equivalent to one extra monthly payment per year). This shaves 5–7 years off the loan with minimal monthly impact.
If you go 30-year and invest the savings instead, historical S&P 500 returns of ~10% can outpace mortgage interest. But the math assumes discipline — most people who choose 30-year just spend the difference.
Avoiding Costly Mortgage Mistakes
The five biggest pitfalls: (1) stretching to qualify for the maximum loan amount instead of buying within your means; (2) ignoring closing costs (2–5% of loan amount, often $8,000–$20,000); (3) skipping mortgage points analysis — paying 1 point upfront for 0.25% rate reduction breaks even in 5–7 years; (4) not shopping multiple lenders (rates can vary by 0.5%); (5) buying with less than 20% down and paying PMI for years. Run your numbers through our amortization table to see exactly where every dollar goes over the loan's life.
When Renting Beats Buying
Despite cultural pressure, buying isn't always smarter. If you'll move in under 5 years, the transaction costs (6% to sell, ~3% to buy) often consume any equity gained. In high-cost-of-living cities where rent is significantly cheaper than mortgages, investing the difference in index funds can outperform homeownership. Run the math through our savings goal calculator to compare the two paths before committing.