Mortgage Calculator: Estimate Monthly Payments & Affordability (2026 Rates)

How to use our mortgage calculator

1Enter the home price. Type or slide to the purchase price of the home you're considering.
2Set your down payment. Enter your down payment in dollars. A down payment of 20% or more avoids PMI.
3Add your interest rate and term. Use your quoted interest rate, or our indicative average, and choose a 15-, 20-, or 30-year term.
4Include taxes, insurance, and fees. Expand the advanced options to add property tax, homeowners insurance, PMI, and HOA dues for a complete payment.
5Review your results. See your full monthly payment, total interest, and amortization schedule update instantly.

What factors affect your monthly payment?

A mortgage payment is more than just principal and interest. The five components below — often abbreviated as PITI plus PMI and HOA — determine your true monthly cost of homeownership:

Principal & interest: The core loan repayment. Larger loans, higher rates, and longer terms increase the interest you pay.
Property taxes: Set by your local government as a percentage of your home's assessed value, typically collected monthly through escrow.
Homeowners insurance: Protects your home and is usually required by lenders; premiums vary by location and coverage.
PMI: Private mortgage insurance applies when your down payment is under 20% and is removed once you build enough equity.
HOA dues: Monthly fees for condos and planned communities that cover shared amenities and maintenance.

How mortgage payments are calculated

Your principal and interest payment follows the standard amortization formula:

M = P · r(1 + r)ⁿ / ((1 + r)ⁿ − 1)

where M is the monthly payment, P is the loan principal, r is the monthly interest rate (annual rate ÷ 12), and n is the total number of payments (years × 12). Early in the loan, most of each payment goes toward interest; over time the balance shifts toward principal. The amortization schedule above shows this shift year by year.

Understanding PMI

Private mortgage insurance protects the lender, not you, if you stop making payments. On conventional loans it is generally required when your down payment is below 20% of the home's value, and it typically costs between 0.3% and 1.5% of the loan amount per year. The good news: once you reach roughly 20% equity — through payments or appreciation — you can usually request that PMI be removed, lowering your monthly payment. Our calculator adds PMI automatically when your down payment is under 20% and removes it at 20% or above.

The impact of interest rates

Even small rate changes have a large effect over a 30-year loan. On a $350,000 loan, a single percentage point can change your monthly payment by roughly $200 and your lifetime interest by tens of thousands of dollars. That's why shopping multiple lenders and improving your credit score before applying can be so valuable. Try nudging the interest-rate slider above to see how sensitive your payment is.

How much house can you afford?

Lenders commonly apply the 28/36 rule: your housing payment should stay under about 28% of your gross monthly income, and total debt payments under 36%. Switch the calculator to the Affordability tab to work backward from your income and debts to an estimated maximum home price. Remember to leave room in your budget for maintenance, closing costs, and an emergency fund rather than stretching to your absolute maximum.

Frequently asked questions

How is a monthly mortgage payment calculated?

Your monthly mortgage payment is built from principal and interest plus escrow items. Principal and interest use the loan amount, interest rate, and term in the standard amortization formula M = P · r(1+r)ⁿ / ((1+r)ⁿ − 1), where r is the monthly rate and n is the number of payments. We then add monthly property taxes, homeowners insurance, any private mortgage insurance (PMI), and HOA dues to get your full PITI payment.

What is included in PITI?

PITI stands for Principal, Interest, Taxes, and Insurance — the four main parts of a typical mortgage payment. Our calculator also separates PMI and HOA dues so you can see the complete monthly cost of owning the home, not just the loan payment.

When do I have to pay PMI?

Private mortgage insurance is generally required on conventional loans when your down payment is less than 20% of the home's value. PMI typically costs about 0.3%–1.5% of the loan amount per year and can be removed once you reach roughly 20% equity. Our calculator automatically adds PMI when your down payment is under 20% and removes it at 20% or more.

How much house can I afford?

A common guideline is the 28/36 rule: keep your total housing payment under about 28% of your gross monthly income and all debt payments under 36%. Use our home affordability calculator to enter your income, monthly debts, and down payment and get an estimated maximum home price and payment.

Should I choose a 15-year or 30-year mortgage?

A 15-year mortgage has higher monthly payments but a lower interest rate and far less total interest, building equity faster. A 30-year mortgage has lower monthly payments and more flexibility, but costs more interest over time. Try both terms in the calculator to compare the monthly payment and total interest side by side.

How does my down payment affect my mortgage?

A larger down payment lowers your loan amount, monthly payment, and total interest, and a down payment of 20% or more lets you avoid PMI entirely. A smaller down payment makes buying possible sooner but usually means a higher payment plus mortgage insurance until you build equity.

Are the interest rates in this calculator current?

The calculator uses an indicative national average rate (around 6.75% as of June 2026) as a starting point, but your actual rate depends on your credit score, loan type, down payment, and the lender. Enter a quote from your own lender for the most accurate estimate.