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Mortgage Calculator

Calculate your monthly mortgage payment, total interest, and amortization schedule for a US fixed-rate mortgage.

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Total Monthly Payment

$2,572.62

Principal & Interest

$2,022.62

Loan Amount

$320,000.00

Principal & Interest
$2,022.62
Property Tax
$400.00
Insurance
$150.00
HOA
$0.00
Total Monthly
$2,572.62
Total Payments
$728,143.20
Total Interest
$408,140.63
Total Cost
$808,140.63

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Understanding Your Mortgage

A mortgage is a loan used to purchase a home, where the property itself serves as collateral. Your monthly payment consists of principal (the amount that reduces your loan balance) and interest (the cost of borrowing). In the early years of your mortgage, most of your payment goes toward interest, but over time the balance shifts and more goes toward principal. This calculator helps you understand exactly how much you will pay each month and over the life of your loan, including property taxes, insurance, and other costs that are often bundled into your monthly payment through an escrow account.

Fixed-Rate vs. Adjustable-Rate Mortgages

A fixed-rate mortgage locks in your interest rate for the entire loan term, meaning your principal and interest payment never changes. This is the most popular choice for homebuyers who value predictability in their budget. An adjustable-rate mortgage (ARM) starts with a lower introductory rate that adjusts periodically based on market conditions. ARMs can be appealing if you plan to sell or refinance before the rate adjusts, but they carry the risk of significantly higher payments if rates rise. This calculator focuses on fixed-rate mortgages, which account for the vast majority of home loans in the United States.

Private Mortgage Insurance (PMI)

If your down payment is less than 20% of the home price, most lenders will require you to pay Private Mortgage Insurance (PMI). PMI protects the lender in case you default on the loan. The cost of PMI typically ranges from 0.3% to 1.5% of the original loan amount per year, depending on your credit score and down payment size. The good news is that PMI is not permanent. Under the Homeowners Protection Act, your lender must automatically cancel PMI once your loan balance reaches 78% of the original home value. You can also request removal once you reach 80% loan-to-value (LTV), which this calculator tracks for you.

Down Payment

The down payment is the portion of the home price you pay upfront. A larger down payment reduces your loan amount, lowers your monthly payment, and can help you avoid PMI. While 20% is often cited as the ideal down payment, many loan programs allow much less. FHA loans require as little as 3.5% down, and some VA and USDA loans offer zero-down options for eligible borrowers. However, putting less money down means a higher loan amount, more interest paid over time, and the added cost of mortgage insurance. Consider your savings, emergency fund, and closing costs when deciding how much to put down. A good rule of thumb is to avoid depleting your savings entirely for the down payment.

Frequently Asked Questions

A common guideline is that your total monthly housing costs should not exceed 28% of your gross monthly income. Use the "Max. Home Price" mode to calculate the maximum home price you can afford based on your desired monthly payment, down payment, interest rate, and loan term.
Private Mortgage Insurance (PMI) is required by lenders when your down payment is less than 20% of the home price. PMI protects the lender if you default on the loan. It is automatically removed once your loan balance reaches 80% of the original home value, which is known as reaching 20% equity.
A 15-year mortgage has higher monthly payments but significantly lower total interest costs and builds equity faster. A 30-year mortgage has lower monthly payments, giving you more flexibility in your budget, but you pay much more in interest over the life of the loan. Choose based on your financial goals and monthly budget.
Your total monthly payment typically includes principal and interest (P&I), property taxes, homeowners insurance, HOA fees (if applicable), and private mortgage insurance (PMI) if your down payment is less than 20%. This is often referred to as PITI (Principal, Interest, Taxes, Insurance).
Even small changes in the interest rate can significantly impact your monthly payment and total cost. For example, on a $320,000 loan, a 0.5% increase in rate adds roughly $100 per month to your payment and tens of thousands of dollars over the life of the loan. Shopping for the best rate is one of the most impactful things you can do.
The interest rate is the cost of borrowing the principal loan amount. The APR (Annual Percentage Rate) includes the interest rate plus other costs such as mortgage insurance, closing costs, and loan origination fees, giving you a more complete picture of the total cost of the loan. The APR is always equal to or higher than the interest rate.

All calculations are for general informational purposes only. Not financial, tax, or legal advice. No guarantee of accuracy. Use at your own risk. Full disclaimer