Mortgage Payment Calculator

Calculate your monthly mortgage payment instantly including principal, interest, taxes, insurance, and PMI. Get detailed amortization schedules for your home loan.

Additional Monthly Costs

Understanding Mortgage Payments and Home Loan Costs

A mortgage payment calculator is an essential tool for homebuyers planning their finances in 2026. Your monthly mortgage payment consists of several components: principal and interest on your home loan, property taxes, homeowners insurance, and potentially PMI if your down payment is less than 20%. This comprehensive mortgage estimator helps you understand the true cost of homeownership beyond just the principal and interest.

How This Mortgage Calculator Works

Our online mortgage payment calculator uses the standard mortgage amortization formula to calculate your monthly principal and interest payment. The formula accounts for your loan amount (home price minus down payment), interest rate, and loan term. For fixed rate mortgages, this payment remains constant throughout the loan. The calculator then adds property taxes divided by 12, monthly homeowners insurance, PMI costs, and HOA fees to show your complete monthly housing expense. The amortization calculator feature displays how each payment breaks down between principal and interest over time.

Mortgage Affordability and Down Payments

Most financial advisors recommend your mortgage payment shouldn't exceed 28% of your gross monthly income. Use this mortgage affordability calculator to determine a comfortable home price range. Your down payment significantly impacts affordability—larger down payments reduce your loan amount, eliminate PMI requirements, and lower monthly payments. In Canada and the United States, minimum down payments range from 3.5% (FHA loans) to 20% for conventional mortgages. A 20% down payment is ideal for avoiding PMI and securing better interest rates from lenders.

Fixed Rate vs Variable Rate Mortgages

A fixed rate mortgage calculator shows consistent payments throughout your loan term, providing budget stability and protection against rising interest rates. Variable rate mortgages offer lower initial rates but can increase over time. Most homebuyers in 2026 prefer 30-year fixed mortgages for long-term payment predictability, while 15-year mortgages offer faster equity building and substantial interest savings. Compare both options with our mortgage interest calculator to see total costs over the loan lifetime.

Using This Calculator for Refinancing

This mortgage refinance calculator helps evaluate whether refinancing makes financial sense. Enter your current loan balance as the home price, set down payment to zero, and input the new interest rate and term. Compare the new monthly payment to your current payment to calculate potential savings. Refinancing typically makes sense when rates drop 0.5-1% or more, when switching from variable to fixed rates, or when shortening your loan term. Factor in closing costs when determining your mortgage payoff calculator break-even point for refinancing decisions.

Frequently Asked Questions

How is my monthly mortgage payment calculated?
Your monthly mortgage payment consists of principal and interest (calculated using the loan amount, interest rate, and term), plus property taxes, homeowners insurance, PMI if your down payment is less than 20%, and HOA fees if applicable. Our calculator uses the standard mortgage formula to determine principal and interest, then adds all additional costs for your total monthly payment estimate.
What is an amortization schedule?
A mortgage amortization schedule shows how each monthly payment is split between principal and interest over the life of your home loan. Early payments are mostly interest, while later payments are mostly principal. Our amortization calculator displays year-by-year breakdowns showing remaining balance, cumulative interest paid, and how much equity you build over time.
How much house can I afford with my income?
Most lenders recommend your monthly mortgage payment should not exceed 28% of your gross monthly income. For example, with $6,000 monthly income, aim for payments under $1,680. Use our mortgage affordability calculator to input your income and debts to determine a comfortable home price range. Remember to factor in property taxes, insurance, and maintenance costs for accurate home loan planning.
What is PMI and when is it required?
PMI (Private Mortgage Insurance) is required by lenders when your down payment is less than 20% of the home price. PMI typically costs 0.5% to 1% of the loan amount annually. On a $300,000 loan, that's $125-$250 per month. Once you reach 20% equity through payments or home appreciation, you can request PMI removal to reduce your monthly mortgage payment.
Should I choose a 15-year or 30-year mortgage?
A 30-year fixed rate mortgage offers lower monthly payments but higher total interest. A 15-year mortgage has higher payments but builds equity faster and saves significantly on interest—often 50% or more. Use our mortgage calculator to compare both terms. Choose based on your budget, retirement timeline, and whether you prefer lower payments or faster payoff and equity building.
How do property taxes affect my mortgage payment?
Property taxes are typically included in your monthly mortgage payment through an escrow account. Annual taxes are divided by 12 and added to your principal and interest payment. Property tax rates vary by location—ranging from 0.3% to 2.5% of home value annually. In Canada and high-tax US states, property taxes can add $300-$1,000+ to monthly payments. Always include taxes when calculating mortgage affordability.
Can I use this calculator for mortgage refinancing?
Yes, our mortgage refinance calculator works for refinancing by entering your current loan balance as the home price, zero down payment, and new interest rate and term. Compare your current monthly payment to the refinanced payment to calculate potential savings. Refinancing makes sense when interest rates drop 0.5-1% or more, or when switching from variable rate to fixed rate mortgages for payment stability.
What information do I need to calculate my mortgage payment?
To calculate accurate monthly mortgage payments, you need: home price, down payment amount, loan term (typically 15 or 30 years), interest rate, annual property taxes, annual homeowners insurance, and PMI rate if applicable. Optional inputs include HOA fees. This mortgage payment estimator provides comprehensive results including principal, interest, taxes, insurance (PITI) and total payment breakdowns for better home loan planning.

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