This article contains affiliate links. We may earn a commission at no extra cost to you.

Mortgage Calculator 2026

Enter your home price, down payment, and loan details to calculate your full monthly payment — including principal & interest, property taxes, insurance, and PMI.

0%30%
Loan Amount
$280,000
2%10%
0%3%
Total Monthly Payment
$2,212
Principal & Interest + Tax + Insurance
Principal & Interest
$1,770
Property Tax
$350
Home Insurance
$100
Total Payment Over Loan Life
$637,320
Total Interest Paid
$357,320
Monthly Payment Breakdown
P&I Property Tax Insurance
Amortization Schedule
YearPaymentPrincipalInterestBalance
Show remaining years
YearPaymentPrincipalInterestBalance
Rate Comparison

How to Use This Calculator

  1. Enter your home price — the purchase price or estimated value of the home you’re buying
  2. Set your down payment — drag the slider to your planned down payment percentage; 20% avoids PMI
  3. Choose your interest rate — use your pre-approval rate or current market rates; adjust the slider in 0.125% increments
  4. Select a loan term — 15 years means higher monthly payments but far less total interest; 30 years lowers your payment
  5. Add property tax rate — check your county assessor’s website for the local rate (national average is ~1.1%)
  6. Enter annual home insurance — get quotes from insurers or use $1,000–$2,000 as a starting estimate

All results update instantly as you adjust inputs. No sign-up or data sharing required.

Understanding Your Mortgage Payment

Most homeowners are surprised that their mortgage payment covers far more than just repaying the loan. Here is what makes up your total monthly obligation:

Principal & Interest (P&I)

This is the core loan repayment calculated using standard amortization. Early payments are mostly interest; later payments shift toward principal. Your P&I payment stays fixed for the life of a fixed-rate mortgage — one of its key advantages over renting or adjustable-rate loans.

Property Tax

Collected by local governments and typically rolled into your monthly payment through an escrow account. Rates vary widely — from under 0.5% in states like Hawaii to over 2% in New Jersey and Illinois. The national average is approximately 1.1% of home value per year.

Home Insurance (Homeowner’s Insurance)

Required by virtually all mortgage lenders. It covers damage from fire, storms, theft, and liability claims. Annual premiums typically run $1,000–$2,500 depending on your home’s value, location, and coverage level. Shop at least 3 insurers to compare.

PMI (Private Mortgage Insurance)

Required when your down payment is below 20% of the home price. PMI protects the lender — not you — in case of default. This calculator uses a standard rate of 0.5% of the loan amount annually, split into monthly installments. Once your equity reaches 20% (through payments or appreciation), you can request PMI removal from your lender. PMI typically cancels automatically at 22% equity under the Homeowners Protection Act.

Tips to Get a Better Mortgage Rate

1. Improve your credit score before applying

Lenders offer their best rates to borrowers with scores above 740. Even a 20-point improvement can drop your rate by 0.125%–0.25%, saving tens of thousands over the life of the loan. Pay down credit card balances, dispute any errors, and avoid opening new accounts in the 6 months before applying.

2. Compare at least 3–5 lenders

Rates vary more than most buyers realize. Credit unions, regional banks, online lenders, and mortgage brokers all price risk differently. Shopping multiple lenders within a 14-day window counts as only one credit inquiry under FICO scoring rules.

3. Consider paying points to buy down your rate

One discount point costs 1% of the loan amount and typically reduces your rate by 0.25%. Use the rate comparison table above to estimate how much a lower rate saves you per month — then divide the cost of points by the monthly savings to find your break-even period. If you plan to stay in the home longer than the break-even, buying points usually makes sense.

4. Time your lock strategically

Mortgage rates move daily with bond markets. Once you find a rate you are comfortable with, lock it in writing — most locks are free for 30–60 days. Floating (not locking) only makes sense if you have strong conviction rates will fall before closing.

Calculate your monthly budget after housing costs → Budget Planner Find out how long to save your down payment → Savings Goal Calculator Compare mortgage payoff with debt avalanche → Debt Payoff Calculator Calculate your net take-home pay → Salary Calculator See how investments grow alongside home equity → Compound Interest Calculator

Productivity Works Free Tools

All our financial calculators are 100% free, run entirely in your browser, and never store your data.

Browse all free tools

This article contains affiliate links. We may earn a commission at no extra cost to you.