Mortgage Calculator 2026 — Payment, Amortization & PMI

Calculate your monthly mortgage payment with taxes, insurance, PMI, and HOA. Free, instant results at the interest rate you enter.

By Konstantin Iakovlev · Updated September 2026 · Source: CFPB — Owning a Home

$
Down Payment
$
%
Loan Term

Monthly P&I

$1,733.12

Total Monthly Payment

$2,178.96

Total Interest Paid

$343,924.57

Monthly Payment Breakdown

Loan Amount$280,000.00
Down Payment (20.0%)$70,000.00
LTV Ratio80.0%
Principal & Interest$1,733.12
Property Tax$320.83
Homeowners Insurance$125.00
Total Monthly Payment$2,178.96
Total Interest Over Life of Loan$343,924.57

15-Year vs 30-Year Comparison

15yr Monthly P&I

$2,408.42

15yr Total Interest

$153,515.76

Interest Savings (15yr)

$190,408.81

Use the Mortgage Calculator 2026 — Payment, Amortization & PMI above to calculate your results. Enter your values and see instant results — all calculations run in your browser.

Disclaimer: This calculator is for informational purposes only and does not constitute tax, financial, or legal advice. Results are estimates based on the information you provide and current rates. Always consult a qualified tax professional or financial advisor for advice specific to your situation.

How It Works

A mortgage payment calculator determines your monthly principal and interest (P&I) payment using the standard amortization formula: M = P[r(1+r)^n] / [(1+r)^n - 1], where P is the loan amount, r is the monthly interest rate, and n is the total number of payments. For a 30-year fixed mortgage, n equals 360 monthly payments. The formula ensures that each payment covers the interest owed for that month plus a portion of the principal, and the loan is fully repaid by the end of the term.

In the early years of a mortgage, the majority of each payment goes toward interest rather than principal. For example, on a $300,000 loan at 7%, about $1,750 of the first $1,996 monthly payment is interest, with only $246 reducing the principal. Over time, as the outstanding balance decreases, the interest portion shrinks and more of each payment is applied to principal. This gradual shift is called amortization. Making even small extra payments toward principal in the early years can shave years off the loan and save tens of thousands in interest.

Beyond P&I, your total monthly mortgage payment typically includes property taxes, homeowners insurance, and possibly private mortgage insurance (PMI). Lenders require PMI when your down payment is less than 20% of the home's purchase price, and it usually costs between 0.5% and 1.5% of the original loan amount per year. PMI can be removed once you reach 20% equity. The combination of P&I, taxes, insurance, and PMI is often referred to as PITI, and lenders use this total when evaluating your debt-to-income ratio.

The total cost of a mortgage over its full term is substantially more than the original loan amount. A $300,000 loan at 7% over 30 years results in total payments of approximately $718,527, meaning you pay $418,527 in interest alone. Choosing a 15-year term at the same 7% raises the payment to $2,696.48, about 35% more, and cuts total interest by more than half, to $185,367. Even a small reduction in interest rate, such as 0.25%, can save over $15,000 in interest over 30 years on a typical loan.

Example: $400,000 home, 10% down, 6.75% rate, 30-year fixed

  1. 1 Step 1: Purchase price is $400,000 with 10% down payment ($40,000). Loan amount = $400,000 - $40,000 = $360,000.
  2. 2 Step 2: Monthly interest rate = 6.75% / 12 = 0.5625%. Number of payments = 30 x 12 = 360. Monthly P&I = $360,000 x [0.005625 x (1.005625)^360] / [(1.005625)^360 - 1] = $2,334.95.
  3. 3 Step 3: PMI is required because the down payment is below 20%. At a quoted 0.8% PMI rate (the calculator's default is 0.5%; enter your own), PMI = $360,000 x 0.8% / 12 = $240/month. You can ask to cancel it once the balance is scheduled to reach $320,000, 80% of the $400,000 original value (payment 98 on this schedule), and the servicer must end it automatically at $312,000, 78% (payment 112).
  4. 4 Step 4: Add estimated property tax ($5,000/year, entered as a 1.25% rate, = $416.67/month) and homeowners insurance ($1,800/year = $150/month). Total monthly PITI = $2,334.95 + $240 + $416.67 + $150 = $3,141.62.
  5. 5 Step 5: Total cost over 30 years (P&I only) = $2,334.95 x 360 = $840,583. Total interest paid = $840,583 - $360,000 = $480,583.

Source: CFPB — Owning a Home · Last updated: September 2026

Frequently Asked Questions

How much house can I afford?
A common guideline is that your total monthly housing payment (principal, interest, taxes, insurance) should not exceed 28% of your gross monthly income, and total debt payments should not exceed 36%. For example, with a $100,000 household income, aim for a housing payment under $2,333/month. Lenders may qualify you for more, but staying within these ratios reduces financial stress.
What is PMI and when can I remove it?
Private mortgage insurance (PMI) is required by conventional lenders when your down payment is less than 20% of the home price. PMI typically costs 0.5% to 1.5% of the loan amount annually. You can request PMI removal when your loan-to-value ratio reaches 80%, and lenders must automatically cancel it at 78% LTV based on the original amortization schedule.
Is a 15-year or 30-year mortgage better?
A 15-year mortgage has higher monthly payments but saves dramatically on total interest (often 50-60% less) and typically offers a lower interest rate. A 30-year mortgage has lower payments, providing more cash flow flexibility. Choose 15-year if you can comfortably afford it; choose 30-year if you need lower payments or want to invest the difference elsewhere.
How much does one percentage point in interest rate affect my payment?
On a $300,000 mortgage, each 1% increase in interest rate adds roughly $175-200/month to the payment and over $60,000 in total interest over 30 years. For example, going from 6% to 7% increases the monthly P&I payment from approximately $1,799 to $1,996.
Should I pay points to lower my interest rate?
One discount point costs 1% of the loan amount and typically reduces the interest rate by 0.25%. On a $300,000 30-year loan at 6.5%, one point costs $3,000 and, by cutting the rate to 6.25%, saves about $49 a month, so you break even in about 61 months (5.1 years). Paying points is worthwhile if you plan to stay in the home longer than the break-even period.
What is included in PITI?
PITI stands for Principal, Interest, Taxes, and Insurance. It represents your total monthly housing cost. Principal and interest are your loan payment; taxes are property taxes (often escrowed monthly); and insurance includes homeowners insurance and PMI if applicable. Lenders evaluate your PITI when determining loan approval.

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