Free Mortgage Calculator
Estimate your monthly mortgage payment with our free calculator. Includes principal and interest, property tax, and home insurance for a complete picture of homeownership costs. Whether you are a first-time homebuyer, refinancing an existing loan, or evaluating investment property, understanding your monthly payment helps you budget effectively and avoid overextending financially.
How Mortgage Payments Work
A mortgage payment typically consists of four components, often referred to as PITI: Principal, Interest, Taxes, and Insurance. The principal is the amount you borrow to purchase the home. Interest is what the lender charges for lending you the money, expressed as an annual percentage rate (APR). Property taxes are assessed by local governments based on your home's value. Homeowners insurance protects against damage to your property. Many lenders also require private mortgage insurance (PMI) when your down payment is less than 20 percent.
How to Use This Calculator
Enter the home price, down payment amount, interest rate, and loan term to see your estimated monthly payment. The calculator automatically breaks down your payment into principal and interest portions. You can adjust the down payment percentage to see how it affects your monthly costs - a larger down payment reduces both your loan amount and the need for PMI. The income estimate uses the standard 28 percent front-end ratio, meaning lenders typically recommend that your monthly housing costs not exceed 28 percent of your gross monthly income.
Features
- Principal and interest calculation with full amortization
- Property tax and homeowners insurance included in total estimate
- Multiple loan term options: 15-year, 20-year, and 30-year fixed rate
- Minimum income requirement estimate based on the standard 28 percent rule
- Instant updates as you adjust any input value
- All processing happens locally - your financial data stays private
Understanding Loan Terms
The loan term significantly impacts your monthly payment and total interest paid. A 30-year fixed-rate mortgage offers the lowest monthly payment but results in the highest total interest over the life of the loan. A 15-year mortgage has higher monthly payments but saves tens of thousands in interest and builds equity faster. A 20-year term provides a middle ground. Use our calculator to compare different term lengths side by side and choose what fits your budget and long-term financial goals.
Disclaimer
This calculator provides estimates for informational purposes only. Actual loan terms and rates depend on your credit score, lender, and market conditions. Not financial advice. Consult a qualified mortgage professional for personalized guidance.
What This Estimate Does Not Include
Mortgage payments can also include private mortgage insurance, HOA fees, lender fees, rate-lock costs, escrow adjustments, local taxes, and closing costs. The calculator is useful for comparing scenarios, but it does not replace a loan estimate from a lender.
Worked Example
For a $300,000 home with a 20% down payment, the loan principal is $240,000. Changing the interest rate or loan term can move the monthly payment substantially, which is why testing several scenarios is more useful than relying on one headline number.
Financial Disclaimer
Results are estimates for education and planning. Actual eligibility, interest rates, taxes, insurance, and closing costs depend on your location, credit profile, lender, property type, and market conditions.
Last reviewed: July 2026.