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Calculate your exact monthly mortgage payment including principal, interest, taxes and insurance. Full amortization schedule included.

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Mortgage Calculator

Calculate your monthly payment and full amortization schedule.

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Monthly Payment
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Principal + interest
Total Payment
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Total Interest
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Loan Amount
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After down payment
Full Monthly
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w/ tax & insurance
Down Payment %
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Of home price
Amortization Overview
Amortization Schedule (5-year intervals)
YearBalancePrincipal PaidInterest PaidEquity

How is a Mortgage Payment Calculated?

Your monthly mortgage payment consists of four components — often called PITI: Principal, Interest, Taxes, and Insurance. The principal and interest portion is calculated using a standard amortization formula, while taxes and insurance are divided monthly and added on top.

M = P × [r(1+r)^n] / [(1+r)^n − 1]

Where M = monthly payment, P = loan principal, r = monthly interest rate (annual ÷ 12), n = total number of payments (years × 12).

How Much House Can You Afford?

A widely used guideline is the 28/36 rule: your monthly mortgage payment should not exceed 28% of your gross monthly income, and total debt payments should stay under 36%. For a household earning $8,000/month, that means a maximum mortgage payment of $2,240.

  • At 6.5% on a 30-year mortgage, a $2,240/month payment supports a loan of about $354,000
  • With a 20% down payment, that supports a home price of about $443,000
  • Reducing your rate by 1% increases buying power by roughly 10-12%

15-Year vs 30-Year Mortgage

The choice between a 15 and 30-year mortgage is one of the most common questions in home buying. Here's how a $320,000 loan at 6% compares:

  • 30-year: $1,919/month → Total interest: $370,840
  • 15-year: $2,703/month → Total interest: $166,540

The 15-year saves over $200,000 in interest but requires $784/month more. Many financial advisors suggest taking the 30-year and investing the difference — though this requires discipline.

Frequently Asked Questions

What is a good down payment for a house?
20% is the gold standard — it eliminates Private Mortgage Insurance (PMI), which typically costs 0.5–1.5% of the loan per year. However, many loan programs allow 3–10% down for first-time buyers. FHA loans require as little as 3.5% down with a 580+ credit score.
What is PMI and when can I remove it?
Private Mortgage Insurance (PMI) is required when your down payment is less than 20%. It protects the lender if you default. You can request PMI removal once your loan-to-value ratio reaches 80% (20% equity). It automatically cancels at 78% LTV under federal law.
Should I pay points to lower my interest rate?
Mortgage points (discount points) cost 1% of the loan and typically lower your rate by 0.25%. Calculate your break-even point: if 1 point saves you $50/month on a $500,000 loan, it takes 100 months (~8.3 years) to break even. If you plan to stay longer than that, buying points makes sense.
How does making extra payments affect my mortgage?
Extra payments go directly toward principal, reducing the balance on which future interest is calculated. Making one extra payment per year on a 30-year mortgage at 6% can cut about 4–5 years off the loan and save tens of thousands in interest.
What credit score do I need for a mortgage?
Conventional loans typically require 620+, while the best rates go to borrowers with 740+. FHA loans accept 580+ with 3.5% down, or 500–579 with 10% down. VA and USDA loans have no official minimum but most lenders require 620+.