Mortgage Calculator
Calculate your monthly mortgage payment including principal, interest, taxes, insurance, and PMI.
Today's Mortgage Rates
Source: Freddie Mac Primary Mortgage Market Survey. Click any rate to apply it.
Taxes & Insurance (Escrow)
Private Mortgage Insurance (PMI)
Required when down payment is less than 20%
Total Monthly Payment
$2,155
Principal
$280,000
Interest
$326,292
Taxes & Ins.
$169,500
Total Cost Breakdown
Yearly Payment Breakdown
Amortization Schedule
| Year | Payment | Principal | Interest | Escrow | Balance |
|---|---|---|---|---|---|
| Year 1 | $25,860 | $3,419 | $16,791 | $5,650 | $276,581 |
| Year 2 | $25,860 | $3,631 | $16,579 | $5,650 | $272,950 |
| Year 3 | $25,860 | $3,856 | $16,353 | $5,650 | $269,093 |
| Year 4 | $25,860 | $4,095 | $16,114 | $5,650 | $264,998 |
| Year 5 | $25,860 | $4,349 | $15,860 | $5,650 | $260,649 |
| Year 6 | $25,860 | $4,619 | $15,591 | $5,650 | $256,030 |
| Year 7 | $25,860 | $4,905 | $15,304 | $5,650 | $251,124 |
| Year 8 | $25,860 | $5,209 | $15,000 | $5,650 | $245,915 |
| Year 9 | $25,860 | $5,532 | $14,677 | $5,650 | $240,383 |
| Year 10 | $25,860 | $5,875 | $14,334 | $5,650 | $234,508 |
| Year 11 | $25,860 | $6,240 | $13,970 | $5,650 | $228,268 |
| Year 12 | $25,860 | $6,626 | $13,583 | $5,650 | $221,642 |
| Year 13 | $25,860 | $7,037 | $13,173 | $5,650 | $214,605 |
| Year 14 | $25,860 | $7,473 | $12,736 | $5,650 | $207,131 |
| Year 15 | $25,860 | $7,937 | $12,273 | $5,650 | $199,194 |
| Year 16 | $25,860 | $8,429 | $11,781 | $5,650 | $190,766 |
| Year 17 | $25,860 | $8,951 | $11,258 | $5,650 | $181,814 |
| Year 18 | $25,860 | $9,506 | $10,704 | $5,650 | $172,308 |
| Year 19 | $25,860 | $10,096 | $10,114 | $5,650 | $162,213 |
| Year 20 | $25,860 | $10,721 | $9,488 | $5,650 | $151,491 |
| Year 21 | $25,860 | $11,386 | $8,824 | $5,650 | $140,105 |
| Year 22 | $25,860 | $12,092 | $8,118 | $5,650 | $128,013 |
| Year 23 | $25,860 | $12,842 | $7,368 | $5,650 | $115,171 |
| Year 24 | $25,860 | $13,638 | $6,572 | $5,650 | $101,534 |
| Year 25 | $25,860 | $14,483 | $5,727 | $5,650 | $87,051 |
| Year 26 | $25,860 | $15,381 | $4,829 | $5,650 | $71,669 |
| Year 27 | $25,860 | $16,335 | $3,875 | $5,650 | $55,335 |
| Year 28 | $25,860 | $17,347 | $2,862 | $5,650 | $37,988 |
| Year 29 | $25,860 | $18,423 | $1,787 | $5,650 | $19,565 |
| Year 30 | $25,860 | $19,565 | $645 | $5,650 | $0 |
How This Mortgage Calculator Works
This calculator estimates your monthly mortgage payment based on the loan amount, interest rate, loan term, and optional factors like property taxes, homeowners insurance, and private mortgage insurance (PMI). Unlike most online mortgage calculators, this one pulls live mortgage rate data from the Federal Reserve Economic Data (FRED) API, so the default rate you see reflects current market conditions — not a number someone typed in six months ago.
What's included in your monthly payment
Your total monthly payment is made up of four components, often called PITI:
Principal is the portion that pays down your loan balance. In the early years of a mortgage, very little of your payment goes toward principal — most goes to interest. The amortization schedule above shows exactly how this shifts over time.
Interest is what the lender charges you to borrow the money. Even a small rate difference has a massive impact over 30 years. On a $350,000 loan, the difference between 6.0% and 6.5% is roughly $41,000 in total interest.
Taxes and insurance (escrow) are estimated based on national averages but can be adjusted to match your actual property tax rate and insurance premium. Many lenders require these to be held in an escrow account and paid on your behalf.
PMI applies when your down payment is less than 20% of the home's purchase price. This calculator automatically includes PMI when applicable and shows when it drops off as you build equity. PMI typically costs between 0.5% and 1.5% of the original loan amount per year.
ARM vs. fixed-rate mortgages
This calculator supports both fixed-rate and adjustable-rate mortgages (ARMs). A fixed-rate mortgage locks your interest rate for the entire loan term. An ARM starts with a lower introductory rate that adjusts after a set period — typically 5, 7, or 10 years.
ARMs can save money if you plan to sell or refinance before the adjustment period begins. But if rates rise and you stay in the home, your payment could increase significantly. Use the ARM toggle above to compare both scenarios side by side.
Example scenarios
First-time buyer
$350K home · 10% down · 6.5% · 30 years
~$2,450/mo
Includes ~$131/mo PMI until 20% equity
Move-up buyer
$550K home · 20% down · 6.25% · 30 years
~$2,713/mo
No PMI · ~$537K total interest over life of loan
Aggressive payoff
$440K loan · 6.25% · 15 years
~$3,776/mo
Save ~$300K in interest vs. 30-year term
Frequently Asked Questions
How much house can I afford on my salary?
A common guideline is the 28/36 rule: spend no more than 28% of your gross monthly income on housing costs, and no more than 36% on total debt payments. On a $75,000 salary, that's roughly $1,750/month for housing. But “afford” depends on your full financial picture — existing debt, savings, and local cost of living all matter. Use the Home Affordability Calculator for a more personalized estimate.
How much do I need for a down payment?
Conventional loans typically require 3% to 20% down. FHA loans allow as little as 3.5%. VA and USDA loans offer 0% down for qualifying borrowers. Putting down less than 20% means you'll pay PMI, which this calculator factors in automatically. On a $300,000 home, a 10% down payment is $30,000 versus $60,000 at 20% — but the lower down payment adds roughly $100–$175/month in PMI.
What's the difference between interest rate and APR?
The interest rate is the cost of borrowing the principal. The APR (Annual Percentage Rate) includes the interest rate plus other loan costs like origination fees, discount points, and mortgage insurance — giving you a more complete picture of the loan's true cost. When comparing lender offers, APR is the better number to use. This calculator uses the interest rate for monthly payment estimates.
How does the amortization schedule work?
The amortization schedule shows how each monthly payment is split between principal and interest over the life of the loan. In the first years, the majority goes to interest. By the end of the loan, nearly all of it goes to principal. The chart above visualizes this shift so you can see exactly when the crossover happens.
Should I choose a 15-year or 30-year mortgage?
A 15-year mortgage has higher monthly payments but saves a substantial amount in total interest and builds equity faster. A 30-year mortgage keeps payments lower, giving you more monthly flexibility. On a $350,000 loan at 6.5%, the 15-year payment is about $3,050/month versus $1,990 for 30 years — but you save approximately $267,000 in interest with the shorter term.
When does PMI go away?
By law, lenders must automatically cancel PMI when your loan balance reaches 78% of the original home value. You can request cancellation earlier once you reach 80% loan-to-value. On a 30-year loan with 10% down, PMI typically drops off around year 8–10, depending on your rate and appreciation. This calculator shows the estimated PMI removal point in your results.
Are the mortgage rates shown here current?
Yes. This calculator pulls the most recent average mortgage rate data from the Federal Reserve's FRED database, updated weekly. The rate displayed reflects the national average for a 30-year fixed-rate mortgage. Your actual rate will vary based on credit score, down payment, loan type, and lender — but the default gives you a realistic starting point for estimates.
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