Mortgage Payment Calculator
Calculate your monthly mortgage payments, total interest, and total cost of your home loan. Includes a complete amortization schedule showing how each payment is applied to principal and interest over the life of your mortgage. Updated for 2026 rates and conforming loan limits.
How Mortgage Payments Work
A mortgage payment typically consists of four components, often referred to as PITI:
- Principal: The amount borrowed to purchase the home.
- Interest: The cost of borrowing money, calculated as a percentage of the outstanding balance.
- Taxes: Property taxes assessed by local governments.
- Insurance: Homeowners insurance to protect against damage or loss.
The monthly payment is calculated using the standard loan amortization formula:
M = P × [ r(1 + r)n ] / [ (1 + r)n - 1 ]
Where:
M = Monthly payment (principal + interest)
P = Principal (loan amount)
r = Monthly interest rate (Annual rate ÷ 12)
n = Total number of payments (loan term in months)
2026 Mortgage Rate Context: As of July 2026, the average 30-year fixed mortgage rate is approximately 6.5-6.6%, according to Bankrate and Forbes Advisor. The conforming loan limit for 2026 is $832,750 for most of the U.S..
Understanding Your Amortization Schedule
The amortization schedule shows how each monthly payment is divided between principal and interest. Early in the loan, a larger portion goes toward interest; later, more goes toward principal. This is because interest is calculated on the outstanding balance, which decreases over time.
Example: A $280,000 loan at 6.5% for 30 years:
- Monthly Payment: ~$1,770 (principal + interest)
- Total Interest: ~$357,000
- Total Cost: ~$637,000
Adding just $100 extra per month can shorten your loan term by years and save tens of thousands in interest. Use the "Extra Monthly Payment" option in advanced settings to see the impact.
Smart Mortgage Strategies
- 20% Down Payment: Avoids PMI and lowers your monthly payment significantly. The 2026 conforming loan limit of $832,750 means you can finance up to that amount with a conventional loan.
- Shorter Loan Terms: A 15-year mortgage has higher monthly payments but saves substantial interest. For a $280,000 loan at 6.5%: 15-year ($2,439/month, $159,000 interest) vs 30-year ($1,770/month, $357,000 interest) — save $198,000 in interest!
- Shop Around: Rates vary by lender. A 0.5% rate difference on a $300,000 loan saves about $95/month and $34,000 over 30 years.
- Consider Points: Paying discount points upfront can lower your interest rate. Each point costs 1% of the loan amount and typically reduces the rate by 0.25%.
❓ Mortgage Payment Calculator FAQ
What is the average mortgage rate for 2026?
As of July 2026, the average 30-year fixed mortgage rate is approximately 6.5-6.6%, according to Bankrate and Forbes Advisor. Rates have been in the low-to-mid 6% range through 2026.
What is the conforming loan limit for 2026?
The 2026 conforming loan limit for one-unit properties is $832,750 in most of the U.S., a 3.3% increase from the 2025 limit of $806,500. In high-cost areas, the limit reaches $1,249,125.
What is PITI in a mortgage payment?
PITI stands for Principal, Interest, Taxes, and Insurance — the four components of a typical mortgage payment. This calculator includes all four components to give you a complete estimate of your total monthly housing cost.
What is PMI and when do I need it?
Private Mortgage Insurance (PMI) is required when your down payment is less than 20% of the home's purchase price. PMI protects the lender if you default on your loan. It typically costs 0.3-1.5% of the loan amount annually and is included in your monthly payment.
How does a larger down payment affect my mortgage?
A larger down payment reduces the loan amount, which lowers your monthly payment and total interest. It also helps you avoid PMI if you put at least 20% down. For a $350,000 home, a 20% down payment ($70,000) saves you from PMI and reduces your loan to $280,000.
What is the difference between a 15-year and 30-year mortgage?
A 15-year mortgage has higher monthly payments but significantly lower total interest. A 30-year mortgage has lower monthly payments but costs more in interest over time. Choose based on your budget and financial goals.
How does the calculator handle property taxes and insurance?
The calculator adds your monthly property tax and home insurance costs to your principal and interest payment. This gives you a complete PITI estimate — your actual total monthly housing cost.
What is an amortization schedule?
An amortization schedule shows how each monthly payment is divided between principal and interest over the life of the loan. It also shows the remaining balance after each payment. This calculator includes a full amortization schedule showing every single payment.
How does making extra payments affect my mortgage?
Extra payments reduce your principal balance faster, which lowers the total interest you pay and can shorten your loan term. Even small extra payments ($50-100/month) can save thousands in interest and reduce your loan term by years.
What is the difference between APR and interest rate?
The interest rate is the cost of borrowing the principal loan amount. APR (Annual Percentage Rate) includes the interest rate plus other fees and costs associated with the loan, giving you a more complete picture of the loan's total cost.
What are discount points and should I buy them?
Discount points are upfront fees you pay to lower your interest rate. Each point costs 1% of the loan amount and typically reduces the rate by about 0.25%. Buying points makes sense if you plan to stay in the home long enough to recoup the cost through lower monthly payments.
How do I know if I can afford a mortgage?
Use the 28/36 rule: your housing costs (principal, interest, taxes, insurance) should not exceed 28% of your gross monthly income, and your total debt (including housing) should not exceed 36%. Use our Home Affordability Calculator for a detailed analysis.
What is the mortgage interest deduction for 2026?
For 2026, the standard deduction is $16,100 for single filers and $32,200 for married couples filing jointly. The mortgage interest deduction allows you to deduct interest on qualified debt up to $750,000.
How accurate is this mortgage calculator?
This calculator provides accurate estimates based on standard mortgage formulas and the values you enter. Actual loan terms may vary by lender, and factors like credit score, employment history, and assets also affect your final approval. Use this as a planning tool, not a guarantee.
Should I get pre-approved before house hunting?
Yes. Pre-approval gives you a clear budget, makes your offer more attractive to sellers, and locks in your interest rate for a period. Use this calculator to understand your budget before you start shopping.
Why does the amortization schedule show all payments?
This calculator displays the full amortization schedule with every payment over the life of the loan. You can scroll through all payments to see exactly how your balance decreases over time. The schedule is scrollable so you can view any payment period you choose.