Mortgage Calculator — USA (2026)

What's in a US monthly payment

A US mortgage payment is often called PITI: Principal, Interest, Taxes and Insurance. This calculator breaks out principal & interest, adds your property tax, includes PMI when applicable, and lets you add HOA dues for a realistic total.

How US mortgages work

Most US home loans are fully amortizing, which means you pay the same amount every month and, by the end of the term, the loan is completely paid off. Each payment covers the interest that has built up since the last one, and whatever is left over goes toward reducing the balance you still owe (the principal). Because the balance is large at the start, early payments are mostly interest; as the balance shrinks, more of each payment chips away at principal. This shift is what the amortization schedule above shows.

The single most common home loan in the US is the 30-year fixed-rate mortgage. "Fixed" means the interest rate — and therefore the principal-and-interest portion of your payment — never changes for the whole loan. That predictability is why fixed rates are so popular. Shorter fixed terms such as 15 or 20 years work the same way but pay the loan off faster. Your lender then usually collects property tax and insurance alongside the loan payment and holds the money in an escrow account until those bills come due, so your total monthly outlay is larger than principal and interest alone.

What each input means

• Home price — the agreed purchase price of the property. This is the starting point for everything else, including how much you need to borrow.
• Down payment — the cash you pay upfront. The rest is the loan. A larger down payment means a smaller loan, lower monthly payments, and — once it reaches roughly 20% of the price — usually no PMI. The hint next to this field shows your down payment as a percentage.
• Interest rate — the annual percentage the lender charges to borrow. Enter it as a yearly rate; the calculator converts it to a monthly figure internally. Even a fraction of a percent changes both your monthly payment and your total interest.
• Loan term — how many years you take to repay. A longer term lowers the monthly payment but raises the total interest you pay over the life of the loan.
• Property tax (annual) — what your local government charges each year, based on the assessed value of the home. The calculator divides this into a monthly amount and adds it to your payment.
• HOA (monthly) — dues charged by a homeowners association in many condos and planned communities. Enter zero if your property has none. HOA fees are not part of the loan, but they are a real monthly housing cost, so they're included in the total.

Worked example

Here is a simple, illustrative example — the figures are rounded and hypothetical, not a quote or a prediction. Suppose a $400,000 home with 20% down (that's $80,000), leaving a $320,000 loan at an example 6.5% rate over 30 years.

• The loan amount is $400,000 − $80,000 = $320,000.
• Spread over 30 years (360 monthly payments) at the example rate, the principal-and-interest payment works out to roughly $2,020 a month.
• Because the down payment is 20%, no PMI applies in this example.
• If annual property tax were about $4,800, that adds roughly $400 a month, bringing the total to around $2,420 before any HOA or homeowners insurance.
• Over the full 30 years, total interest on the loan would come to well over $400,000 — more than the amount originally borrowed. This is why the term and rate matter so much.

Change any input above and the calculator redoes this math instantly for your own numbers.

PMI: private mortgage insurance

If you put down less than 20%, lenders typically require PMI, which protects the lender (not you) and adds to your monthly cost — commonly around 0.5% of the loan per year. Unlike Canada's CMHC, PMI usually isn't added to the loan; it's a monthly charge that can be removed once you reach about 20% equity.

Escrow, taxes and insurance

Beyond principal and interest, most US homeowners pay their property tax and insurance through an escrow account managed by the lender. Instead of paying a large tax or insurance bill once or twice a year, you pay one-twelfth of the estimated total each month; the lender holds it and pays the bills on your behalf when they come due. Because tax and insurance amounts can change from year to year, your total monthly payment can rise or fall even on a fixed-rate loan — the principal-and-interest part stays the same, but the escrow part adjusts. Homeowners insurance protects your property and belongings and is generally required by the lender, while property tax funds local services such as schools and roads.

Property tax and HOA

Property tax varies enormously by location — from well under 1% to over 2% of home value per year. HOA dues apply to many condos and planned communities. Both materially change affordability, so they're included here.

Fixed vs adjustable-rate (ARM)

A fixed-rate mortgage keeps the same interest rate for the entire term, so your principal-and-interest payment never changes. An adjustable-rate mortgage (ARM) starts with a fixed rate for an introductory period — often shown as something like 5/1 or 7/1, meaning the rate is fixed for the first 5 or 7 years — and then adjusts periodically based on a market index. ARMs often start with a lower rate, which can mean smaller early payments, but the rate (and your payment) can rise later, sometimes significantly. Fixed rates trade a potentially higher starting rate for certainty. This calculator models a fixed rate; if you are considering an ARM, treat the rate you enter as the introductory rate only, and remember that later payments could be higher.

Points

"Points," or discount points, are an optional upfront fee you can pay at closing to lower your interest rate. One point typically costs 1% of the loan amount and buys a modest reduction in the rate. Paying points can make sense if you plan to keep the loan for many years, because the monthly savings add up over time; it makes less sense if you expect to sell or refinance soon, since you may not stay long enough to recover the upfront cost. Points are separate from the down payment and from other closing costs.

Key terms

• Principal — the amount you borrow and still owe. Every payment reduces it a little.
• Interest — the cost of borrowing, charged as a percentage of the outstanding principal.
• Amortization — the schedule by which a loan is paid off in equal payments over a set term.
• PMI — private mortgage insurance, usually required when the down payment is under 20%, protecting the lender.
• Escrow — an account the lender uses to collect and pay your property tax and insurance in monthly installments.
• APR vs interest rate — the interest rate is the cost of borrowing alone; the APR (annual percentage rate) folds in certain lender fees, so it is usually a little higher and helps you compare loans on a like-for-like basis.
• ARM — an adjustable-rate mortgage, whose rate can change after an initial fixed period.
• Points — an optional upfront fee paid to reduce the interest rate.

Common mistakes to avoid

• Budgeting for principal and interest only. Property tax, insurance, PMI and HOA can add hundreds of dollars a month. Look at the full total, not just the loan payment.
• Forgetting closing costs. Buying a home involves upfront fees beyond the down payment. Make sure you have cash for both.
• Ignoring the total interest figure. A lower monthly payment from a longer term can quietly cost far more over the life of the loan. Check the total interest, not just the monthly number.
• Assuming PMI is permanent. PMI can usually be removed once you build enough equity, so it need not be a lifelong cost — but you often have to request its removal.

Reading the schedule

The amortization table shows how each payment splits between principal and interest. Early on it's mostly interest; see our guide for how extra payments cut total interest.

Frequently asked questions

How is a monthly mortgage payment calculated?

Your monthly mortgage payment is based on three things: the loan amount (principal), the interest rate, and the loan term (usually 15 or 30 years). The calculator uses a standard amortization formula to spread the loan plus interest evenly across every month of the term. Property tax and insurance, if included, are added on top.

What's included in my mortgage payment?

A typical US mortgage payment has four parts, often called PITI: Principal, Interest, Taxes and Insurance. Principal and interest repay the loan itself, while taxes (property tax) and insurance (homeowners and sometimes PMI) are collected by your lender and paid on your behalf. This calculator focuses on principal and interest, the core of your payment.

How does the loan term affect my payment?

A shorter term like 15 years means higher monthly payments but far less total interest paid, while a 30-year term lowers your monthly payment but costs much more in interest over time. Choosing between them is a trade-off between monthly affordability and lifetime cost.

What is mortgage amortization?

Amortization is how your loan is paid down over time. In the early years most of each payment goes toward interest, and only later does more go toward the principal. To understand how this shifts over the life of your loan, read how to read a mortgage amortization schedule.

How much interest will I pay over the loan?

Total interest depends on your rate, term and loan size, and it can add up to a large share of the home's price over 30 years. Even a small difference in interest rate changes the total significantly, which is why comparing rates matters so much.

How much down payment do I need?

There is no single required amount, and it depends on the loan program. Putting down 20% of the price is a common benchmark because it usually lets you avoid PMI, but many buyers put down less. A larger down payment lowers your loan, your monthly payment and your total interest, while a smaller one keeps more cash in hand but generally costs more each month.

What is PMI and can I get rid of it?

PMI, or private mortgage insurance, is a charge lenders typically require when your down payment is under 20%. It protects the lender if you default and adds to your monthly cost. As you pay down the loan and build equity, PMI can usually be cancelled once you reach around 20% equity — though you often have to request removal rather than wait for it to drop off automatically.

What's the difference between the interest rate and the APR?

The interest rate is the cost of borrowing the money by itself. The APR, or annual percentage rate, also includes certain lender fees, so it is usually a little higher than the interest rate. Comparing loans by APR gives you a more complete, like-for-like picture of the total cost, while the interest rate alone determines your principal-and-interest payment.

This calculator provides estimates for general information only and is not financial or tax advice. See our disclaimer.