Mortgage Payment Calculator
Calculate your full monthly mortgage payment — principal, interest, property tax, homeowners insurance, and PMI. Free, instant, accurate for any US state.
How the mortgage payment calculator works
Your monthly mortgage payment has five parts, commonly grouped as PITI + PMI + HOA: principal, interest, property taxes, homeowners insurance, private mortgage insurance when you put less than 20% down, and an optional homeowners-association fee.
Principal & interest
Principal is the chunk of your loan balance you pay down each month. Interest is what the lender charges on the remaining balance. Early in a 30-year loan, most of your payment goes to interest; later, most goes to principal.
Property tax & insurance
Most lenders collect 1/12 of your annual property tax and homeowners insurance along with every mortgage payment and hold them in escrow. Property tax varies widely by state — from around 0.4% in Alabama to over 2% in New Jersey and Illinois.
PMI (Private Mortgage Insurance)
When your down payment is below 20%, conventional lenders add PMI to protect themselves if you default. PMI typically runs 0.3%–1.2% of the loan per year and drops off automatically once you cross 78% loan-to-value.
Tips to lower your monthly payment
- Put at least 20% down to drop PMI
- Compare at least three lenders — always by APR, not headline rate
- Raise your credit score above 740 before you apply to unlock the best pricing
- Consider a 15-year loan if cashflow allows — dramatically less total interest
- Buy discount points if you plan to stay long enough to break even
Frequently asked questions
How is a monthly mortgage payment calculated?
Monthly PITI = principal + interest (from the standard amortization formula) + 1/12 of annual property tax + 1/12 of annual homeowners insurance + PMI when your down payment is less than 20%.
What is PITI?
PITI is an acronym for Principal, Interest, Taxes, and Insurance — the four recurring monthly costs of a mortgaged home.
Do I pay PMI on every mortgage?
No. PMI is required on conventional loans when you put down less than 20%. FHA loans carry an equivalent called MIP regardless of down payment. VA and most USDA loans have no monthly PMI.
What is a good mortgage rate in 2026?
Rates move daily and vary by credit score, loan type, and lender. Compare at least three lenders and always compare by APR, which includes fees.
How do I lower my monthly mortgage payment?
Larger down payment, longer term, discount points, better credit score, or refinancing when rates drop by at least 0.75–1 percentage point.