Mortgage Calculator with Taxes, Insurance and Amortization

Free home loan calculator. Estimate the monthly payment breakdown for your mortgage loan, taxes and insurance.

How Does LendingTree Get Paid?
LendingTree is compensated by companies on this site and this compensation may impact how and where offers appear on this site (such as the order). LendingTree does not include all lenders, savings products, or loan options available in the marketplace.

How Does LendingTree Get Paid?

LendingTree is compensated by companies on this site and this compensation may impact how and where offers appear on this site (such as the order). LendingTree does not include all lenders, savings products, or loan options available in the marketplace.
Privacy Secured  |  Advertising Disclosures
 
loading image

How to use our mortgage calculator to estimate a mortgage payment

Our mortgage loan calculator helps you determine your estimated monthly home loan payment. Here’s how to use it:

  1. Enter the home price. Input the purchase price for the home you want to buy. You can also test different home prices to see how it would affect the monthly mortgage payment.
  2. Select the loan term. Your loan term is the number of years it takes to pay off your mortgage. Choose a 30-year term for the lowest payment, or a 15-year term to save money on interest.
  3. Enter the down payment. A down payment is upfront money you pay to buy a home. Most loans require at least a 3% to 3.5% down payment. However, if your down payment is less than 20% when taking out a conventional loan, you’ll pay for private mortgage insurance (PMI). Our calculator automatically estimates your PMI payment based on your down payment amount. But if you aren’t using a conventional loan, you can uncheck the box next to “Include PMI” in the advanced options.
  4. Enter the mortgage rate. Check today’s mortgage rates for the most accurate interest rate. Otherwise, the payment calculator will supply a common interest rate.

Mortgage payment formula

If you prefer to do the math yourself using a mortgage payment formula, here’s the equation embedded in the mortgage calculator that you can use to estimate your home loan payments:

A = P[r (1+r)n]/[(1+r)n-1]

A = Payment amount per period
P = Initial principal balance (loan amount)
r = Interest rate per period
n = Total number of payments or periods

Average current mortgage interest rates

Loan Product
Interest Rate
APR
30-year fixed rate
6.97%
7.30%
20-year fixed rate
6.21%
6.47%
15-year fixed rate
6.03%
6.28%
10-year fixed rate
6.75%
7.26%
FHA 30-year fixed rate
6.10%
6.77%
30-year 5/1 ARM
6.11%
6.79%
VA 30-year 5/1 ARM
5.73%
6.24%
VA 30-year fixed rate
6.02%
6.22%
VA 15-year fixed rate
5.49%
5.87%

Average rates disclaimer Current average rates are calculated using all conditional loan offers presented to consumers nationwide by LendingTree’s network partners over the past seven days for each combination of loan program, loan term and loan amount. Rates and other loan terms are subject to lender approval and not guaranteed. Not all consumers may qualify. See LendingTree’s Terms of Use for more details.

What's included in your monthly mortgage payment?

The mortgage calculator estimates a payment that includes principal, interest, taxes and insurance — also known as a PITI payment. These four key components help you estimate the total cost of homeownership.

PITI breakdown:

Principal: The amount you pay each month toward your loan balance.

Interest: The amount your lender charges each month in interest fees, which are the costs associated with taking out a mortgage.

Property taxes: Our home loan calculator divides your annual property tax bill by 12 to get the monthly tax amount.

Homeowners insurance: Your annual home insurance premium is divided by 12 and added to your monthly payment.

What about closing costs?

When you take out a mortgage, you’ll need to pay closing costs, including origination fees, application fees and credit check fees. These costs are usually separate, upfront expenses, but some lenders may allow you to roll them into your mortgage. This reduces the cash amount you’ll need on closing day, but may result in higher monthly payments and increased interest costs over time.

What is the average mortgage payment on a $300,000 house?

The monthly mortgage payment on a $300,000 house would likely be around $1,981 at current market rates. That estimate assumes a 6.9% interest rate and at least a 20% down payment, but your monthly payment will vary depending on your exact interest rate and down payment amount.

Why your fixed-rate mortgage payment might go up

Even if you have a fixed-rate mortgage, some scenarios could result in a higher payment:

  • Property tax increases. Local and state governments may recalculate the tax rate, and a higher tax bill will increase your overall payment. Think the increase is unjustified? Check your local treasury or county tax assessor’s office to see if you’re eligible for a homestead exemption, which reduces your home’s assessed value to keep your taxes affordable.
  • Higher homeowners insurance premiums. Like any type of insurance product, homeowners insurance can — and often does — rise with time. Compare homeowners insurance quotes from several companies if you’re not happy with the renewal rate you’re offered each year.

How our calculator can guide your home loan decisions

There are important financial choices to make when buying a home. A mortgage payment calculator can help you decide if you should:

  • Pay extra to avoid or lower your monthly mortgage insurance premium. PMI premiums depend on your loan-to-value (LTV) ratio, which is how much of your home’s value you borrow. A lower LTV ratio equals a lower insurance premium, and you can skip PMI with at least a 20% down payment.
  • Choose a shorter term to build equity faster. If you can afford higher monthly payments, your home equity — the difference between your loan balance and home value — will grow faster. The amortization schedule will show you what your loan balance is at any point during your loan term.
  • Skip a neighborhood with pricey HOA fees. Those HOA benefits may not be worth it if they strain your budget.
  • Make a larger down payment to get a lower monthly payment. The more you put down, the less you’ll pay each month. A calculator can also show you how big a difference getting over the 20% threshold makes for borrowers taking out conventional loans.
  • Rethink your housing needs if the payment is higher than expected. Do you really need four bedrooms, or could you work with just three? Is there a neighborhood with lower property taxes nearby? Could you commute an extra 15 minutes to save $150 on your monthly mortgage payment?

What is amortization and how does it work?

Amortization is the mathematical process that divides the money you owe into equal payments, accounting for your loan term and interest rate. When a lender amortizes a loan, they create a schedule that tells you when each payment will be due and how much of each payment will go to principal versus interest.

 Think a shorter term will work for you? See 15-year mortgage rates

How much house can I afford?

You can use a home loan payment calculator to help manage your budget and see how a monthly mortgage payment will impact your overall finances. But first, you’ll need to understand how lenders calculate what you can afford.

How lenders decide how much you can afford

Lenders use your debt-to-income (DTI) ratio to decide how much to lend you. Your DTI ratio is calculated by dividing your total monthly debt — including your new mortgage payment — by your monthly pretax income.

DTI requirements vary by loan type and lender, but generally range from 41% to 45%. But if you know you can afford it and want a higher debt load, some loan programs — known as nonqualified mortgage or “non-QM” loans — allow higher DTI ratios.

Example: How DTI ratio is calculated

Let’s say your total monthly debt is $650 and your pretax income is $5,000 per month. You’re considering a mortgage with a $1,500 monthly payment. Based on $2,150 in total monthly debt payments, your DTI ratio would be 43% ($2,150 ÷ $5,000).

How you can decide what you can afford

Before committing to a mortgage loan, sit down with a year’s worth of bank statements to get a feel for how much you spend each month. This will give you a realistic sense of the monthly mortgage payment you could afford without stretching your finances too thin.

There are a few rules of thumb you can go by:

  • Spend no more than 30% of your income on housing. Your housing expenses — including mortgage, taxes and insurance — shouldn’t exceed 30% of your gross income. If they do, you may want to consider scaling back your budget.
  • Spend no more than 36% of your income on debt. Your total monthly debt load, including mortgage payments and other debt you’re repaying (like auto loans, personal loans or credit cards), shouldn’t exceed 36% of your income.

Why shouldn’t I use the full mortgage loan amount my lender is willing to approve?

  1. Lenders don’t consider all your expenses. A mortgage loan application doesn’t require information about car insurance, entertainment costs, groceries and other lifestyle expenses, which can take up a big chunk of your budget.
  2. Your take-home pay is less than the income lenders use to qualify you. Lenders look at your before-tax income for a mortgage, but you live off what you take home after your paycheck deductions. Be sure you have leftover cash after you subtract the new mortgage payment.

How much money do I need to make to qualify for a $400,000 mortgage?

The answer depends on several factors, including your interest rate, down payment amount and how much of your income you’re comfortable putting toward your housing costs each month. Assuming a 6.9% interest rate and a down payment under 20%, you’d need to earn at least $150,000 a year to qualify for a $400,000 mortgage.

That’s because most lenders’ minimum mortgage requirements don’t usually allow you to take on a mortgage payment that would amount to more than 28% of your monthly income. The monthly payments on that loan would be about $3,301.

Is $2,000 a month too much for a mortgage?

A $2,000 per month mortgage payment is too much for borrowers earning less than $92,400 a year, according to typical financial advice. How do we know? A conservative or comfortable DTI ratio is usually considered to be anywhere from 1% to 26%, if you only include mortgage debt. A $2,000 per month mortgage payment represents a 26% DTI if you earn $92,400 per year.

How to lower your estimated mortgage payment

Try one or all of the following tips to reduce your monthly mortgage payment:

  • Choose the longest term possible. A 30-year fixed-rate loan will give you the lowest monthly payment compared to shorter-term loans. However, it will generally cost you more in interest.
  • Make a bigger down payment. Your principal and interest payments, as well as your interest rate, will typically drop with a smaller loan amount, and you’ll reduce your PMI premium. Plus, with a 20% down payment, you’ll eliminate the need for PMI altogether.
  • Consider an adjustable-rate mortgage (ARM). If you only plan to live in your home for a few years, ask your lender about an ARM loan. The initial rate is typically lower than fixed rates for a set time period; once the teaser rate period ends, though, the rate will adjust and is likely to increase.
  • Shop for the best rate possible. LendingTree data show that comparing mortgage quotes from three to five lenders can save you big on your monthly payments and interest charges over the life of the loan.
leaf-icon Ready to get personalized quotes from top lenders?

Next steps: Start the home loan process

  1. Explore mortgage types and requirements.
  2. Get a mortgage preapproval letter.
  3. Shop for the right mortgage lender.