Mortgage Calculator with Taxes, Insurance and Amortization
Free home loan calculator to estimate your monthly mortgage payment and compare rates from more than 300 lenders.
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How to use LendingTree’s mortgage calculator to estimate a mortgage payment
You only need four pieces of information to get started with our simple mortgage calculator. Here’s how to use it:
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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. -
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. -
Enter the down payment
A down payment is upfront money you contribute toward your home purchase. 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. -
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.
- Choose the start date. This is the date you’ll start making payments. The home loan calculator defaults to today’s date unless you enter a different one.
- Enter the home insurance. Lenders require you to get homeowners insurance to repair or replace your home from a fire, theft or other loss. Our mortgage calculator automatically generates an estimated annual cost based on your home price, but you can enter a different amount.
- Enter the property taxes. Our mortgage calculator assumes a property tax rate equal to 1.25% of your home’s value, but actual property tax rates vary by location. Contact your local county assessor’s office to get the exact figure if you’d like to calculate a more precise monthly payment estimate.
- Enter any HOA fees. If you’re buying in a neighborhood governed by a homeowners association (HOA), you can add the monthly fee amount.
What LendingTree’s calculator includes in your monthly mortgage payment
The mortgage calculator generates a payment estimate that includes principal, interest, taxes and insurance payment — also known as a PITI payment. These four key components help you estimate the total cost of homeownership.
Here’s a breakdown of each:
Principal
How much you’ll 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 calculate the monthly amount.
Homeowners insurance
The calculator divides your annual homeowners insurance premium by 12 and adds that amount to your monthly payment.
Amortization
In addition to your monthly mortgage payment amount, the calculator will also generate an amortization table for your loan.
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 is due and how much of each payment will go toward principal and interest.
An amortization schedule will show that:
- You’ll pay less interest each month.
- You’ll pay more principal each month.
- Your loan balance decreases with each payment.
- Your monthly principal and interest payment is always the same.
- Fixed-rate mortgages are “fully amortizing,” which means you’ll have paid the balance in full once you make all of your payments.
The monthly mortgage payment on a $300,000 house would likely be around $2,372 at current market rates. That estimate assumes a 6.4% interest rate and at least a 3% down payment, but your monthly payment will vary depending on your exact interest rate and down payment amount.
Understanding how to calculate your mortgage payment (using the mortgage payment formula)
If you’re an old-school math whiz, here’s the formula embedded in the mortgage calculator:
A = P[r (1+r)n]/[(1+r)n-1]
| Variable | What it means | What you need to know |
|---|---|---|
| A | Monthly payment | This is what you’re solving for. |
| P | Principal (the total loan amount) | The principal is the amount you borrow, not the home’s purchase price. If the home costs $400,000 and you put down $80,000 (20%), your loan principal is $320,000. |
| r | Monthly interest rate (your annual rate divided by 12) | Lenders quote annual interest rates, but the formula uses a monthly figure. Divide the annual rate by 12. A 6.5% annual rate becomes 0.065 ÷ 12 = 0.00542 per month. |
| n | Number of payments (loan term in years multiplied by 12) | A 30-year loan has 30 × 12 = 360 payments. A 15-year loan has 15 × 12 = 180 payments. A shorter term means a higher monthly payment but significantly less interest paid over the life of the loan. |
Example: 30-year fixed mortgage calculation
Scenario: $320,000 loan at 6.5% annual interest with a 30-year term.
Step 1: Identify your variables
| Variable | Value |
|---|---|
| Principal (P) | $320,000 |
| Annual interest rate | 6.50% |
| Monthly interest rate (r) | 0.065 ÷ 12 = 0.00541667 |
| Number of payments (n) | 30 × 12 = 360 |
Step 2: Solve (1+r)ⁿ
(1.00541667)360 = 6.991798
Step 3: Plug that into the formula
A = 320,000 × [0.00541667 × 6.991798] ÷ [6.991798 − 1]
A = 320,000 × [0.03787226] ÷ [5.991798]
A = 320,000 × 0.00632068
A = $2,022.62 per month
(This represents principal and interest only)
Step 4: Add taxes and insurance
The $2,023 above covers only principal and interest. Your actual monthly payment will be higher once you add:
- Property taxes: Typically 0.5% to 1.5% of the home’s value per year, divided by 12. On a $320,000 home at a 1.25% rate, that’s $320,000 × 0.0125 ÷ 12 = $333 per month.
- Homeowners insurance: Averages around $90 to $230 per month nationally, though it varies by location and coverage level.
- Private mortgage insurance (PMI): Required on conventional loans when the down payment is below 20%. On a $320,000 loan, that’s roughly $167/month until you reach 20% equity.
Step 5: Add up your full estimated payment
Principal and interest: $2,023
Property taxes: $333
Homeowners insurance: $93
PMI: $167
Total: $2,616
Average current mortgage interest rates
| Loan product | Interest rate | APR |
|---|---|---|
| 30-year fixed rate | 6.60% | 6.78% |
| 20-year fixed rate | 5.88% | 6.08% |
| 15-year fixed rate | 5.69% | 5.97% |
| 10-year fixed rate | 6.79% | 7.26% |
| FHA 30-year fixed rate | 6.20% | 6.84% |
| 30-year 5/1 ARM | 6.47% | 6.71% |
| VA 30-year 5/1 ARM | 5.49% | 6.02% |
| VA 30-year fixed rate | 5.80% | 5.99% |
| VA 15-year fixed rate | 5.29% | 5.69% |
Average rates disclaimer
Learn more about current mortgage rates or read our mortgage interest rates predictions for 2026.
How LendingTree’s calculator can guide your mortgage decisions
There are a lot of important money choices to make when you buy a home. A mortgage calculator can help you decide if you should:
- Choose a shorter term to build equity faster. If your budget can handle the higher monthly payments, your home equity — the difference between your loan balance and home value — will grow more quickly. If you look at an amortization schedule, you can see your exact outstanding loan balance at any point during your loan term.
- Skip a neighborhood with pricey HOA fees. Those HOA amenities may not be worth it if they put too much strain on your monthly 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.
- Explore lender-paid mortgage insurance. If you aren’t able to make a 20% down payment and want to avoid PMI, another option is lender-paid mortgage insurance (LPMI). LPMI doesn’t increase your mortgage payments as much as traditional PMI would, which can help keep your payments within your budget. However, it’s not free — you’ll have to pay a higher mortgage interest rate in exchange. A calculator can help you decide whether that extra interest is worth it.
- Rethink your housing needs if the payment is higher than expected. Don’t bite off more housing expenses than you can chew. Do you really need that fourth bedroom, or could you make it work with just three? Is there a neighborhood with lower property taxes nearby? Could you budget an extra 15 minutes in commuter traffic to live further away and save $150 on your monthly mortgage payment?
- Request PMI cancellation. Private mortgage insurance drops off automatically after you’ve paid your balance down to 78% of your home’s original value, and you can request cancellation even earlier.
- Pay extra to avoid or reduce your monthly mortgage insurance premium. PMI premiums are based on your loan-to-value (LTV) ratio, which measures how much of your home’s value is financed. A lower LTV ratio results in a lower mortgage insurance premium.
The formula to calculate loan-to-value ratio is:
LTV ratio = Loan amount ÷ Home value*
*Home value is your home’s purchase price or appraised value, whichever is lower.
For example: If you’re buying a house for $400,000 and making a 10% down payment, you’ll need a loan for $360,000. To calculate the LTV ratio on that loan:
$360,000 ÷ $400,000 = 0.90
= 90% LTV ratio
How much house can I afford?
You can use LendingTree’s mortgage 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 house 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 ratio 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 mortgages or “non-QM” loans — allow higher DTI ratios.
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).
Use our DTI calculator to see what your DTI ratio is today.
How to 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 28% of your income on housing
Your housing expenses — including mortgage, taxes and insurance — shouldn’t exceed 28% of your gross income. If they do, you may want to consider dialing back how much you’re willing to take on. -
Spend no more than 36% of your income on debt
Your total monthly debt load, including your mortgage payments and any other debt you’re repaying — like car loans, personal loans or credit cards — shouldn’t exceed 36% of your income.
- 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.
- 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 to lower your estimated 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
Shopping with three to five lenders ensures that you’ll get the lowest rate available to you in today’s market, which saves shoppers an average of $62,572 over the life of a 30-year loan, according to a LendingTree analysis.
When is my first mortgage payment due after closing?
Your first mortgage payment is traditionally due on the first day of the second month after your mortgage loan closing. To calculate this date, simply add 30 days to your closing date and, from there, jump ahead to the first day of the next calendar month.
For example, if you closed on your house on Aug. 12, you can expect your first mortgage payment to be due on Oct. 1.
Just be sure to check your closing documents, as this tradition isn’t set in stone — it’s just a guideline. Your first payment due date will be listed in your promissory note, along with other details like the time, place and amounts of your payments.
Next steps: Start the home loan process
- Learn about mortgage types and requirements.
- Get a mortgage preapproval letter.
- Explore mortgage lenders.
- Get quotes from three to five lenders.