🏠 Mortgages & Real Estate

Mortgage Calculator 2026 · Estimate Your Monthly Payment

A mortgage is typically the single largest financial commitment an American household will ever undertake. In the United States, traditional home financing revolves around the 30-year fixed-rate and 15-year fixed-rate mortgage, where your monthly payment remains predictable over the entire borrowing horizon.

Your total monthly housing payment is commonly referred to in banking as PITI: Principal, Interest, Taxes, and Insurance. While this calculator computes your baseline Principal and Interest (P&I) using standard monthly amortization, homebuyers must also budget for local county property taxes, homeowners hazard insurance, and Private Mortgage Insurance (PMI) if putting down less than 20%.

Under standard US underwriting guidelines (such as the 28/36 rule enforced by Fannie Mae and Freddie Mac), lenders prefer that your monthly housing expense (PITI) does not exceed 28% of your gross monthly income. Use our interactive calculator to test different purchase prices, down payments, and interest rates to find a payment that comfortably fits your budget.

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When to Use This Calculator

Everyday financial situations where this tool gives you fast, accurate clarity:

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Home Affordability Budgeting

Determine the maximum home purchase price that keeps your monthly payments within comfortable income limits.

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15-Year vs. 30-Year Comparison

Compare monthly payments and massive lifetime interest savings between 15-year and 30-year fixed loans.

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Evaluate Down Payment Impact

See how increasing your down payment reduces your monthly principal and interest charges.

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Interest Rate Shopping

Measure how negotiating a 0.25% to 0.50% lower rate from competing lenders saves tens of thousands of dollars.

lightbulbFormula & Worked Example

How It Works

Fixed-rate mortgages use the standard amortization formula:\n\n

\nM = P * [ r(1 + r)^n ] / [ (1 + r)^n - 1 ]\n

\n\nWhere:\n* M = Total monthly payment\n* P = Principal loan amount (Purchase price minus down payment)\n* r = Monthly interest rate (Annual rate divided by 12)\n* n = Total number of payments (Loan term in years multiplied by 12)

Step-by-Step Example

For a $400,000 home with a 20% down payment ($80,000) and a 30-year fixed rate of 6.75%:\n\n* Loan balance: $320,000\n* Monthly Principal & Interest: $2,075.54\n* Total interest paid over 30 years: $427,194\n* Total paid for the home: $747,194 (plus your original $80,000 down payment)\n\nNote: Property taxes, homeowner’s insurance, and HOA dues will be added by your lender in an escrow account.

Frequently Asked Questions

What is the 28/36 qualifying rule in mortgage lending?expand_more

The 28/36 rule is a standard debt-to-income (DTI) benchmark used by US lenders: your front-end housing costs (PITI) should not exceed 28% of your gross monthly income, and your back-end total debt obligations (housing plus student loans, car loans, and credit cards) should not exceed 36%.

What does PITI stand for and why is it important?expand_more

PITI stands for Principal, Interest, Taxes, and Insurance. While this calculator computes your baseline Principal and Interest (P&I), your actual monthly check to the mortgage servicer will usually include property taxes and hazard insurance held in escrow.

What is Private Mortgage Insurance (PMI) and when does it apply?expand_more

PMI is required on conventional loans when your down payment is less than 20% of the purchase price. It typically costs 0.5% to 1.5% of the loan amount annually and protects the lender if you default.

Should I choose a 15-year or a 30-year fixed mortgage?expand_more

A 30-year loan offers lower monthly payments, providing greater monthly cash flow flexibility. A 15-year loan comes with lower interest rates and cuts total interest paid by more than 60%, but requires a significantly higher monthly payment.

How much are closing costs on a home purchase in the US?expand_more

Closing costs typically range from 2% to 5% of the total loan amount. On a $400,000 home with an $80,000 down payment ($320,000 loan), closing fees usually average between $6,400 and $16,000.

Can I pay off my mortgage early without penalties?expand_more

Yes. Under federal law, virtually all modern residential mortgages in the United States have no prepayment penalties, meaning you can make extra principal payments at any time to pay off your mortgage faster.

Related tools to help with your financial decisions.

Mortgages & Real Estate

Mortgage Calculator 2026 · Estimate Your Monthly Payment

Behind this is dedication and a desire to help

Found an error or have a suggestion?

When to Use This Calculator

Home Affordability Budgeting

15-Year vs. 30-Year Comparison

Evaluate Down Payment Impact

Interest Rate Shopping

How It Works

Step-by-Step Example

Frequently Asked Questions

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