Mortgage Calculator 2026
Calculate your monthly mortgage payment with property taxes, insurance, and PMI included.
This free mortgage calculator estimates your total monthly payment including principal, interest, property taxes, insurance, and PMI. Whether you are buying your first home or refinancing, understanding the true cost of a mortgage helps you budget accurately and compare loan options.
Current mortgage rates in 2026 range from 6.0% to 6.8% for a 30-year fixed loan. Use the calculator above to see how different rates, down payments, and loan terms affect your monthly payment. For step-by-step payment breakdowns, try our amortization schedule generator. Wondering how much you can borrow? See our home affordability calculator.
How Monthly Mortgage Payments Are Calculated
Your monthly mortgage payment is determined by the amortization formula: M = P × [r(1+r)^n] / [(1+r)^n - 1], where P is the loan principal, r is the monthly interest rate (annual rate divided by 12), and n is the total number of monthly payments. Read our complete guide to mortgage payments for worked examples.
What Is Included in Your Monthly Payment (PITI)
Most lenders require you to pay four components monthly, known as PITI: Principal (reduces your loan balance), Interest (cost of borrowing), Taxes (property taxes held in escrow), and Insurance (homeowner's insurance). If your down payment is less than 20%, you also pay Private Mortgage Insurance (PMI), adding $100-300/month.
How Interest Rates Impact Your Total Cost
On a $300,000 30-year mortgage, the difference between 6% and 7% is about $200/month — or $72,000 over the life of the loan. Even a 0.25% reduction saves $15,000-$20,000 in total interest. Shopping multiple lenders and improving your credit score before applying can save tens of thousands. Use our biweekly payment calculator to see how paying every two weeks saves even more.
30-Year vs 15-Year Mortgage Comparison
| Factor | 30-Year at 6.5% | 15-Year at 5.9% |
|---|---|---|
| Monthly P&I | $1,896 | $2,512 |
| Total Interest | $382,633 | $152,198 |
| Interest Saved | — | $230,435 |
A 15-year mortgage costs $616 more per month but saves over $230,000 in interest. For more analysis, read our biweekly mortgage savings guide or compare renting vs buying.
When Is PMI Required?
Private Mortgage Insurance is required when your down payment is less than 20%. PMI costs 0.3-1.5% of the loan amount annually. On a $300,000 loan, that is $75-375/month. Once you reach 20% equity, you can request PMI removal. FHA loans have their own mortgage insurance (MIP) that works differently and typically lasts the life of the loan.
How Much House Can You Afford?
The standard guideline is the 28/36 rule: your mortgage payment should not exceed 28% of gross monthly income, and total debt should stay below 36%. A household earning $100,000/year can afford roughly $2,333/month in housing costs. Use our home affordability calculator for a personalized estimate, or check your debt-to-income ratio to see where you stand. Read our complete home buying guide.
Frequently Asked Questions
As of early 2026, 30-year fixed mortgage rates range from 6.0% to 6.8%. A rate below 6.5% is considered good. Rates depend on your credit score, down payment, loan type, and market conditions.
A common guideline is the 28/36 rule: your mortgage payment should not exceed 28% of your gross monthly income, and total debt payments should not exceed 36%. For a household earning $100,000/year, this means a maximum mortgage payment of about $2,333/month.
A larger down payment reduces your loan amount (lowering monthly payments and total interest), may qualify you for a better interest rate, and eliminates PMI once you reach 20% down. Putting 20% down on a $350,000 home saves roughly $100-200/month in PMI alone.