What is a good mortgage interest rate?

Rates change daily. As of 2026, a "good" 30-year fixed conforming rate is typically within 0.25% of the national average for your credit tier (generally 720+).

Should I pick 15-year or 30-year?

A 15-year term has a higher payment but roughly half the total interest. Pick 30-year for cash-flow flexibility, 15-year to build equity faster.

What down payment do I need to avoid PMI?

On a conventional loan, 20% down removes private mortgage insurance. FHA and USDA loans have different rules.

Financial Popular

Mortgage Calculator

Estimate your mortgage payments including principal, interest, taxes and insurance. Free online Mortgage Calculator — instant and accurate results, no signup.

Principal, interest, taxes and insurance (PITI).

Home price ($)

Down payment ($)

Interest rate (%)

Term (years)

Annual property tax ($)

Annual insurance ($)

P&I Payment

$2,128.97

Full PITI

$2,528.97

Total Interest

$446,428.47

Total Paid (P&I)

$766,428.47

Derivation

├── 01Givenhome = $400,000, down payment = $80,000, rate = 7.0%, term = 30 yrs
├── 02Loan principal$400,000 − $80,000 = $320,000
├── 03FormulaM = P · r / (1 − (1 + r)^(−n))
├── 04Monthly rate r7.0% / 12 = 0.005833
├── 05Months n30 × 12 = 360
├── 06P&I payment$2,128.97
├── 07Monthly tax$3,600 / 12 = $300
├── 08Monthly insurance$1,200 / 12 = $100
├── 09Full PITI (P+I+T+I)$2,528.97
└── 10Total interest over loan$446,428.47

Did you know?

Adding just $100/mo to a 30-year $300k loan at 7% saves ~$67,000 in interest and pays it off 4 years early.

§01What is

Understanding the Mortgage Calculator

A mortgage calculator helps you estimate your monthly home-loan payment and how much interest you’ll pay over the life of the loan. It combines your loan amount, interest rate, term and optional escrow items (taxes, insurance) into one clear number so you can budget and compare offers.

Quick calculators for the math that shouldn’t need a notepad — instant, accurate, private to your browser. The Mortgage Calculator sits in that toolkit — it estimate your mortgage payments including principal, interest, taxes and insurance. Enter your numbers above and the result updates instantly; every step of the math is shown in the Derivation panel so you can see exactly how the answer was reached.

§02The Formula

How it’s calculated

M = P · [r(1+r)ⁿ] / [(1+r)ⁿ − 1]

Where

M: Monthly principal & interest payment
P: Loan principal (amount financed)
r: Monthly interest rate (annual rate ÷ 12)
n: Total number of monthly payments (years × 12)

§03Practical Example

Step-by-step walkthrough

Scenario

You buy a $400,000 home with 20% down, a 30-year fixed mortgage at 6.5% APR.

01Loan amount P = $400,000 − $80,000 = $320,000
02Monthly rate r = 6.5% ÷ 12 = 0.005417
03Total payments n = 30 × 12 = 360
04Plug into formula: M = 320,000 × [0.005417 × (1.005417)³⁶⁰] / [(1.005417)³⁶⁰ − 1]
05Your monthly P&I payment ≈ $2,023

§04FAQ

Frequently asked questions

The standard calculation covers principal and interest only. Add property tax, homeowners insurance and PMI separately for a full PITI estimate.

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