Free · No signup

Mortgage Calculator

Calculate your monthly payment instantly. Includes PMI, property tax, insurance, and full amortization breakdown.

✓ Free · No signup 2025 US Rates PMI included Amortization schedule
Loan Details
$
%
Amount
$80,000
≥ 20% down avoids PMI (~0.5–1.5%/yr extra)
%/yr
Monthly Costs (Optional)
%/yr
US avg ~1.1%/yr
$
Per year
$
Monthly P&I Payment
$0
Principal & Interest
$0
Total Monthly (PITI)
$0
Total Interest Paid
$0
Total Loan Cost
—
Payoff Date
Principal vs Interest split
Principal
Interest
Principal & Interest—
PMI—
Property Tax—
Home Insurance—
HOA—
Total Monthly (PITI)—
2025 US Mortgage Rates
30-year fixed~6.8%
20-year fixed~6.5%
15-year fixed~6.1%
10-year fixed~5.9%
5/1 ARM~6.2%
Rates as of Jun 2025. Vary by lender, credit score, and location. Always compare at least 3 lenders.

Refinancing: When the Math Actually Works in Your Favor

Refinancing gets pitched constantly, but it only pays off under specific conditions — running the numbers wrong is one of the most expensive mistakes homeowners make.

The break-even calculation. Closing costs on a refinance typically run 2%–5% of the loan amount ($8,000–$20,000 on a $400,000 balance). Divide those costs by your monthly savings to find your break-even point in months. If refinancing saves you $180/month and costs $9,000 to close, break-even is 50 months (about 4.2 years). If you plan to sell or move before that point, the refinance loses money even though the rate is lower.

Resetting the amortization clock. A refinance restarts your loan term. If you're 8 years into a 30-year mortgage and refinance into a new 30-year loan, you're now paying interest-heavy payments for another three decades — even at a lower rate, total interest paid over the life of the loan can end up higher. A rate-and-term refinance into a shorter term (e.g., remaining balance into a 20-year loan) usually preserves more of the interest savings than starting a fresh 30-year clock.

Cash-out refinancing changes the equation entirely. Pulling equity out to pay off other debt or fund a renovation increases your loan balance, which can offset or eliminate the benefit of a lower rate. Lenders also usually charge a slightly higher rate for cash-out versus rate-and-term refinances (often 0.125%–0.375% higher).

General rule of thumb: a refinance is usually worth evaluating seriously when the new rate is at least 0.75 percentage points below your current rate, you plan to stay in the home past the break-even point, and you're not extending your payoff timeline by more than a few years.

Mortgage Calculator — Frequently Asked Questions

Your monthly P&I uses M = P × [r(1+r)^n] / [(1+r)^n − 1], where P = loan amount, r = monthly rate (annual ÷ 12), n = total payments. A $400,000 loan at 6.8% for 30 years = ~$2,610/month P&I. Add property tax, home insurance, PMI, and HOA to get your full PITI payment.
Private Mortgage Insurance is required on conventional loans when your down payment is less than 20%. PMI typically costs 0.5–1.5% of the loan per year. Once your balance reaches 80% LTV you can request cancellation under the Homeowners Protection Act. FHA loans use MIP instead, which works differently (often stays for the life of the loan).
30-year has lower monthly payments but 2–3× more total interest. 15-year has ~40–50% higher payments but ~55% less interest and builds equity faster. 15-year rates are also typically 0.5–0.75% lower. Choose 30-year for cash flow flexibility; choose 15-year if you want to minimize total interest cost and can handle the higher payment.
The 28/36 rule: housing payment (PITI) ≤ 28% of gross monthly income, total debt ≤ 36%. Lenders typically allow DTI up to 43–45%. On $80k/year ($6,667/month gross), the 28% rule gives a max housing payment of ~$1,867/month. Factor in property taxes and insurance — they can add $500–$1,000+/month on a $400k home.
Amortization shows how each payment splits between principal and interest over time. Early payments are mostly interest — on a 30-year mortgage you won't cross the 50% paydown point until roughly year 18–19. Extra principal payments early have an outsized impact because they reduce the balance on which future interest accrues.