CALCULATOR TOOLS
Mortgage Calculator
Monthly mortgage payment with property tax, home insurance, PMI and HOA, plus a full amortization schedule.
Calculated in your browser – nothing you enter is sent or stored.
This mortgage calculator shows what a home will really cost each month – not just principal and interest, but the property tax, homeowners insurance, private mortgage insurance (PMI) and HOA dues that most lenders roll into one payment. Change any number and the payment, total interest, payoff date and the full amortization schedule update instantly.
How to Use the Mortgage Calculator
- Home price and down payment. Enter the purchase price and your down payment as a percentage. The dollar amount appears under the field.
- Interest rate and term. Use the rate from your loan estimate, or today's average for a quick estimate. Most buyers choose a 30-year or 15-year fixed loan.
- Taxes, insurance and HOA. Property tax is entered as a yearly percentage of the price (check your county's rate), insurance as a yearly premium and HOA dues per month.
- PMI. If you put down less than 20%, a PMI rate – typically 0.3% to 1.5% of the loan per year – is added until you reach 78% loan-to-value.
- Extra payments. Add an amount you could pay toward principal each month to see how many years and how much interest you save.
The Mortgage Payment Formula
The principal-and-interest part of a fixed-rate mortgage is calculated with the standard amortization formula:
M = P × r(1 + r)n ÷ [(1 + r)n − 1]
- M – monthly principal and interest payment
- P – loan amount (home price minus down payment)
- r – monthly interest rate (annual rate ÷ 12, as a decimal)
- n – number of monthly payments (years × 12)
Example: a $400,000 home with 20% down leaves a $320,000 loan. At 6.5% for 30 years, r = 0.065 ÷ 12 = 0.0054167 and n = 360, so M = $2,022.62. Add 1.1% property tax ($366.67 a month) and $1,800 a year of insurance ($150 a month) and the full payment is about $2,539. Over 30 years you would pay roughly $408,000 in interest – more than the loan itself.
What Is Included in a Mortgage Payment (PITI)
Lenders describe the monthly housing payment as PITI: principal, interest, taxes and insurance. Taxes and insurance are usually collected through an escrow account and paid by the loan servicer when the bills are due.
- Principal reduces what you owe. Early in the loan it is a small share of each payment.
- Interest is the lender's charge. Because it is calculated on the remaining balance, it is largest in the first years.
- Property tax is set by your county or city and ranges from under 0.5% of value in Hawaii and Alabama to over 2% in New Jersey and Illinois.
- Homeowners insurance is required by every lender and varies widely with location, roof age and coverage.
- PMI protects the lender when you borrow more than 80% of the home's value. FHA loans charge a mortgage insurance premium (MIP) instead.
- HOA dues are not collected by the lender, but they count toward your debt-to-income ratio, so they are included here.
15-Year vs. 30-Year Mortgage
A shorter term means a higher monthly payment but far less interest. For a $320,000 loan (rates are examples – 15-year loans are usually priced lower):
| Term | Rate | Monthly P&I | Total interest |
|---|---|---|---|
| 30 years | 6.5% | $2,022.62 | $408,142 |
| 20 years | 6.25% | $2,338.97 | $241,353 |
| 15 years | 5.75% | $2,657.31 | $158,316 |
If the 15-year payment is too tight, a 30-year loan with extra principal payments gives you flexibility: you can pay it down like a shorter loan, but fall back to the lower required payment when money is tight. Check that your loan has no prepayment penalty first.
How Extra Payments Shorten Your Loan
Every extra dollar goes straight to principal, so the next month's interest is charged on a smaller balance. On the $320,000 loan at 6.5%, paying an extra $200 a month cuts the term by about 6½ years and saves around $105,000 in interest. Enter an extra payment above to see the exact figures for your loan, then switch the schedule to Monthly to see each payment.
When Does PMI Go Away?
Under the federal Homeowners Protection Act, the lender must cancel PMI automatically when your balance is scheduled to reach 78% of the home's original value, as long as you are current on payments. You can ask to cancel it earlier, at 80%. The calculator shows the month PMI ends and how much you pay in total until then. Extra payments make it end sooner.
How Much House Can You Afford?
A common guideline is that your total housing payment should stay under 28% of your gross monthly income, and all debts together – housing, car, student loans and credit cards – under 36% to 43%. With a $2,539 payment you would want a gross income of roughly $9,070 a month, or about $109,000 a year. Use the paycheck calculator to see what that income means after taxes.
Mortgage figures are estimates. Your actual rate, PMI and escrow amounts depend on your credit score, loan type and location, and are listed on the official Loan Estimate every lender must give you within three business days of your application.
Sources
- CFPB – What is PMI and when can I cancel it?
- CFPB – Understanding your Loan Estimate
- Freddie Mac – Primary Mortgage Market Survey (average rates)
Last reviewed: October 2026 by the ShrinkBee team. Results are estimates for planning and education, not financial, tax, legal or medical advice.
Car Payment Calculator Compound Interest Calculator Paycheck Calculator Inflation Calculator