Results are estimates for reference only and may differ from the actual amount.
How to use
- Enter the home price and your down payment, either as a dollar amount or a percentage.
- Enter the interest rate and choose the loan term, such as a 30-year or 15-year fixed mortgage.
- Add property tax, homeowners insurance, PMI and HOA fees to see the full monthly cost.
- Review the payment breakdown and the amortization schedule, and download it as a CSV if you want to keep it.
What goes into a mortgage payment
The loan payment itself, principal and interest, is only part of what homeowners pay each month. Property tax and homeowners insurance are usually paid through escrow along with the loan. If you put down less than 20%, most conventional lenders add private mortgage insurance. Condos and planned communities often charge homeowners association fees. This calculator adds them all up so you can compare the real monthly cost of different homes and loans.
How principal and interest are calculated
For a fixed-rate mortgage the monthly principal and interest payment is:
M = L × r × (1 + r)^n ÷ ((1 + r)^n − 1)
where L is the loan amount, r is the monthly rate (annual rate ÷ 12) and n is the number of monthly payments. A $200,000 loan at 6.5% for 30 years has a payment of $1,264.14. At 6% over 15 years, the same loan costs $1,687.71 a month. Payments are rounded to the cent, and interest each month is one twelfth of the annual rate on the remaining balance.
Worked example
A $400,000 home with 10% down means a $360,000 loan. At 6.5% for 30 years, principal and interest come to about $2,275.44. Property tax at 1.1% adds about $366.67 a month, insurance of $1,500 a year adds $125, and PMI at 0.5% adds $150. The total is about $2,917 a month until PMI ends, after which it drops by $150.
When PMI goes away
Under the Homeowners Protection Act, PMI on a conventional loan ends automatically when the balance is scheduled to reach 78% of the home’s original value. You can usually ask to cancel it earlier at 80%. The calculator shows how many months you will pay PMI based on the regular schedule. Extra payments toward principal shorten that period.
Keep in mind
Rates, taxes and insurance premiums change, and lenders may require escrow cushions or charge fees not shown here. FHA and VA loans use different mortgage insurance rules. Use these results to compare scenarios, and rely on the Loan Estimate from your lender for exact numbers.
Frequently asked questions
- What is PITI?
- PITI stands for principal, interest, taxes and insurance, the four parts of a typical monthly mortgage payment. Lenders often collect property tax and insurance through an escrow account as part of the payment. PMI and HOA fees are added on top when they apply.
- When do I have to pay PMI?
- Private mortgage insurance is usually required on a conventional loan when the down payment is less than 20% of the home price. The calculator adds PMI only in that case and stops it once the balance reaches 78% of the original home price, when lenders must cancel it automatically.
- How much is PMI?
- PMI commonly costs between 0.3% and 1.5% of the loan amount per year, depending on your credit score and down payment. Enter the rate from your lender's quote for the most accurate result.
- Is a 15-year or a 30-year mortgage better?
- A 15-year loan has higher monthly payments but a lower rate and far less total interest. A 30-year loan keeps payments lower and more flexible. For a $300,000 loan at 7%, the 30-year payment is about $1,996 while total interest over the full term is more than $418,000.
- Where do I find my property tax rate?
- Property tax rates are set locally. Your county assessor's website lists the rate, and a home's listing often shows last year's tax bill. Divide the annual tax by the home's value to get the percentage.
- Does this include closing costs?
- No. Closing costs, typically 2% to 5% of the loan amount, are paid upfront and are not part of the monthly payment.