Mortgage Calculator
Estimate your monthly mortgage payment including property tax, homeowners insurance, PMI and HOA dues, plus total interest over the loan.
Home and loan
| Principal & interest | $2,023 |
| Property tax | $367 |
| Homeowners insurance | $150 |
| PMI | None (20%+ down) |
| HOA dues | $0 |
| Total paid over 30 years (P&I) | $728,142 |
Balance over time
| Year | Interest that year | Principal that year | Balance left |
|---|---|---|---|
| 1 | $20,695 | $3,577 | $316,423 |
| 5 | $19,636 | $4,636 | $299,555 |
| 10 | $17,861 | $6,410 | $271,284 |
| 15 | $15,407 | $8,864 | $232,189 |
| 20 | $12,014 | $12,257 | $178,129 |
| 25 | $7,322 | $16,949 | $103,373 |
| 30 | $833 | $23,438 | $0 |
Fixed-rate estimate. Property tax and insurance vary by county and insurer; lenders may escrow them and add closing costs. PMI ends automatically when the balance reaches 78% of the original price.
Quick answer
Your monthly mortgage payment is principal and interest on the loan plus property tax, homeowners insurance, private mortgage insurance (PMI) if you put down less than 20%, and any HOA dues. A $320,000 loan at 6.5% over 30 years costs about $2,023 a month in principal and interest alone.
How the monthly payment is calculated
Principal and interest use the standard amortization formula: M = P × r ÷ (1 − (1 + r)^−n), where P is the loan amount, r is the annual rate divided by 12 and n is the number of monthly payments (360 for a 30-year loan). The payment stays the same every month, but early payments are mostly interest and later ones mostly principal.
Property tax is the annual rate you enter applied to the home price and divided by 12. Homeowners insurance is your annual premium divided by 12. Lenders usually collect both through an escrow account, which is why they appear in the same monthly payment (often called PITI: principal, interest, taxes and insurance).
PMI is charged on conventional loans with less than 20% down. It is calculated here as an annual percentage of the loan amount, and it stops automatically once your scheduled balance falls to 78% of the original home price.
What changes your payment the most
- Interest rate: one percentage point on a $320,000 loan changes the 30-year payment by roughly $200 a month.
- Down payment: 20% or more avoids PMI and lowers the loan amount.
- Loan term: a 15-year loan has a much higher payment but less than half the total interest of a 30-year loan.
- Location: property tax ranges from well under 1% to over 2% of the home’s value depending on the state and county.
- Points and closing costs are paid upfront and are not part of this monthly figure.
Reference tables & worked examples
| Home price | Loan | At 5.5% | At 6.5% | At 7.5% |
|---|---|---|---|---|
| $250,000 | $200,000 | $1,136 | $1,264 | $1,398 |
| $350,000 | $280,000 | $1,590 | $1,770 | $1,958 |
| $450,000 | $360,000 | $2,044 | $2,275 | $2,517 |
| $600,000 | $480,000 | $2,725 | $3,034 | $3,356 |
| Term | Monthly P&I | Total interest |
|---|---|---|
| 15 years | $2,788 | $181,758 |
| 20 years | $2,386 | $252,600 |
| 30 years | $2,023 | $408,142 |
Frequently asked questions
How is a mortgage payment calculated?
Principal and interest use the amortization formula M = P × r ÷ (1 − (1 + r)^−n), with r the monthly rate and n the number of payments. Property tax, insurance, PMI and HOA dues are then added on top.
What is PITI?
Principal, interest, taxes and insurance — the four parts of a typical monthly mortgage payment when the lender collects property tax and homeowners insurance through escrow.
When does PMI go away?
Under the Homeowners Protection Act, PMI on a conventional loan ends automatically when the scheduled balance reaches 78% of the original value. You can usually ask to cancel it at 80%.
Is a 15-year or 30-year mortgage better?
A 15-year loan saves a large amount of interest and usually has a lower rate, but the monthly payment is much higher. A 30-year loan keeps payments affordable and you can still prepay when you have spare cash.
How much house can I afford?
A common guideline is to keep total housing costs under about 28% of gross monthly income and all debt payments under about 36%. Lenders look at your full debt-to-income ratio and credit score.
Does this include closing costs?
No. Closing costs (typically 2–5% of the price) and any points you buy are paid at closing and are not part of the monthly payment shown.
Does paying extra principal help?
Yes. Extra payments go straight to principal, reduce the interest charged every month after, and shorten the loan. Check that your loan has no prepayment penalty.
Sources
Estimates for general information only — not tax, legal or financial advice. Check your payslip, employer or a qualified adviser before acting.
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