How to use the Mortgage Calculator
- Enter the home price and your down payment, either as an amount or a percentage. The other box updates automatically.
- Add the interest rate and loan term from your lender’s quote.
- Fill in property tax, home insurance, HOA fees and your PMI rate if you are putting down less than 20%.
- Review the monthly breakdown, total interest and payoff date, then open the schedule or download it as CSV.
Features
- Full PITI payment: principal, interest, tax and insurance
- Linked down payment fields in amount or percent
- PMI added below 20% down and dropped at 78% of the home’s value
- HOA fees included in the monthly total
- Yearly balance chart and monthly or yearly schedule
- CSV export of the full amortization table
What goes into a monthly mortgage payment
Lenders often describe the payment as PITI: principal, interest, taxes and insurance. Principal and interest repay the loan itself. Property tax and homeowners insurance are usually collected each month into an escrow account and paid on your behalf. On top of that you may owe private mortgage insurance (PMI) and homeowners association (HOA) dues. This calculator adds them all, so the number you see is close to what leaves your bank account each month.
The formula for principal and interest
The principal-and-interest part uses the standard amortization formula: M = L × r × (1 + r)n ÷ ((1 + r)n − 1), where L is the loan amount (price minus down payment), r is the yearly rate ÷ 12 ÷ 100 and n is the number of monthly payments. Property tax is the yearly rate × home price ÷ 12, insurance is the yearly premium ÷ 12, and PMI is the yearly PMI rate × loan amount ÷ 12.
Example
A 400,000 home with 20% down leaves a loan of 320,000. At 6.5% for 30 years, principal and interest come to 2,022.62 a month. Add property tax at 1.1% (366.67 a month) and insurance of 1,500 a year (125 a month) and the payment is about 2,514.28. Over the full term you would pay 408,142.36 in interest, more than the amount you borrowed.
15-year versus 30-year terms
| Loan of 320,000 at 6.5% | Monthly P&I | Total interest |
|---|---|---|
| 30 years | 2,022.62 | 408,142 |
| 15 years | 2,787.54 | 181,758 |
The shorter term costs about 765 more a month but saves over 226,000 in interest. In practice 15-year loans often come with a lower rate as well, which widens the gap.
How PMI works
On a conventional loan, lenders usually require PMI when the down payment is under 20% of the price. Its cost depends on your credit score and down payment, so use the rate from your Loan Estimate. In the United States, the Homeowners Protection Act lets you ask the lender to cancel PMI once the balance reaches 80% of the home’s original value, and PMI must end automatically when the balance is scheduled to reach 78%. The calculator follows the automatic 78% rule, so your PMI may stop sooner if you request it or prepay. FHA loans use a different mortgage insurance premium with its own rules.
Tips for using the results
- Check affordability. A common guideline is to keep housing costs under about 28% of gross monthly income and all debt payments under 36%.
- Use local tax rates. Property tax varies widely between areas; your county or city assessor publishes the rate.
- Budget for the rest. Closing costs, maintenance and utilities are not part of the payment but belong in your plan.
- Test a higher rate. If you have not locked a rate yet, try half a point higher to see how sensitive the payment is.
To compare other loans, try the EMI Calculator, and use the Savings Goal Calculator to plan your down payment.
All results are estimates for information only and are not financial advice; your lender’s figures, escrow amounts and PMI terms may differ.
Frequently asked questions
What does PITI mean?
PITI stands for principal, interest, taxes and insurance, the four main parts of a monthly mortgage payment. This calculator also adds PMI and HOA dues when they apply.
When do I have to pay PMI?
Conventional lenders usually charge PMI when you put down less than 20% of the price. It ends automatically once the balance is scheduled to reach 78% of the original home value, and you can ask for removal at 80%.
Do taxes and insurance stop at the payoff date?
No. The payoff date is when the loan balance reaches zero. Property tax, insurance and HOA dues continue for as long as you own the home.
Why is my lender’s payment slightly different?
Lenders round each payment, set escrow from actual tax bills and insurance quotes, and may include other fees. Treat your Loan Estimate as the final figure.
How much house can I afford?
A widely used rule of thumb is to keep the total housing payment below about 28% of gross monthly income. Try different home prices here until the monthly payment fits that limit.