Quick Answer
A US mortgage payment usually includes principal and interest (P&I) plus property tax and homeowners insurance (together “PITI”), and PMI if you put down less than 20%. On a $400,000 home with 20% down at 6.5% for 30 years, P&I is about $2,023 a month; adding 1.1% property tax ($367) and $1,500 a year of insurance ($125) brings the total to about $2,514. Enter your numbers to see your own breakdown.
What is a Mortgage Calculator?
A Mortgage Calculator estimates the monthly payment on a home loan in the United States. The headline figure lenders advertise — principal and interest — is only part of the story. Most homeowners also pay property tax and homeowners insurance every month through escrow, many pay private mortgage insurance (PMI) if they put down less than 20%, and some pay HOA dues to a homeowners association. Leaving these out can make a home look several hundred dollars a month cheaper than it really is.
This free calculator adds all of them together, shows the result as a clear breakdown and donut chart, works out when PMI will drop off, and gives you the loan amount, total interest, payoff date and a year-by-year amortization schedule. It is designed for planning — for exact numbers, your lender's Loan Estimate is the official document.
Key Features
- Full monthly payment — principal, interest, property tax, insurance, PMI and HOA.
- Smart PMI — applied only when the down payment is under 20% and removed automatically when the balance reaches 78% of the original price.
- Terms from 10 to 40 years, including the popular 15 and 30-year options.
- Payoff date based on your first payment month.
- Total interest and total of all principal-and-interest payments.
- Breakdown chart and yearly schedule.
- Private — runs in your browser, no sign-up.
How to Use It — Step by Step
- Enter the home price and your down payment as a percentage.
- Enter the interest rate you have been quoted and pick the loan term.
- Add property tax as a yearly percentage of the price, home insurance per year, the PMI rate and any HOA dues.
- Set the first payment month to get an accurate payoff date.
- Review the monthly total, chart, key facts and schedule. Change one input at a time to compare scenarios.
How the Payment is Calculated
Principal and interest: P&I = L × r × (1 + r)n ÷ ((1 + r)n − 1), where L is the loan amount, r the monthly rate (annual rate ÷ 12 ÷ 100) and n the number of payments.
Property tax = price × tax rate ÷ 12. Insurance = yearly premium ÷ 12. PMI = loan × PMI rate ÷ 12 (only while required). HOA is added as entered.
Worked example (20% down): a $400,000 home with $80,000 down leaves a $320,000 loan. At 6.5% for 30 years, P&I is $2,022.62. Property tax at 1.1% adds $366.67 and insurance of $1,500 a year adds $125. No PMI is needed. Monthly total: about $2,514. Over 30 years you would pay about $408,142 in interest — more than the loan itself.
Worked example (10% down): the same home with $40,000 down needs a $360,000 loan. P&I rises to $2,275.44 and PMI at 0.5% adds $150 a month, for a total of about $2,917. With regular payments, the balance reaches 78% of the original price after 109 payments (about 9 years), when PMI ends.
Understanding PMI
Private mortgage insurance protects the lender, not you, if you stop paying. Conventional lenders usually require it when your down payment is below 20%. Its cost depends mainly on your credit score and down payment and is commonly quoted as an annual percentage of the loan. Key rules under the federal Homeowners Protection Act for most conventional loans:
- You can request cancellation when your balance reaches 80% of the original home value, if you have a good payment history.
- PMI must end automatically when the balance is scheduled to reach 78% of the original value, if you are current on payments.
- Extra principal payments can help you reach these points sooner.
FHA loans use a different system called MIP, which can last for the life of the loan in many cases, and VA loans have a one-time funding fee instead. Ask your lender how these apply to you.
15-Year vs 30-Year Mortgage
A shorter term means higher monthly payments but far less interest, and 15-year loans usually come with lower rates. Try both terms in the calculator: on the $320,000 loan above at the same 6.5% rate, a 15-year term raises P&I to about $2,788 a month but cuts total interest to roughly $182,000 — less than half of the 30-year figure. In real life the 15-year rate would usually be lower still, making the saving even larger.
How Much House Can You Afford?
- The 28/36 rule: keep total housing costs (the full payment this calculator shows) within about 28% of gross monthly income, and all debt payments within about 36%.
- Keep reserves: after the down payment and closing costs, keep an emergency fund of several months of expenses.
- Budget for upkeep: many owners set aside around 1% of the home's value each year for maintenance and repairs.
- Remember rising costs: property taxes and insurance premiums often increase over time, even with a fixed-rate loan.
Smart Ways to Lower Your Payment
- Improve your credit score before applying — it affects both the rate and PMI.
- Increase the down payment to reduce the loan and avoid PMI.
- Shop several lenders — small rate differences add up to thousands of dollars.
- Compare insurance quotes every year or two.
- Appeal your property assessment if it seems too high.
- Consider buying discount points only if you will keep the loan long enough to recover the cost.
Reading the Yearly Schedule
The table under the chart shows, for each year, how much principal and interest you paid and the balance remaining. In the early years of a 30-year loan most of each payment is interest; the balance falls slowly at first and faster later on. This is useful for estimating your equity at a future date, deciding when refinancing might make sense, and seeing how much mortgage interest you pay each calendar year.
Common Mistakes to Avoid
- Budgeting only for principal and interest — taxes, insurance and PMI can add 25% or more.
- Using a national average tax rate — look up the actual rate for the property's county.
- Forgetting closing costs — typically a few percent of the loan amount, paid at closing.
- Stretching to the maximum approval — lenders may approve more than is comfortable.
- Ignoring HOA dues and special assessments in condos and planned communities.
Tips and Troubleshooting
- PMI shows $0 — the down payment is 20% or more, so PMI is not applied.
- Payoff date looks wrong — set the first payment month; it defaults to the current month.
- Numbers differ from the Loan Estimate — lenders use exact tax bills, insurance quotes and escrow cushions.
- Error message — the down payment must be below 100% and the rate between 0% and 25%.
Quick Glossary
- Escrow: an account your lender uses to collect and pay taxes and insurance.
- LTV (loan-to-value): loan balance ÷ home value; PMI depends on it.
- Points: upfront fees paid to lower the interest rate.
- Loan Estimate: the standard three-page form lenders must give you after you apply.
- HOA: homeowners association, which charges dues for shared amenities and upkeep.
- Amortization: paying off the loan through scheduled payments.
Why Use This Mortgage Calculator?
It shows the payment you will actually make, not just principal and interest; it handles PMI the way US rules work; and it gives you the payoff date, total interest and schedule in one view. It is free, fast and private. Use it to plan and compare, then confirm the details with your lender.
Mortgage Calculator — Key Facts
| P&I formula | Loan × r × (1 + r)^n ÷ ((1 + r)^n − 1), r = rate ÷ 12 |
|---|---|
| PITI | Principal + Interest + property Taxes + Insurance |
| PMI | When down payment < 20%; removed here at 78% of original price |
| Extras | HOA dues, payoff date, total interest, yearly schedule |
| Terms | 10, 15, 20, 25, 30 or 40 years |
| Not included | Closing costs, points and lender fees |
Frequently Asked Questions
What does PITI mean?
PITI stands for principal, interest, taxes and insurance — the four main parts of a typical monthly mortgage payment. Many lenders collect taxes and insurance through an escrow account and pay the bills for you.
How is the principal and interest payment calculated?
It uses the standard amortization formula: loan × r × (1 + r)^n ÷ ((1 + r)^n − 1), where r is the annual rate divided by 12 and n is the number of monthly payments. For a $320,000 loan at 6.5% over 30 years it is about $2,022.62.
What is PMI and when do I pay it?
Private mortgage insurance protects the lender on conventional loans when your down payment is below 20%. It typically costs a fraction of a percent to over 1% of the loan per year, depending on your credit score and down payment.
When does PMI go away?
Under the US Homeowners Protection Act you can ask to cancel PMI once your balance reaches 80% of the home's original value, and it must end automatically at 78% if you are current on payments. This calculator removes PMI at 78% of the original price.
Does this calculator handle FHA or VA loans?
Not exactly. FHA loans charge mortgage insurance premiums (MIP) with their own rules, and VA loans have a funding fee instead of PMI. You can approximate MIP by entering its annual rate in the PMI box, but check the details with your lender.
How much property tax should I enter?
Property tax varies widely by state and county — from well under 1% to over 2% of the home's value per year. Look up the rate for the specific property or use the tax figure on the listing or your Loan Estimate.
How much house can I afford?
A common guideline is the 28/36 rule: keep housing costs within about 28% of gross monthly income and all debt payments within about 36%. Lenders may allow more, but a lower ratio leaves room for savings and surprises.
Is a 15-year or 30-year mortgage better?
A 15-year loan has higher monthly payments but usually a lower rate and far less total interest. A 30-year loan is more affordable each month. Compare both in the calculator to see the trade-off.
Are closing costs included?
No. Closing costs, discount points, appraisal and other lender fees are paid separately, typically a few percent of the loan amount. Your Loan Estimate lists them.
Why is my lender's payment different?
Lenders use exact tax and insurance quotes, may round differently, and might include escrow cushions. Use this calculator for planning and the Loan Estimate for exact figures.
Can I use this calculator outside the US?
The principal and interest part works anywhere, but PMI, property tax and HOA are US concepts. For loans in India or other countries, our Loan Calculator or EMI Calculator is a better fit.
Is the Mortgage Calculator free?
Yes. It is free, needs no sign-up and runs in your browser without storing your data.
Know Your True House Payment!
Principal, interest, taxes, insurance, PMI and HOA — free and private.
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