About the Mortgage Calculator
This mortgage calculator estimates the full monthly cost of a home loan — not just principal and interest, but also property tax, homeowners insurance, private mortgage insurance (PMI) and HOA dues. Enter the home price, your down payment, the interest rate and the loan term to see the payment a lender will actually quote you.
It is built for first-time buyers comparing listings, homeowners sanity-checking a lender estimate, and anyone deciding between a 15- and 30-year loan. The amortization chart shows how each payment splits between interest and principal over time, and how quickly you build equity.
PMI is added automatically when your down payment is under 20% of the price and dropped once the balance reaches 78% of the original value, which matches how conventional US loans usually work.
With the default inputs, the total monthly payment is $2,161.46. Change any value above to recalculate instantly.
How to use the mortgage calculator
- 1Enter the home price and how much you plan to put down.
- 2Enter the interest rate from a lender quote or today’s average rate.
- 3Choose a loan term — 30 years lowers the payment, 15 years saves interest.
- 4Add yearly property tax, insurance and any HOA dues for the full picture.
- 5Review the total payment, then use the chart and schedule to see equity build over time.
Formula and method
The principal-and-interest payment uses the standard amortization formula, where P is the loan amount (price minus down payment), r is the monthly interest rate (annual rate ÷ 12) and n is the number of monthly payments. Every payment is the same, but early payments are mostly interest because interest is charged on the large outstanding balance.
The total monthly payment adds one-twelfth of the yearly property tax and insurance, monthly HOA dues, and PMI when the loan-to-value ratio is above 80%. PMI is calculated as the yearly PMI rate × loan amount ÷ 12.
- M
- Monthly principal and interest payment
- P
- Loan principal (home price − down payment)
- r
- Monthly interest rate (annual rate ÷ 12 ÷ 100)
- n
- Number of payments (years × 12)
Worked examples
$350k home, 20% down, 6.5% for 30 years
Borrowing $280,000 at 6.5% for 30 years gives a principal-and-interest payment of $1,769.79. Adding $3,500/yr tax and $1,200/yr insurance brings the total to about $2,161 per month. Over 30 years you would pay roughly $357,125 in interest — more than the loan itself.
$400k home, 20% down, 7% for 15 years
A 15-year $320,000 loan at 7% costs $2,876.25 a month in principal and interest — higher than a 30-year loan, but total interest is about $197,725, far less than a 30-year term would cost.
5% down with PMI
Putting 5% down on a $300,000 home means a $285,000 loan. Because the loan-to-value is 95%, PMI at 0.5% adds $118.75 per month until the balance drops to 78% of the price.
Frequently asked questions
What is included in a mortgage payment?+
Most payments include principal, interest, property tax and homeowners insurance (often called PITI). If you put less than 20% down on a conventional loan you will also pay PMI, and some properties add HOA dues.
How much house can I afford?+
A common guideline is that your total housing payment should stay under about 28% of gross monthly income, and all debt payments under 36%. Use the mortgage affordability calculator to test your own numbers.
Is a 15-year or 30-year mortgage better?+
A 15-year loan usually has a lower rate and costs far less interest, but the monthly payment is much higher. A 30-year loan keeps payments flexible; you can still pay extra to finish early.
When does PMI go away?+
On conventional loans PMI is removed automatically when the balance reaches 78% of the original home value, and you can request removal at 80%. FHA mortgage insurance follows different rules.
Why is most of my early payment interest?+
Interest is charged on the outstanding balance, which is highest at the start. As the balance falls, less of each payment goes to interest and more goes to principal.
Results are estimates for educational purposes and are not financial advice. Rates, fees and terms vary — confirm with your lender or a licensed advisor before making decisions.