Mortgage Calculator
See your true monthly mortgage payment — principal and interest plus property tax, homeowner's insurance, PMI, and HOA — with a year-by-year amortization schedule.
Your loan details
Taxes, insurance & extras
Amortization schedule (yearly)
| Year | Interest paid | Principal paid | Balance |
|---|---|---|---|
| Enter your details and click Calculate. | |||
How mortgage payments work
Your monthly mortgage payment has up to six parts, often remembered as PITI plus extras: Principal (paying down the loan), Interest (the lender's charge), Taxes (property tax, usually escrowed), and Insurance (homeowner's insurance, also escrowed). If your down payment is below 20%, most conventional loans add PMI (private mortgage insurance), and many condos and planned communities add HOA dues. Online estimates that show only principal and interest can understate your real payment by 25% or more — this calculator includes everything.
The mortgage payment formula
The principal-and-interest portion is computed with the standard amortization formula:
where P is the loan amount, r is the monthly interest rate (annual rate ÷ 12), and n is the total number of monthly payments. Early in the loan, most of each payment goes to interest; over time the balance shifts toward principal. That is why the amortization schedule above shows heavy interest in the early years.
About PMI
Private mortgage insurance protects the lender — not you — and typically costs 0.3% to 1.5% of the loan amount per year. This calculator applies your PMI rate while the loan balance is above 80% of the home's price and drops it automatically once you cross that threshold, matching how most conventional loans work. Putting 20% down avoids PMI entirely, which is one reason a larger down payment can beat a slightly lower purchase price.
Mortgage FAQs
How is a monthly mortgage payment calculated?
The principal-and-interest portion uses the standard amortization formula M = P × r(1+r)^n / ((1+r)^n − 1). Property tax, insurance, PMI and HOA are added on top for the total monthly payment.
When can I stop paying PMI?
Lenders typically require PMI below 20% down. You can usually request cancellation at 80% loan-to-value, and it must drop automatically at 78% for most conventional loans. This calculator removes PMI once your balance hits 80% of the home price.
How much house can I afford?
A common guideline is the 28/36 rule: no more than 28% of gross monthly income on housing, and no more than 36% on all debts. Try our home affordability calculator for a personalized estimate.
Does a 15-year or 30-year mortgage cost less overall?
A 15-year loan almost always costs far less in total interest and usually carries a lower rate, but the monthly payment is much higher. Use the term selector above to compare both for your numbers.