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Mortgage calculator

Your monthly payment with tax, insurance and PMI included, plus what extra payments would save.

Home and loan
Down payment
Loan term
Taxes and costs

Of the home price. The US average is about 1.1%.

Only charged when you put down less than 20%.

Pay it off faster

Goes straight to principal.

How it’s worked out

The same formula every lender uses, with your numbers in it.

Loan amount
P = − =
Monthly rate
r = ÷ 12 =
Number of payments
n = × 12 =
Principal and interest
M = P × r ÷ (1 − (1 + r)−n)= × ÷ (1 − )=
Tax, insurance, PMI, HOA
Monthly payment
=

Where your payments go

Principal and interest paid in each year of the loan. Early on, most of each payment is interest.

  • Principal
  • Interest

Amortization schedule

Reading your mortgage payment

Early in a mortgage most of each payment is interest, because interest is charged on a large balance. As the balance falls, more of the same payment goes to principal. The chart shows that shift year by year.

Property tax and insurance don’t change the loan, but lenders usually collect them monthly through an escrow account, so they belong in the payment you budget for. A common guideline is to keep housing costs under 28% of gross monthly income.

Questions people ask

What is included in a monthly mortgage payment?

Most lenders collect four things, often shortened to PITI: principal, interest, property tax and homeowners insurance. If you put down less than 20%, private mortgage insurance (PMI) is usually added, and HOA dues come out of your monthly budget too. This calculator shows all of them.

When does PMI stop?

On a US conventional loan, lenders must cancel PMI automatically once your balance is scheduled to reach 78% of the home’s original value. You can ask for it to be removed earlier, at 80%. The calculator drops PMI at 78%.

How much do extra payments save?

Every extra amount goes straight to principal, so the interest charged in every later month is smaller. Add an amount under “Extra each month” to see the interest saved and how much sooner the loan is paid off.

Is a 15-year or 30-year mortgage better?

A 15-year loan has a higher monthly payment but usually a lower rate and far less total interest. A 30-year loan keeps the payment lower. Switch the term above and compare the total interest.