Mortgage Calculator

Estimate your full monthly mortgage payment — including principal, interest, property taxes, homeowners insurance, PMI, and HOA fees — not just the base loan payment. Enter your home price and down payment to see exactly what homeownership will cost you each month.

✓ Modify the values and click Calculate to use

Home Price

Down Payment

Loan Term

Interest Rate

Annual Property Tax

Annual Insurance

Monthly HOA

Extra Monthly Payment

Click "Calculate" to see your results.

What's Included in a Mortgage Payment

A mortgage payment has two layers. The base P&I (principal & interest) payment pays down the loan itself. On top of that, most homeowners also pay property taxes, homeowners insurance, and — if the down payment is below 20% — PMI (private mortgage insurance). This calculator shows both the base P&I payment and the full monthly housing cost.

PMI is required by most lenders when your down payment is less than 20% of the home price. It protects the lender against default and typically costs 0.3%–1.5% of the loan amount per year. This calculator automatically estimates PMI (at roughly 0.6%/year) whenever your down payment is under 20%, and removes it once you reach 20% equity.

Mortgage Payment Formula

P&I = L × [r(1+r)ⁿ] / [(1+r)ⁿ − 1]

L= Loan amount (home price − down payment)

r= Monthly interest rate (annual rate ÷ 12)

n= Total number of monthly payments

Mortgage Examples

10% Down Payment

$350,000 home, $35,000 down, 6.5% APR, 30 years.

Loan Amount	$315,000
Monthly P&I	$1,991.01
Total Interest	$401,765.14

PMI applies since down payment is under 20%.

20% Down Payment

Same home, $70,000 down — no PMI required.

Loan Amount	$280,000
Monthly P&I	$1,769.79
Total Interest	$357,124.57

Saves about $44,600 in interest and eliminates PMI entirely.

Why This Calculator Matters

Home Buying

See the true monthly cost of a home — not just P&I — before making an offer.

Down Payment Planning

Compare how different down payment amounts affect your payment, PMI, and total interest.

Refinancing Decisions

Model a new rate or term to see if refinancing would actually save you money.

Extra Payment Strategy

See how much interest and time you'd save by paying extra toward principal each month.

Frequently Asked Questions

Common questions about mortgage payments and homeownership costs.

How do I calculate a mortgage payment?

Using the standard amortization formula: Payment = L × [r(1+r)^n] / [(1+r)^n − 1], where L is the loan amount, r is the monthly interest rate (annual ÷ 12), and n is the total number of monthly payments.

What is included in a mortgage payment?

The base payment covers principal and interest. Total monthly housing cost usually also includes property taxes, homeowners insurance, and potentially PMI and HOA fees, often collected through an escrow account by your lender.

What is the difference between principal and interest?

Principal is the portion of each payment that reduces your outstanding loan balance. Interest is the cost charged for borrowing, calculated on your remaining balance. Early in a mortgage, most of each payment goes toward interest; over time the split shifts toward principal.

Does property tax count in my monthly payment?

Property taxes aren't part of the loan itself, but most lenders collect them monthly through escrow and pay the bill on your behalf. This calculator includes taxes in your Total Monthly Housing Cost.

What is PMI and when do I have to pay it?

PMI (Private Mortgage Insurance) is required by most lenders when your down payment is under 20%. It typically costs 0.3%–1.5% of the loan amount per year. Once you reach 20% equity, you can usually request PMI removal.

How much does a down payment reduce a mortgage?

A larger down payment lowers your loan amount, monthly payment, total interest, and can eliminate PMI entirely. On a $350,000 home, going from 10% to 20% down can save over $40,000 in interest.

Do extra payments reduce total interest?

Yes, significantly. Extra payments reduce your principal balance directly, so less interest accrues going forward — even $100–200/month extra can save tens of thousands over a 30-year loan.