A mortgage payment is the single biggest line in most household budgets, and it is almost never just “principal and interest.” The number that actually leaves your bank account each month is PITI plus extras: principal, interest, property tax, homeowners insurance, and — if your down payment is under 20% — private mortgage insurance, often with an HOA fee on top. This calculator builds that full number so the figure you plan around is the figure you will actually pay.
Mortgage Payment Calculator
Estimate your full monthly payment — principal, interest, taxes, insurance, HOA and PMI. Updates as you type.
Estimates only. Actual rate, taxes, insurance and PMI depend on your lender, location and credit. Not a loan offer.
How to use this calculator
Enter the home price and your down payment (toggle between a percentage and a dollar amount — most buyers think in percentages, but it is worth seeing the real dollars). Pick a loan term, type the interest rate your lender quoted, and add annual property tax, annual homeowners insurance, any monthly HOA dues, and a PMI rate if you are putting down less than 20%.
The result updates instantly. The large figure is your total monthly payment. The breakdown beside it shows exactly where every dollar goes, and the three stats below show lifetime interest, the total of all payments, and your payoff month.
What is actually in a monthly mortgage payment
Lenders use the shorthand PITI:
- Principal — the portion that pays down what you borrowed. Early in the loan this is small; it grows every month.
- Interest — the lender’s charge for the money. Early on this dominates the payment, which is why the first years of a 30-year loan build equity slowly.
- Taxes — county/municipal property tax, usually collected monthly into an escrow account and paid on your behalf twice a year.
- Insurance — homeowners (hazard) insurance, also typically escrowed.
Then the common add-ons:
- PMI (private mortgage insurance) — required by conventional lenders when your down payment is below 20%. It protects the lender, not you, and it falls off once you reach 20–22% equity.
- HOA dues — if the property is in a homeowners association. Not part of the loan, but a real monthly housing cost, so it belongs in the number.
The principal & interest formula
The P&I portion uses the standard amortizing-loan formula:
M = P · r · (1 + r)^n / ((1 + r)^n − 1)
where P is the loan amount (price minus down payment), r is the monthly interest rate (annual APR ÷ 12), and n is the number of monthly payments (years × 12). The calculator applies this exactly, then layers tax, insurance, HOA and PMI on top.
A useful intuition: at a 6.5% rate, a 30-year loan costs you roughly 2.3× the borrowed amount over its life once interest is included. A 15-year loan at the same rate costs only about 1.6× — far less total interest, but a much higher monthly payment.
How down payment changes everything
Down payment moves three levers at once:
- Loan size — more down means a smaller loan and a smaller P&I payment.
- PMI — crossing the 20% threshold removes PMI entirely. On a $400,000 home with 10% down, PMI at 0.5% adds roughly $150/month for years.
- Rate — many lenders price slightly better rates at higher down payments and stronger loan-to-value ratios.
The calculator flags your down-payment percentage and tells you exactly what reaching 20% would save each month, so the trade-off between “buy sooner with less down” and “wait and avoid PMI” is concrete instead of abstract.
Five ways to lower the monthly payment
- Larger down payment — shrinks the loan and can eliminate PMI.
- Shorter… or longer term — a 15-year loan saves enormous interest but raises the monthly cost; a 30-year loan lowers the monthly cost but costs far more over time. Match the term to your cash-flow reality, not just the headline.
- Buy down the rate — paying discount points lowers the rate. Worth it only if you will hold the loan past the break-even point.
- Shop insurance and appeal taxes — these are real parts of the payment and are often negotiable or appealable; they are not fixed by the lender.
- Remove PMI early — once your equity hits 20% (through payments or appreciation), request cancellation. It is not always automatic.
Term comparison at a glance
For a $320,000 loan at 6.5%:
| Term | Monthly P&I | Total interest |
|---|---|---|
| 30 years | ≈ $2,022 | ≈ $408,000 |
| 20 years | ≈ $2,386 | ≈ $253,000 |
| 15 years | ≈ $2,787 | ≈ $182,000 |
| 10 years | ≈ $3,634 | ≈ $116,000 |
The 15-year payment is about 38% higher than the 30-year, but it saves roughly $226,000 in interest. That gap is the single most important number most buyers never calculate.
Frequently asked questions
Is this an accurate estimate of what I will pay? The principal and interest figure is exact for the inputs you give. Taxes, insurance and PMI are estimates because they vary by county, insurer and lender. Use your actual quotes once you have them; the math here will then be precise.
What interest rate should I enter? Use the rate a lender has quoted you, not the national headline rate. Headline rates assume excellent credit and a 20–25% down payment. Your rate depends on credit score, loan type, down payment and points.
Why is so much of my early payment interest? Amortization front-loads interest. You owe interest on the full outstanding balance, which is largest at the start. As the balance falls, the interest share shrinks and the principal share grows — slowly at first, then faster.
When does PMI go away? On conventional loans, PMI must be cancelled automatically at 22% equity (78% loan-to-value) based on the original schedule, and you can request cancellation at 20%. Appreciation can get you there faster, but you usually have to ask and may need an appraisal.
Should I escrow taxes and insurance? Most lenders require escrow when your down payment is under 20%. Escrow spreads big annual bills into monthly amounts and prevents a missed tax payment, but you give up control of the cash flow. This calculator shows the monthly-equivalent either way.
Does a 15-year mortgage really save that much? Yes. At today’s rates a 15-year loan typically costs 55–60% less total interest than a 30-year loan on the same balance. The catch is the higher monthly payment, which must fit your budget with margin to spare.
What is not included in this number? Maintenance, utilities, and one-time closing costs are not part of the monthly payment. Budget 1–2% of the home’s value per year for maintenance separately, and use a closing cost calculator for the upfront cash.
Can extra payments shorten my loan? Significantly. Even one extra payment per year can cut a 30-year loan by several years and tens of thousands in interest. A dedicated mortgage payoff calculator models this precisely.
Methodology
Principal and interest use the standard fixed-rate amortization formula. PMI is modeled as an annual percentage of the loan balance, applied only while the down payment is below 20% (the conventional-loan threshold). Property tax and insurance are converted from annual figures to monthly equivalents, matching how escrow accounts work. Payoff date is computed from the full term assuming on-time payments. All figures are estimates for planning and education; they are not a loan offer, pre-approval, or financial advice. Verify final numbers with a licensed lender.
Written by the CalcCottage team. We build calculators that show the real number, not the marketing number.
Put this calculator on your site (free)
Copy-paste the code below. Free to use — please keep the attribution link.