Mortgage Calculator
Estimate your full monthly mortgage payment (PITI) including property tax, homeowners insurance, PMI, and HOA, plus total interest and a year-by-year amortization schedule.
Total monthly payment
$2,539.29
Full monthly housing payment (PITI): principal, interest, property tax, homeowners insurance, PMI, and HOA.
- Principal & interest
- $2,022.62
- Property tax
- $366.67
- Homeowners insurance
- $150.00
- PMI
- $0.00
- HOA dues
- $0.00
- Loan amount
- $320,000.00
- Total interest paid
- $408,140.64
- Total of P&I payments
- $728,140.64
Assumptions
- Fixed interest rate for the life of the loan.
- Interest is charged each month on the remaining balance. The monthly rate is the annual rate divided by 12, the number of payments is the term in years times 12, and each payment is made at the end of the month.
- The total monthly payment is PITI: principal and interest plus property tax, homeowners insurance, PMI, and HOA dues.
- Property tax is an annual percent of the home price you enter, homeowners insurance is the annual premium you enter, and HOA dues are a monthly amount. Each is converted to a level monthly figure and held constant for the whole term, with no escalation for inflation, rising premiums, or reassessment.
- PMI is an annual percent of the original loan amount, charged as a flat monthly amount whenever your down payment is below 20 percent of the price (loan-to-value above 80 percent). It is based on the starting loan balance, is not recalculated as the balance falls, and is never removed during the loan, so a real lender will usually drop it sooner.
- Each month's interest is rounded to the nearest cent (half up), and the final payment absorbs any leftover rounding so the balance ends at exactly zero.
- All figures are in nominal dollars and are not adjusted for inflation.
- Total interest paid and total of payments cover principal and interest only. They do not add up the property tax, insurance, PMI, or HOA you would also pay.
- Not modeled: closing costs, lender points and origination fees, extra or biweekly payments, adjustable or variable rates, and the tax deductibility of mortgage interest or property tax.
- This is an estimate for educational purposes only, not financial, legal, or tax advice. Your lender's figures will differ, and tax, insurance, and PMI vary by location and provider. Consult a qualified professional and your lender for numbers specific to your situation.
How it works
Your monthly payment covers principal and interest using the standard amortization formula:
M = P · r · (1 + r)^n / ((1 + r)^n − 1)
where P is the loan amount (home price − down payment), r is the monthly interest rate (annual rate ÷ 12), and n is the number of monthly payments (years × 12). Every figure is computed with decimal-precise math, never binary floats, so the cents are correct, and the final payment absorbs rounding so the balance ends at exactly zero.
Worked example
A $300,000 loan at 6.5% for 30 years:
- monthly rate r = 6.5% ÷ 12 = 0.5416…%
- payments n = 30 × 12 = 360
- M = 300,000 · r · (1 + r)^360 / ((1 + r)^360 − 1) = $1,896.20 per month
Over the full term you pay more than $380,000 in interest, more than the loan itself. That is why the interest rate and the term length matter so much: a shorter term or a larger down payment cuts total interest substantially.
What’s included (and what isn’t)
The worked example above is the principal and interest (P&I) portion. The headline total monthly payment adds escrow on top of P&I: property tax (an annual percent of the home price), homeowners insurance (your annual premium), PMI (when your down payment is under 20%), and any HOA dues, each spread evenly across the months. The breakdown lists every piece, and a P&I-only line is shown on its own.
Escrow amounts are held constant for the whole term and are not escalated for inflation or reassessment. PMI is a flat monthly figure based on your original loan and is not removed as your balance falls, so a real lender will usually drop it sooner. The total interest and total of payments figures cover P&I only. Not modeled: closing costs, lender points, extra or biweekly payments, adjustable rates, and tax deductibility. Results are estimates for education, not advice; your lender’s numbers will differ.
Sources
- Consumer Financial Protection Bureau, buying a house
- Standard fixed-rate amortization (present value of an annuity) formula.
Frequently asked questions
- How is the monthly mortgage payment calculated?
- It uses the standard amortization formula M = P·r·(1+r)^n / ((1+r)^n − 1), where P is the loan amount, r is the monthly interest rate (annual rate ÷ 12), and n is the number of monthly payments (years × 12).
- Does this include property taxes and insurance?
- Yes. The headline total monthly payment is full PITI: principal and interest plus property tax, homeowners insurance, PMI, and HOA dues. The breakdown shows each piece separately, and the principal and interest line is listed on its own if you want P&I only. PMI is included whenever your down payment is below 20 percent of the price.
- Does the calculator stop charging PMI once I reach 20 percent equity?
- No. PMI here is a flat monthly amount based on your original loan and your starting down payment, and it is carried for the full term. In practice a lender usually cancels PMI once your equity reaches about 20 to 22 percent, so your real PMI cost is likely lower in later years. Treat the PMI line as a steady estimate, not a schedule.
- How much total interest will I pay?
- The total interest is the sum of the interest portion of every payment over the loan. A longer term lowers the monthly payment but increases total interest; a larger down payment reduces both the loan and the interest.
Related calculators
Last reviewed June 2026. For education, not financial advice.