A mortgage payment is more than principal and interest. Most homeowners also pay property tax and insurance each month through escrow, plus PMI if they put less than 20% down. This calculator adds them all up so you can see the real monthly cost of a home before you talk to a lender.
How to use this calculator
- Enter the home price and your down payment as a percentage.
- Add the interest rate you've been quoted and choose the loan term.
- Adjust property tax, insurance, HOA and PMI to match the home. The defaults are typical US figures.
- Optionally add an extra monthly principal payment to see how much interest and time you'd save.
How it's calculated
The principal-and-interest part uses the standard amortization 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 rate ÷ 12) and n is the number of monthly payments. Property tax and insurance are divided by 12 and added on. PMI is estimated as a yearly percentage of the loan, and only applies when the down payment is under 20%.
Example: a $400,000 home with 20% down is a $320,000 loan. At 6.5% for 30 years, principal and interest come to $2,022.62 a month. Add $4,400 a year of property tax and $1,800 of insurance, and the total is about $2,539 a month.
Common questions
See all: Mortgage payments by loan amount →
Frequently asked questions
What is included in a mortgage payment?
Usually principal, interest, property tax and homeowners insurance (often called PITI). If you put less than 20% down on a conventional loan you'll also pay private mortgage insurance (PMI), and some homes have HOA dues.
How much does an extra payment save?
Extra principal goes straight to reducing the balance, so you pay less interest from then on. On a 30-year loan, even $100 to $200 extra a month can cut years off the term. Enter an amount in the extra-principal field to see your savings.
Is a 15-year or 30-year mortgage better?
A 15-year loan has higher monthly payments but usually a lower rate and far less total interest. A 30-year loan keeps payments lower and more flexible. Compare both terms in the calculator to see the difference in monthly cost and total interest.
When does PMI go away?
On conventional loans, lenders must cancel PMI automatically when your balance reaches 78% of the home's original value, and you can ask to remove it at 80%. FHA mortgage insurance has different rules and often lasts for the life of the loan.
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Estimates for general information only, not financial advice. See how we calculate.