Mortgage Payment Calculator

Loan Details

Home Price ? The total purchase price of the home you want to buy before any down payment is subtracted.

Loan Term ? The number of years you have to repay the loan. Shorter terms mean higher monthly payments but far less interest paid overall.

Down Payment ? The upfront cash you pay toward the home purchase. The remainder becomes your loan (principal). Putting down at least 20% lets you avoid PMI.

- You are putting down 20% or more - no PMI required. Good work!

Interest Rate ? The annual percentage the lender charges on the outstanding loan balance. Even a 0.5% difference can cost or save tens of thousands of dollars over the life of the loan.

Monthly Costs (Optional)

Property Taxes (Annual) ? A tax levied by local government based on your home's assessed value. Typically 0.5%-2.5% of the home's value per year. Check your county assessor's website for your rate.

Divided by 12 for monthly portion

Homeowners Insurance (Annual) ? Protects your home and belongings against damage or theft. Lenders require it. The national average is roughly $1,500-$2,500 per year depending on location and home value.

Divided by 12 for monthly portion

HOA Fees (Monthly) ? Homeowners Association fees paid to a governing body in planned communities (condos, townhomes, subdivisions). They cover shared amenities and maintenance. Not all homes have HOA fees.

PMI - Private Mortgage Insurance ? Required by lenders when your down payment is less than 20% of the home price. It protects the lender (not you) if you default. PMI typically costs 0.5%-1% of the loan amount per year and can be removed once you reach 20% equity.

$ / mo. (est.)

- Your down payment is under 20%. PMI is automatically estimated at 0.85% annually.

Estimated Monthly Payment

Principal + Interest + Taxes + Insurance

Payment Breakdown

Principal & Interest ? Principal is the original loan amount you borrowed. Interest is the fee the lender charges. This combined payment is calculated using the standard amortization formula. $0

Property Taxes $0

Homeowners Insurance $0

HOA Fees $0

PMI ? Private Mortgage Insurance is required because your down payment is under 20%. Once your equity reaches 20%, you can request PMI removal - saving you this monthly cost. $0

Loan Summary

Loan Amount ? The amount you are borrowing: Home Price minus your Down Payment. This is also called the Principal of the loan.

Total Principal Paid

Total Interest Paid ? The total amount you will pay the lender on top of the loan balance over the entire life of the loan. This is why shorter terms and lower rates save so much money.

Total Cost of Loan ? Total Principal plus Total Interest. This is the actual total amount you will repay to the lender over the life of the loan, excluding taxes, insurance, and fees.

Amortization ? The process of gradually paying off a debt through regular scheduled payments. Early in the loan, most of each payment is interest. Over time, more goes toward the principal balance.

0 payments

Escrow (Monthly) ? An escrow account is managed by your lender and holds your property tax and insurance payments. Each month a portion is collected with your mortgage payment, and the lender pays the bills on your behalf.

Understanding Your Mortgage Payment

A mortgage payment is rarely just "loan repayment." Lenders typically combine four separate costs into a single monthly bill, often abbreviated as PITI: Principal, Interest, Taxes, and Insurance. This calculator estimates each of those pieces separately, plus optional costs like PMI and HOA dues, so you can see exactly where your money goes each month rather than just one combined number.

The principal and interest portion is calculated using a standard amortization formula based on your loan amount, interest rate, and loan term. Property taxes and homeowners insurance are usually estimated as annual amounts and divided by twelve to get a monthly figure. If your lender requires an escrow account, these amounts are collected with your mortgage payment and the lender pays the bills on your behalf when they come due.

Original insight: the first few years matter more than people realize. Amortization is front-loaded, meaning the majority of your early payments go toward interest rather than principal. On a 30-year loan, it can take over a decade before more than half of a single payment is reducing your loan balance. This is why even small extra principal payments made early in the loan term have an outsized effect: every extra dollar paid down early is a dollar that never accrues interest for the remaining life of the loan. Run this calculator with and without an extra monthly principal amount to see how dramatically the total interest paid and payoff timeline can shrink.

Key Terms Explained

Principal

The original amount borrowed, before interest. Your monthly payment gradually reduces this balance over the life of the loan.

Interest Rate vs. APR

The interest rate is the percentage charged on your loan balance. The APR (Annual Percentage Rate) includes the interest rate plus certain lender fees and closing costs, giving a fuller picture of the loan's true yearly cost. This calculator uses the interest rate to compute payments.

PMI (Private Mortgage Insurance)

An extra monthly cost typically required when a down payment is less than 20% of the home's value. PMI protects the lender, not the borrower, and can usually be removed once you reach 20% equity in the home.

Escrow

An account managed by your lender that collects a portion of your property taxes and insurance with each mortgage payment, then pays those bills on your behalf when they are due.

Amortization

The process of paying off a loan through regular payments, where each payment is split between interest and principal according to a predetermined schedule.

HOA (Homeowners Association) Fees

Recurring dues charged by a community or building association for shared amenities and maintenance. These are not paid to your lender but are often included when budgeting total monthly housing costs.

Frequently Asked Questions

Why is my actual mortgage payment different from this estimate?

This calculator provides an estimate based on the figures you enter. Actual payments can differ due to lender-specific fees, rounding in escrow calculations, changes in property tax assessments or insurance premiums, and adjustable interest rates if your loan is not fixed-rate.

How does the loan term affect the total cost of the loan?

A shorter loan term, such as 15 years instead of 30, results in a higher monthly payment but a much lower total interest cost, since the balance is paid off faster and has less time to accrue interest. A longer term lowers the monthly payment but increases the total interest paid over the life of the loan.

Can I get rid of PMI?

In most cases, yes. Once your loan balance drops to 80% of the home's original value, either through payments or appreciation, you can typically request that your lender remove PMI. Some loans automatically cancel PMI at 78% loan-to-value.

What happens if I make extra payments toward principal?

Extra principal payments reduce your loan balance faster, which reduces the amount of interest that accrues going forward. This can shorten your payoff timeline by years and save a substantial amount in total interest, especially when extra payments are made early in the loan term.

Should I include taxes, insurance, PMI, and HOA in my budget?

Yes. While the principal and interest portion is fixed by your loan terms, taxes, insurance, PMI, and HOA fees can add a significant amount to your true monthly housing cost. Including all of these gives a more realistic picture of what you can comfortably afford.

This calculator provides estimates for educational purposes only. Results are not guaranteed and do not constitute financial advice. Actual mortgage payments may vary based on lender terms, credit score, local tax rates, and other factors. Consult a licensed mortgage professional before making any financial decisions.