Mortgage Calculator
Calculate your exact monthly mortgage payment including principal and interest, PMI if your down payment is under 20%, property tax, home insurance, and HOA fees. See the full year-by-year amortization schedule and find out how much home you can afford.
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How It Works
The standard formula calculates principal and interest. Add property tax, insurance, HOA, and PMI for your true monthly cost. Toggle Advanced Options to include all these costs in one calculation.
M = P x r(1+r)^n / [(1+r)^n - 1]$400K home, 20% down, 6.5%, 30yr = $2,023/mo P&IPMI is calculated as an annual percentage of the loan amount divided by 12. Rates depend on LTV: 80 to 85% LTV costs about 0.375%/yr and 90 to 95% LTV costs about 0.875%/yr. PMI stops automatically at 80% LTV.
PMI = Loan x PMI_rate / 12$350K loan, 10% down, 0.5% PMI rate = $146/monthBased on the 28/36 rule: max housing equals 28% of gross monthly income, limited further if total debts exceed 36% of income. The Affordability tab calculates your maximum home price automatically from your income and debts.
Max Payment = min(income x 0.28, income x 0.36 - other debts)$100K income, $500 other debts = max home around $378KExtra monthly payments go directly to principal, reducing future interest. A small extra payment early in the loan saves much more than the same extra payment later because it eliminates compounding interest on a larger balance.
Interest saved = original total - new total with extra payment$300K at 6.5%, add $500 extra/mo = save $95K and 9 yearsProperty tax averages about 1.1% of home value per year in the US but varies widely by location. It is collected monthly in an escrow account alongside your mortgage payment and paid to the government when due.
Monthly tax = Home value x tax_rate / 12$400K home, 1.2% tax rate = $400 per month in escrowIn a 30-year mortgage the first years are mostly interest payments. By year 10 you have paid less than 30% of the principal. This is why making extra payments in early years has the largest impact on total interest paid.
Balance after n payments = P(1+r)^n - M[(1+r)^n - 1]/rYear 5 of $300K loan: remaining balance approximately $279KQuick Reference
Common examples — verify instantly above.
30yr Fixed
$400K, 20% down, 6.5%
$2,023/mo P&I
15yr Fixed
$300K, 20% down, 6.0%
$2,531/mo P&I
With PMI
$350K, 10% down, 6.5%
$2,213/mo + $146 PMI
Affordability
$100K income, 6.5% rate
Max ~$378K home
Total Interest
$300K, 30yr, 6.5%
$382K total interest
Early Payoff
$300K, +$500/mo extra
Save ~$95K, 9yr sooner
PMI End Point
$350K loan at 90% LTV
PMI ends near $280K balance
Down Payment
20% vs 10% on $400K
Save $146/mo eliminating PMI
Tips & Shortcuts
Shop mortgage rates from at least 3 lenders — even a 0.25% rate difference saves thousands over 30 years.
A 15-year mortgage typically offers a lower interest rate in addition to far less total interest paid.
Pay half your monthly mortgage every two weeks instead of one full monthly payment — you make 13 payments per year instead of 12, saving years of interest.
If your down payment is close to 20%, stretch to reach it and eliminate PMI immediately, saving $100 to $200 per month.
Mortgage points let you pay upfront to lower your rate. Calculate the break-even: cost of points divided by monthly savings gives months to recoup the investment.
Property tax rates vary enormously by county. Always verify your specific county rate before budgeting for a home purchase.
Common Mistakes to Avoid
Forgetting PMI in the monthly budget
If your down payment is under 20%, PMI adds $100 to $300 per month. Many buyers are surprised by this cost — always include it in budget planning.
Using gross income for the 28/36 affordability rule without checking take-home
The 28/36 rule uses gross income, but your actual budget must work with take-home pay. Do not stretch to the maximum ratio without testing it against your real monthly cash flow.
Comparing only monthly payments instead of total loan cost
A lower monthly payment from a longer term can cost tens of thousands more in total interest. Always compare the full cost of the loan, not just the monthly amount.
Forgetting closing costs in the budget
Closing costs of 2% to 5% of the loan amount add thousands of dollars. These must be paid upfront or rolled into the loan and are not reflected in the monthly payment calculation.
Assuming the lowest advertised rate applies to you
The best advertised rates require excellent credit, large down payments, and specific loan types. Get personalized quotes from multiple lenders to know your actual rate.
Not reviewing the amortization schedule before signing
Without seeing the schedule, it is easy to be surprised by how slowly the principal balance drops in the early years of a long-term mortgage at high interest rates.
Frequently Asked Questions
PITI stands for Principal, Interest, Taxes, and Insurance — the four main components of a monthly mortgage payment. Principal reduces your loan balance, interest is the cost of borrowing, taxes are property taxes collected monthly in escrow, and insurance covers homeowners insurance and PMI if applicable.
PMI (Private Mortgage Insurance) is required when your down payment is less than 20% of the home price. It protects the lender if you default. PMI typically costs 0.3% to 1.5% of the loan annually and is automatically removed once your loan balance drops to 80% of the original home value.
Lenders recommend spending no more than 28% of gross monthly income on housing costs and no more than 36% on total debt including housing. At $6,000 per month income, your maximum housing payment should be $1,680 and total debt $2,160.
A 15-year mortgage has higher monthly payments but you pay far less total interest. A 30-year mortgage lowers monthly payments but costs much more over the life of the loan. The right choice depends on your monthly budget and long-term financial goals.
A larger down payment reduces your loan amount, lowers monthly payments, may secure a better interest rate, and eliminates PMI if you reach 20%. Moving from 10% to 20% down can save tens of thousands over the loan life.
An amortization schedule shows exactly how each monthly payment splits between principal and interest over the life of the loan. In early years, most of the payment goes to interest. As the loan matures, more goes toward principal, which is why extra early payments save the most.
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