Use this free mortgage calculator to estimate your monthly house payment, including principal, interest, property tax, homeowners insurance, PMI and HOA dues. Add extra payments to see how much interest you can save, then review the full amortization schedule by year or by month.
Estimated monthly payment
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Loan balance over time
Amortization schedule
Estimates only. Your actual rate, payment, taxes, insurance and PMI depend on your lender, credit profile and location.
How to use this mortgage calculator
The calculator updates as you type. Here is what each field means:
- Home price: the purchase price of the home.
- Down payment: the cash you pay upfront, entered as a percentage of the price or a dollar amount. The loan amount is the home price minus the down payment.
- Interest rate: the annual rate on your loan. Use a rate quote from a lender if you have one; your rate depends on your credit score, down payment and loan type.
- Loan term: how long you have to repay the loan. 30-year and 15-year fixed mortgages are the most common.
- First payment: the month and year of your first payment, used to build the payoff date and schedule.
- Property tax: your yearly tax bill, as a percentage of the home price or a dollar amount. The calculator starts at 0.9%, close to the national average.
- Home insurance: your yearly homeowners insurance premium.
- PMI: private mortgage insurance, entered as a yearly percentage of the loan. It only applies when your down payment is under 20%.
- HOA dues: monthly homeowners association fees, if the property has them.
- Extra payments (optional): an extra amount every month, once a year, or as a one-time lump sum. All extra money goes toward principal.
How your monthly mortgage payment is calculated
The principal and interest part of a fixed-rate mortgage uses the standard amortization formula:
M = P × r(1 + r)n ÷ [(1 + r)n − 1]
- M = monthly principal and interest payment
- P = loan amount
- r = monthly interest rate (annual rate ÷ 12)
- n = number of monthly payments (years × 12)
Example: a $400,000 home with 20% down leaves a $320,000 loan. At 6.5% over 30 years, principal and interest come to $2,022.62 a month. Add property tax at 0.9% ($300 a month) and $1,500 a year of insurance ($125 a month), and the full payment is about $2,447.62. Over 30 years you would pay roughly $408,142 in interest, more than the amount you borrowed.
What’s included in a mortgage payment (PITI)
Lenders often describe a house payment as PITI: principal, interest, taxes and insurance. Many borrowers pay taxes and insurance through an escrow account, so all four are bundled into one monthly bill.
- Principal: the part that pays down your loan balance. It is small at first and grows every month.
- Interest: the lender’s charge for the loan. It is largest in the early years because it is calculated on a bigger balance.
- Property taxes: set by your county or city. The national effective rate on single-family homes was about 0.9% in 2025, but it ranges from roughly 0.3% in Hawaii to over 1.8% in Illinois, so use your local rate if you know it.
- Homeowners insurance: protects the home against damage and is required by lenders. See our guide to house insurance costs and coverage.
PMI and HOA dues are not part of PITI, but they are real monthly costs, so the calculator includes them in your total payment.
How PMI works and when it goes away
If you put less than 20% down on a conventional loan, lenders usually require private mortgage insurance. PMI protects the lender, not you. According to Urban Institute data cited by Experian, it typically costs about 0.46% to 1.50% of the loan amount per year, depending mainly on your credit score and down payment.
Under the federal Homeowners Protection Act, PMI on most conventional loans does not last forever:
- At 80% loan-to-value, you can ask your servicer in writing to cancel PMI, as long as you are current on payments and meet the lender’s requirements.
- At 78% loan-to-value (based on the original schedule), PMI must end automatically if you are current.
- At the midpoint of the loan (after 15 years on a 30-year mortgage), PMI must end even if neither threshold was reached.
The calculator removes PMI once your balance falls to 78% of the home price and shows the month it ends. For example, with 10% down on the same $400,000 home and 0.5% PMI, you would pay $150 a month in PMI for about nine years, roughly $16,350 in total. Making extra payments and requesting cancellation at 80% can end it sooner. FHA loans use a different mortgage insurance premium (MIP) with its own rules.
How extra payments save you money
Every extra dollar you pay goes straight to principal. A lower balance means less interest next month, and that saving compounds over the life of the loan.
On the $320,000, 6.5%, 30-year example above, paying just $200 extra a month saves about $105,429 in interest and pays off the loan 6 years and 7 months early. Try the yearly option to model a tax refund or bonus, or the one-time option for a lump sum.
Before prepaying, check that your loan has no prepayment penalty and tell your servicer to apply extra money to principal. It also makes sense to keep an emergency fund and pay off higher-interest debt first.
How to read the amortization schedule
The amortization schedule shows how each payment is split between principal and interest and what you still owe afterward. Switch between the yearly view for the big picture and the monthly view for every payment. You can download the schedule as a CSV file or print it.
Early on, most of your payment goes to interest. In the first full year of the example loan, about $20,650 goes to interest and only about $3,600 to principal. The balance chart shows the turning point when principal starts to shrink the loan faster.
15-year vs. 30-year mortgage
A shorter term raises the monthly payment but cuts total interest sharply. Using the same $320,000 loan at 6.5%:
| Loan term | Principal & interest | Total interest |
|---|---|---|
| 30 years | $2,022.62 | $408,142 |
| 15 years | $2,787.54 | $181,758 |
15-year loans also tend to have lower rates than 30-year loans, which widens the gap further. A 30-year loan with extra payments is a middle path: a lower required payment, with the option to pay it down faster when you can.
How much house can you afford?
A common guideline is the 28/36 rule: keep your total housing payment under about 28% of your gross monthly income and all debt payments under about 36%. Lenders may approve higher ratios depending on the loan program, but a payment that fits your budget matters more than the maximum you qualify for.
When you’re ready to shop, a mortgage pre-approval shows sellers you’re a serious buyer and gives you a real rate to plug into this calculator. If you’re buying your first home, check whether you qualify as a first-time home buyer for lower down payment programs.
Ways to lower your monthly mortgage payment
- Improve your credit score before applying to qualify for a lower rate and cheaper PMI. Start by checking your credit report for errors.
- Put 20% down if you can, to avoid PMI entirely.
- Compare offers from several lenders. Even 0.5% matters: at 6% instead of 6.5%, the example loan costs about $104 less a month and about $37,000 less in total interest.
- Shop for homeowners insurance and ask about bundling discounts.
- Appeal your property tax assessment if it looks too high compared with similar homes.
Frequently asked questions
What is included in a monthly mortgage payment?
Most mortgage payments include principal, interest, property taxes and homeowners insurance (PITI). If you put less than 20% down you may also pay PMI, and some properties have HOA dues. This calculator includes all of these in your estimated monthly payment.
How accurate is this mortgage calculator?
The principal and interest figure uses the standard amortization formula and matches what lenders calculate for a fixed-rate loan. Taxes, insurance, PMI and HOA are estimates based on what you enter, so your actual payment will depend on your lender’s quote, your local tax rate and your insurance premium.
How much is PMI on a mortgage?
PMI typically costs about 0.46% to 1.50% of the loan amount per year, depending mostly on your credit score and down payment. On a $360,000 loan, 0.5% PMI is $150 a month.
When does PMI go away?
On most conventional loans you can request cancellation once your balance reaches 80% of the home’s original value, and PMI ends automatically when it is scheduled to reach 78%. It must also end at the midpoint of the loan term if you are current on payments.
Is it better to make extra mortgage payments or invest?
Extra payments give you a guaranteed return equal to your mortgage rate and reduce total interest. Investing may earn more over time but carries risk. Many people first build an emergency fund, capture any employer retirement match and pay off higher-interest debt, then decide based on their rate and goals.
Does a 15-year mortgage save money?
Yes. A 15-year loan has a higher monthly payment but far less total interest. On a $320,000 loan at 6.5%, a 15-year term saves about $226,000 in interest compared with a 30-year term, before counting the lower rate 15-year loans usually get.
This calculator provides estimates for educational purposes only and is not financial advice. Your actual rate, payment and costs will depend on your lender, credit profile and location. Sources: ATTOM 2025 property tax report; Consumer Financial Protection Bureau guidance on PMI cancellation; Urban Institute PMI data via Experian.