Mortgage Calculator
Enter the home price, your down payment, the loan term and the interest rate. Add property tax, homeowners insurance, PMI and HOA dues if your payment includes them. The calculator returns principal and interest on a fixed-rate loan, each added cost as a monthly line and the total monthly payment. With less than 20% down it also counts the payments until PMI ends under federal law.
How to use the Mortgage Calculator
- Enter your numbers in the Mortgage Calculator above.
- Press the Calculate button to see the result.
- To try other numbers, change any value and press the button again.
The mortgage payment formula
M = P · r(1 + r)^n / ((1 + r)^n − 1)
P is the loan amount, which is the home price minus the down payment. r is the annual interest rate divided by 12, and n is the number of monthly payments, the term in years times 12. M is the fixed monthly payment of principal and interest, rounded to the cent. Each month's interest is rounded to the cent too, so the last payment pays off what is left and can differ from M. The total you repay adds up every payment, the last one included, and the total interest is that total minus P. Property tax and homeowners insurance are the yearly amounts divided by 12. A tax entered as a percent is that share of the home price, divided by 12. PMI is the loan amount times the PMI rate, divided by 12. HOA dues go in as entered. Each line is rounded to the cent, and the total monthly payment is their sum.
Worked example
A $375,000 home with $37,500 down leaves a $337,500 loan. At 6.5% over 30 years, principal and interest come to $2,133.23 a month. Property tax of $4,500 a year adds $375.00 a month, and entering it as 1.2% of the home price gives the same figure. Homeowners insurance of $1,800 a year adds $150.00. PMI at 0.5% of the loan adds $140.63. The total monthly payment is $2,798.86. The down payment is 10%, so PMI is charged on the first 109 payments, 9 years and 1 month, until the scheduled balance reaches 78% of the home price. After that the payment is $2,658.23.
Frequently asked questions
What does this mortgage calculator include?
It shows principal and interest on a fixed-rate loan and adds property tax, homeowners insurance, PMI and HOA dues when you enter them. Each one gets its own monthly line, followed by the total monthly payment. You also get the loan amount, the total principal and interest over the term and the total interest. For a month-by-month table of interest, principal and balance, use the mortgage amortization calculator.
What is PITI?
PITI stands for principal, interest, taxes and insurance. Principal and interest repay the loan. Taxes means the property tax on the home, and insurance means the homeowners policy. When your lender collects tax and insurance with the loan payment, PITI is what you pay each month. PMI and HOA dues come on top if your loan or your home has them, and this calculator adds both.
When does PMI apply, and when does it end?
The calculator adds PMI when your down payment is under 20%, which means the loan is more than 80% of the home price. Under the Homeowners Protection Act, your servicer must end PMI on the date the balance is scheduled to reach 78% of the original value, or the month after the midpoint of the term if that comes first, as long as you are current on payments. The result counts the payments until then on the original schedule, using the home price as the original value. You can also ask to cancel PMI once the scheduled balance reaches 80%. These rules apply to loans on a single-family principal residence closed on or after July 29, 1999. FHA and VA loans follow different rules, as the CFPB explains.
What is an escrow account?
An escrow account is an account your servicer keeps to pay your property tax and homeowners insurance out of the share of each monthly payment set aside for them, which is why the calculator spreads both over 12 months and adds them to the total.
How does the down payment affect my payment?
The calculator subtracts the down payment from the home price to get the loan amount, so every dollar you put down is a dollar you do not borrow. On a $375,000 home at 6.5% over 30 years, $37,500 down means $2,133.23 a month in principal and interest and $430,462.33 in interest. With $75,000 down the principal and interest are $1,896.20 and the interest $382,636.71. At 20% down or more, the calculator adds no PMI. To work out the down payment a target price needs, or the price your savings cover, try the down payment calculator.
Should I choose a 15-year or 30-year term?
A 15-year term costs more each month and far less in total. On a $300,000 loan at 6.5%, 30 years means $1,896.20 a month and $382,636.71 in interest. Over 15 years the payment rises to $2,613.32 and the interest drops to $170,398.28, which is $212,238.43 less. Pick the shorter term only if the higher payment fits your budget with room to spare.
How much can extra payments save me?
Every extra dollar goes to principal, so each later month charges interest on a smaller balance. This calculator assumes the same payment every month. The mortgage payoff calculator takes an extra monthly amount. Adding $200 a month to the $1,896.20 payment on the $300,000 loan above pays it off 83 months sooner and saves $103,450.19 in interest.