Mortgage Calculator
Enter the home price, down payment, rate, and term to see your true monthly payment — principal & interest plus property tax, insurance, PMI, and HOA. Results update as you type.
| Year | Principal paid | Interest paid | PMI paid | Balance |
|---|
What the results mean
Two numbers matter most:
- Total monthly payment — the full PITI (+ PMI + HOA) amount leaving your account each month. This is the number to compare against your income, not just principal & interest.
- Total interest — what the loan costs beyond the amount borrowed. On a 30-year loan it often rivals the purchase price itself.
The breakdown rows show where every dollar goes. Notice how tax and insurance can add 20–30% on top of principal & interest — the "sticker price" of a mortgage is never the whole story.
How it works
- Subtract the down payment from the home price to get the loan amount.
- Compute the monthly principal & interest payment with the standard amortization formula so equal payments retire the loan exactly at term end.
- Add property tax ÷ 12, insurance ÷ 12, monthly PMI (while balance is above 80% of the home value), and HOA.
- Simulate month-by-month to total the interest, track the PMI drop-off point, and build the yearly schedule.
Formula
Monthly total = P&I + (tax ÷ 12) + (insurance ÷ 12) + PMI + HOA, where P = loan amount, i = monthly rate, n = total months. PMI applies while the balance exceeds 80% of the home's value.
Example
Example: $400,000 home, 20% down, 6.5% for 30 years
- Principal & interest: ≈ $2,023/mo · Property tax ($4,400/yr): ≈ $367/mo · Insurance ($1,800/yr): ≈ $150/mo
- Total monthly payment: ≈ $2,539 · Total interest: ≈ $408,000
Same home, 10% down ($40,000), PMI 0.5%
- Monthly payment jumps to ≈ $2,942 (P&I ≈ $2,275 + PMI $150/mo).
- PMI drops off around year 8 — total PMI paid ≈ $14,100. That's the hidden cost of a small down payment.
Use cases
- House hunting budget — translate any listing price into the real monthly number and check it against 28% of your income.
- PMI avoidance math — compare 10% vs. 20% down: is stretching for 20% worth the PMI savings?
- 15 vs. 30 years — see the quarter-million-dollar interest difference on the same loan.
- Refinance check — model your remaining balance at a lower rate and compare total interest.
Frequently asked questions
What is PITI?
PITI stands for Principal, Interest, Taxes, and Insurance — the four parts of a typical mortgage payment. Lenders often quote just principal and interest, but your actual monthly bill includes property tax and homeowner's insurance too (plus PMI and HOA when they apply). This calculator shows all of it.
When does PMI go away?
For conventional loans, you can request PMI removal once your balance drops to 80% of the home's original value, and lenders must drop it automatically at 78%. This calculator assumes PMI ends at 80% and tells you roughly when that happens — putting 20% down avoids PMI entirely.
How much house can I afford?
A common guideline is the 28/36 rule: spend no more than 28% of gross monthly income on housing (PITI + HOA) and no more than 36% on all debts combined. Enter a home price above and compare the total monthly payment to 28% of your income.
15-year vs. 30-year mortgage — which is better?
A 15-year loan has higher monthly payments but a lower rate and far less total interest — on a $320,000 loan at 6.5%, going 15-year instead of 30-year saves roughly $226,000 in interest. The 30-year costs more overall but keeps monthly payments (and risk) lower. There's no universal winner; it depends on your cash flow.
Can I use this outside the US?
Yes, for any fixed-rate home loan — the amortization math is the same everywhere. Enter amounts in your own currency. Note that property tax, insurance, and PMI conventions differ by country, so treat those fields as generic annual/monthly costs.
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Last updated: 2026-10-04 · WebTools Hub