Mortgage Payment Calculator

The payment that actually hits your checking account

U.S. home listings quote a price. Your budget lives on a monthly number that is larger than principal and interest. Escrow for property tax and homeowners insurance, plus PMI if you put less than 20% down, is how a “$2,000 mortgage” becomes $2,600. This mortgage calculator puts those pieces on one screen.

Enter a purchase price, down payment, rate, and term. Add annual tax and insurance. Optional HOA dues sit on top. The result is a planning PITI figure you can hold next to take-home pay—not a lock from a lender.

How the payment is built

Principal and interest use the same amortization formula as the loan calculator: M = P × r(1+r)^n / ((1+r)^n − 1), with r as the monthly rate and n as months. Property tax and insurance are divided by 12. If the loan is more than 80% of the price, PMI is estimated at 0.5% of the original principal per year.

Lifetime interest is principal-and-interest payments minus the amount financed. It does not include tax, insurance, or PMI, because those are not loan interest. They still leave your account every month.

How to use it like a U.S. buyer

Start with 20% down and 30 years—the combination most listings quietly assume. Then drop the down payment to 10% and watch PMI appear. Switch to 15 years and watch the payment jump while lifetime interest falls. If the payment exceeds about a third of take-home pay from the paycheck calculator, the house is expensive relative to the job, even if the listing looks “normal” for the zip code.

Property tax is local. A 1.2% default is a placeholder. Look up the county mill rate or last year’s tax bill on the property. Insurance should match a quote for the roof and deductible you would actually buy, not a national round number.

Examples

A $400,000 home with $80,000 down leaves $320,000 financed. At 6.5% for 30 years, principal and interest is about $2,023 a month. Add $4,800 tax and $1,800 insurance and escrow is $550 a month. With 20% down, PMI is $0 in this model, so housing is about $2,573 plus any HOA.

The same house with 10% down ($40,000) finances $360,000, raises the P&I, and adds PMI. That is why “5% down” listings can look affordable until the full monthly number shows up.

What this is not

It is not an FHA, VA, or USDA underwriting engine. Those loans have different insurance and fee rules. It is not a cash-to-close worksheet: origination, title, and prepaid escrow at closing are extra. Adjustable-rate mortgages will not stay on this payment when the index moves.

Run take-home pay next if you are stretching for a house in a high-tax state. The mortgage does not know your California or Texas paycheck. You have to put the two numbers on the same table. If you already have a loan and want to throw extra at principal, use the mortgage payoff calculator. If the question is a new rate and term, that is the refinance calculator.

Typical examples

Frequently asked questions

What is PITI?

Principal, interest, taxes, and insurance—the core monthly housing payment U.S. lenders underwrite. This calculator also lets you add HOA dues and an estimated PMI line if your down payment is under 20%.

Does 20% down really skip PMI?

On most conventional loans, private mortgage insurance is required when you borrow more than 80% of the purchase price. This tool uses a flat 0.5% of the loan per year as a planning PMI figure. Your actual PMI depends on credit, LTV, and the insurer.

Should I use a 15-year or 30-year mortgage?

A 30-year loan has a lower monthly payment and more total interest. A 15-year loan costs more each month and clears interest faster. Use the term buttons and watch lifetime interest next to the payment.

Are property tax and insurance included?

Yes, as annual amounts you enter, divided by 12. U.S. averages are often near 1% of home value for tax, but Texas, New Jersey, and Illinois can be much higher, while some states are lower. Use your county estimate, not a national average, when you have one.

Will this match my lender’s Loan Estimate?

Not exactly. Lenders add origination, points, prepaid interest, and sometimes flood insurance. This page is for shopping a price and rate before you sit with a loan officer.