Mortgage Calculator
Estimate your full monthly house payment in seconds — principal, interest, property tax, insurance, HOA and PMI all in one number. Then see your total interest and a complete payoff schedule so you can shop with confidence.
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New to this? Leave the defaults — they're realistic — and just change the home price, down payment and rate.
Principal vs. interest
Over the full term, how much of your principal-and-interest payments repays the home versus the cost of borrowing.
Amortization schedule
Year-by-year summary of how your loan balance falls. Expand for the full month-by-month detail. (Principal & interest only — taxes, insurance, HOA and PMI aren't part of the loan balance.)
| Period | Starting balance | Principal paid | Interest paid | Ending balance |
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Show full month-by-month schedule
| Period | Starting balance | Principal paid | Interest paid | Ending balance |
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How mortgage payments work
A fixed-rate mortgage is a fully-amortizing loan: you borrow the home price minus your down payment, then repay it in equal monthly installments over a set number of years. Each payment toward the loan is split between interest (the lender's charge for that month) and principal (the balance you actually owe). Early on, your balance is large, so most of the payment is interest; as the balance shrinks, more of every payment chips away at principal. That shifting split is exactly what the amortization schedule above shows.
Your real housing cost is bigger than just principal and interest. Lenders bundle four things into one monthly bill — known as PITI for Principal, Interest, Taxes and Insurance. The property tax and homeowners insurance portions are usually collected into an escrow account: the lender sets aside one-twelfth of the annual amounts each month, then pays the tax bill and insurance premium on your behalf when they come due. Many payments also include HOA dues and PMI, so a quoted "principal and interest" figure can understate what actually leaves your bank account each month.
PMI — private mortgage insurance — is added when your down payment is below 20% of the home's value, because the lender views a smaller cushion as higher risk. It protects the lender, not you, and typically runs about 0.3% to 1.5% of the loan per year. The good news is it isn't forever: on a conventional loan you can usually request cancellation once your equity reaches 20%, and it drops off automatically at 22%. Putting 20% down from the start skips PMI entirely, which is why our default scenario shows no PMI charge.
Finally, the term length is a major trade-off. A 30-year loan spreads the balance over 360 payments, so each one is small and easy to budget — but you pay interest for three decades. A 15-year loan roughly doubles the principal portion of each payment yet often comes with a lower rate and can cut your total interest by more than half, building equity much faster. The right choice depends on whether you value the lowest possible monthly payment or the lowest possible lifetime cost.
The formula & how we calculate it
The principal-and-interest part of your payment uses the standard amortizing-loan formula. In plain English: it's the loan amount, multiplied by the monthly interest rate, scaled by a factor that accounts for repaying it over n months. We then add the monthly cost of taxes, insurance, HOA and PMI to reach your full payment.
P = loan amount = home price − down payment
r = monthly interest rate = annual rate ÷ 12 ÷ 100
n = number of months in the term (years × 12)
Full payment = M + tax/12 + insurance/12 + HOA + PMI/12
Worked example (the defaults above):
- $400,000 home − $80,000 down =
Pof $320,000 borrowed. That's exactly 20% down, so PMI = $0. - 6.5% annual rate ÷ 12 = a monthly rate
rof 0.5417% (0.0054167). - Term
n= 30 × 12 = 360 months. - Plug in: M = 320000 × 0.0054167 × (1.0054167)360 ÷ ((1.0054167)360 − 1) ≈ $2,022.62 / month in principal & interest.
- Add property tax $3,600 ÷ 12 = $300 and insurance $1,800 ÷ 12 = $150.
- Full monthly payment ≈ $2,472.62. Over 360 months the P&I alone totals about $728,142, so roughly $408,142 is interest.
If the interest rate were 0% (rare, but possible with some special programs), the principal-and-interest formula simply becomes the loan amount divided by the number of months, since there's no interest to add.
What affects your mortgage payment
- Interest rate. Even a fraction of a percent matters over 30 years. On a $320,000 loan, moving from 6.5% to 7.5% adds well over $200 to the monthly payment and tens of thousands in lifetime interest. Your rate is driven by the market, your credit score, the loan term and your down payment, so shop multiple lenders.
- Down payment. A bigger down payment shrinks the loan dollar-for-dollar, lowers your payment and total interest, can earn a better rate, and — once you hit 20% — removes PMI entirely.
- Loan term. A 30-year term keeps the payment low; a 15-year term raises it but slashes total interest and builds equity far faster. Pick the shortest term whose payment you can comfortably carry.
- Property tax & insurance. These vary widely by location and home value and can add hundreds per month through escrow. High-tax areas can make two identically priced homes cost very differently each month.
- PMI. Putting less than 20% down adds private mortgage insurance until you build enough equity. It's avoidable with a larger down payment or removable once your equity grows.
- Discount points. Paying points up front (1 point = 1% of the loan) buys a lower rate. They can pay off if you keep the loan long enough to recoup the cost, but hurt if you sell or refinance soon.
- HOA dues. Condos and many planned communities charge monthly HOA fees that aren't part of the loan but absolutely affect what you pay to live there.
How your credit score affects your mortgage
Your mortgage rate is heavily driven by your credit score, and on a 30-year loan even a fraction of a percentage point compounds into tens of thousands of dollars. A stronger score can also lower your PMI cost.
It’s the biggest lever you control before you borrow. Learn what a credit score is, how to check yours for free, and how to improve it — then come back and see what a lower rate does to the numbers above.
Glossary
- PITI
- Principal, Interest, Taxes and Insurance — the four core components of a typical monthly mortgage payment. Often expanded to include HOA dues and PMI.
- Escrow
- An account your lender uses to collect and hold one-twelfth of your annual property tax and insurance each month, then pay those bills for you when they're due.
- PMI (Private Mortgage Insurance)
- An extra monthly charge required when your down payment is under 20%. It protects the lender and can be cancelled once you reach about 20% equity.
- Amortization
- Paying off a loan in equal installments, with each payment split between interest and principal. The split shifts toward principal over time.
- LTV (Loan-to-Value)
- The loan amount divided by the home's value. A lower LTV (bigger down payment) usually means a better rate and no PMI.
- Points (Discount Points)
- An optional up-front fee — 1 point equals 1% of the loan — paid to lower your interest rate. Worth it only if you keep the loan long enough to break even.
- APR vs. interest rate
- The interest rate is the cost of borrowing the principal. The APR also folds in certain fees and points, so it reflects the loan's broader cost and is useful for comparing offers.
Frequently asked questions
How much is the monthly payment on a $400,000 mortgage?
It depends on your down payment, rate and term. With $80,000 down (20%) on a $400,000 home you borrow $320,000; at a 6.5% fixed rate over 30 years the principal and interest is about $2,022.62 per month. Add $300 for property tax and $150 for home insurance and the full payment is roughly $2,472.62. Putting less than 20% down raises the loan and adds PMI. Use the calculator above to match your exact numbers.
What is PITI?
PITI stands for Principal, Interest, Taxes and Insurance — the four parts of a typical monthly mortgage payment. Principal and interest repay the loan, while property taxes and homeowners insurance are usually collected into an escrow account and paid for you. Many lenders also add PMI and HOA dues, so your true monthly cost is often higher than the principal-and-interest figure alone.
How much should I put down on a house?
Twenty percent is the classic target because it lets you skip PMI and usually earns a better rate. But many buyers put down less — conventional loans can go as low as 3%, FHA loans 3.5%, and some VA and USDA loans require nothing down. A bigger down payment lowers your loan, payment and total interest, but keep enough cash for closing costs and an emergency fund.
Is a 15-year or 30-year mortgage better?
A 15-year loan has a higher monthly payment but a lower rate and far less total interest, and you own the home outright in half the time. A 30-year loan has a lower, more flexible payment that's easier to qualify for, but you pay much more interest overall. If you can comfortably afford the higher payment, 15 years saves a lot; if you value flexibility and a lower required payment, 30 years wins — and you can always pay extra toward principal on a 30-year loan.
What is PMI and how do I avoid it?
Private mortgage insurance is a fee lenders charge when your down payment is under 20%, since the loan is seen as higher risk. It protects the lender, not you, and typically costs about 0.3% to 1.5% of the loan per year. Avoid it by putting at least 20% down. On conventional loans you can usually request that PMI be cancelled once your equity reaches roughly 20%, and it falls off automatically at 22%.
How is a mortgage payment calculated?
The principal-and-interest portion uses the amortizing-loan formula M = P · r · (1+r)n / ((1+r)n − 1), where P is the loan amount (price − down payment), r is the monthly rate (annual rate ÷ 12) and n is the number of months. We then add one-twelfth of your annual property tax and insurance, any HOA dues, and PMI when your down payment is under 20%. See the worked example and amortization schedule above.
Does property tax get included in my mortgage payment?
Usually, yes. Most lenders collect property taxes and homeowners insurance with your monthly payment and hold the money in an escrow account, then pay those bills for you when they come due. That's why your full payment is higher than principal and interest alone. With a large down payment some lenders let you waive escrow and pay the tax and insurance bills yourself.