Mortgage Payment Calculator
Calculate your full monthly mortgage payment including principal, interest, property tax, insurance, HOA dues and PMI — not just the loan portion everyone else shows.
20.0% of the price
The payment most calculators don’t show you
Ask a lender what your mortgage will cost and you will usually hear a number covering principal and interest only. That figure is real, but it is not what leaves your account each month.
A US mortgage payment normally bundles four or five things together:
- Principal and interest — repaying the loan itself.
- Property tax — collected monthly into escrow, then paid to your county.
- Homeowners insurance — also usually escrowed.
- PMI — private mortgage insurance, required while your equity is under 20%.
- HOA dues — if your property is in an association.
This calculator includes all of them, which is why its answer is often several hundred dollars higher than the quote you started with — and closer to what you will actually pay.
How amortization works
Every payment splits between interest and principal. Early on, most of it is interest, because interest is charged on a large remaining balance. As the balance falls, more of each fixed payment goes to principal. The proportion shifts continuously, which is why the total interest on a 30-year loan is so much larger than on a 15-year loan at the same rate.
The total interest figure in the results is the number worth paying attention to. Changing the rate by half a percentage point, or the term by five years, moves it dramatically.
Using this to decide what you can afford
Work backwards. Decide the total monthly payment you are comfortable with, then adjust the home price until the result matches. That gives you a realistic price ceiling including tax and insurance — rather than a loan figure you would then have to add unknown costs to.
Remember that property tax and insurance vary enormously by location. The defaults here are placeholders; replace them with real quotes for the area you are actually buying in.
How this is calculated
Loan amount = home price − down payment Monthly rate (r) = annual rate ÷ 12 Number of months(n)= term in years × 12 Principal+interest = loan × r ÷ (1 − (1 + r)^−n) PMI = loan × PMI rate ÷ 12 (only while equity is under 20%) Total monthly = principal+interest + tax/12 + insurance/12 + HOA + PMI
Frequently asked questions
- Why is my payment higher than a lender's quoted figure?
- Lenders usually quote principal and interest only. Your real monthly outlay also includes property tax, homeowners insurance, PMI if your down payment was under 20%, and HOA dues if your property has them. Together these often add 25-40% on top of the loan payment.
- When does PMI stop?
- On a conventional loan, private mortgage insurance can typically be canceled once you reach 20% equity, and lenders must remove it automatically at 22% equity based on the original amortization schedule. FHA loans follow different rules and the premium often lasts the life of the loan.
- Does a shorter loan term really save money?
- Yes, substantially. A 15-year term carries a higher monthly payment but far less total interest, because you are borrowing the money for half as long. Compare the "total interest" figure at 15 and 30 years to see the difference for your own numbers.
- What counts as a good down payment?
- 20% is the threshold that avoids PMI on a conventional loan, which is why it is the number people aim for. Smaller down payments are widely available and sometimes the right choice, but they raise both your loan balance and your monthly cost.