Mortgage Payment Calculator
Estimate your full monthly housing payment: principal and interest, property tax, insurance, HOA and PMI.
Standard fixed-rate amortization formula; PMI is an estimate. Last reviewed October 4, 2026. Sources · Methodology
Show year-by-year amortization schedule
| Year | Principal | Interest | Balance |
|---|
How the mortgage payment is calculated
The principal and interest part of the payment comes from the standard fixed-rate loan formula:
M = P × r(1 + r)n ÷ ((1 + r)n − 1)
Here P is the loan amount (home price minus down payment), r is the monthly interest rate (annual rate ÷ 12) and n is the number of monthly payments. Property tax and insurance are annual costs divided by 12, HOA dues are added as entered, and PMI is added when the down payment is under 20%.
Worked example: $400,000 home, 20% down, 6.5% for 30 years
- Loan amount: $400,000 − $80,000 = $320,000
- Principal and interest: $2,022.62 a month
- Property tax ($4,800 a year): $400.00 a month
- Homeowners insurance ($1,500 a year): $125.00 a month
- Total monthly payment: $2,547.62
- Interest over the life of the loan: $408,142
With 10% down instead, the loan grows to $360,000 and estimated PMI adds about $225.00 a month, bringing the payment to $3,025.44.
30-year vs 15-year on the same loan
| Term | Principal & interest | Total interest |
|---|---|---|
| 30 years | $2,022.62 | $408,142 |
| 15 years | $2,787.54 | $181,758 |
The shorter term costs $765 more each month and saves $226,385 in interest.
How the balance falls over time
Early payments are mostly interest. In the example above, year 1 pays $20,695 in interest and only $3,577 toward the balance. By year 20 the split is $12,014 interest and $12,257 principal. Open the amortization schedule under the calculator to see every year for your own numbers.
What extra principal payments save
Any amount paid above the scheduled payment goes straight to the balance, so less interest is charged every month afterwards. On the $320,000 loan above:
| Extra per month | Paid off in | Time saved | Interest saved |
|---|---|---|---|
| $100 | 26.2 years | 3.8 years | $61,698 |
| $250 | 22.3 years | 7.8 years | $122,994 |
| $500 | 18 years | 12 years | $185,552 |
Enter an amount in "Extra Principal Each Month" to see this for your own loan; the amortization schedule updates to match. Before paying extra, check that your lender applies it to principal and charges no prepayment penalty.
What this estimate leaves out
- Closing costs and prepaid items due at signing.
- Changes in tax and insurance. Both are reassessed over time, so the escrow part of your payment will move.
- Adjustable rates. The formula assumes one fixed rate for the whole term.
- FHA, VA and USDA loans, which have their own mortgage insurance or funding fees instead of PMI.
Frequently asked questions
What is included in a monthly mortgage payment?
Most payments have four parts, often called PITI: principal, interest, property taxes and homeowners insurance. HOA dues and private mortgage insurance (PMI) are added when they apply.
When do I have to pay PMI?
Lenders usually require private mortgage insurance on a conventional loan when the down payment is under 20% of the home price. You can ask for it to be removed once your balance reaches 80% of the home's original value, and it normally ends automatically at 78%.
How much does PMI cost?
It varies with your credit score, down payment and loan type. This calculator uses 0.75% of the loan amount per year as a middle-of-the-road estimate. Your lender's quote may be noticeably lower or higher.
Is a 15-year mortgage better than a 30-year mortgage?
A 15-year loan has a higher monthly payment but far less total interest, and usually a lower rate. A 30-year loan keeps the payment lower and leaves more room in your budget. The right choice depends on what payment you can sustain comfortably.
How much does an extra $100 a month save on a mortgage?
It depends on the balance, rate and how early you start. On a $320,000 loan at 6.5% for 30 years, an extra $100 a month from the first payment ends the loan about 3 years and 10 months early. Enter your own numbers in the extra principal field to see your result.
Does this include closing costs?
No. Closing costs, typically a few percent of the loan, are paid at signing and are not part of the monthly payment shown here.
Sources
- Consumer Financial Protection Bureau: what is private mortgage insurance?
- Consumer Financial Protection Bureau: when can I remove PMI from my loan?
- Consumer Financial Protection Bureau: buying a house
Last reviewed October 4, 2026. Results are estimates; see our methodology and disclaimer.