Mortgage Payment Calculator
Calculate your full monthly mortgage payment — principal, interest, property taxes, homeowners insurance, HOA, and PMI — all in one place.
This mortgage payment calculator gives you a complete picture of what you'll pay each month — not just principal and interest, but also property taxes, homeowners insurance, HOA dues, and PMI if your down payment is under 20%. Most online calculators show you only the P&I payment, which can be hundreds of dollars less than your actual housing cost. Enter your numbers below to see the real number, the full amortization schedule, and exactly when PMI drops off.
How the Mortgage Payment Calculator Works
Your monthly mortgage payment has two distinct parts: the loan payment and the escrow payment. Most calculators only show you the loan payment. This one shows you both.
The Loan Payment: Principal & Interest (P&I)
The P&I portion uses the standard mortgage amortization formula:
M = P × [r(1 + r)n] ÷ [(1 + r)n − 1]
- M — your fixed monthly P&I payment
- P — loan principal (home price minus down payment)
- r — monthly interest rate (annual rate ÷ 12 ÷ 100)
- n — total number of payments (years × 12)
This formula is designed so that every payment is exactly equal, but the composition shifts over time. In month one, the vast majority of your payment is interest. By the final payment, nearly all of it is principal. This is called amortization.
On a $400,000 loan at 7% for 30 years, your monthly P&I is approximately $2,661. In month one, roughly $2,333 goes to interest and only $328 reduces your balance. By year 20, more than half of each payment goes to principal — the tipping point where you build equity faster than you pay interest.
The Escrow Payment: Taxes, Insurance & PMI
Your lender collects property taxes, homeowners insurance, and PMI monthly and holds them in an escrow account, then pays the bills on your behalf:
- Property Tax: Annual bill ÷ 12. Varies from under $1,000/yr in low-tax states to $10,000+/yr in high-cost areas.
- Homeowners Insurance: Annual premium ÷ 12. National average is $1,200–$2,000/year; coastal and disaster-prone areas run higher.
- HOA Dues: Collected directly by the association, not escrowed. A real monthly cost for condos and planned communities.
- PMI: Required when your down payment is under 20% of the home price. Charged as an annual percentage of your original loan amount divided by 12. Rates typically range from 0.2% to 2.0% depending on credit score and LTV.
When PMI Drops Off
Under the federal Homeowners Protection Act (HPA), lenders must cancel PMI automatically when your loan balance falls to 80% of the home's original purchase price — not its current market value. This calculator computes exactly which month that happens based on your amortization schedule. Once PMI cancels, your monthly payment drops permanently by the PMI amount.
The Amortization Schedule
The chart shows your remaining balance and cumulative interest paid at the end of each year. Notice how slowly your balance falls in the early years — the natural result of a front-loaded interest schedule. This is why extra principal payments in the first decade are so powerful: every dollar reduces your balance, which reduces the interest charged in every future month.
When to Use This Calculator
There are five situations where this calculator is especially useful.
1. Before Making an Offer on a Home
Don't fall in love with a listing before confirming the full monthly payment fits your budget. A $400,000 home with a 7% rate and 10% down might look like a $2,394/month P&I payment — but add $450 in property taxes, $160 in insurance, $200 in HOA, and $150 in PMI, and the real payment exceeds $3,350. That's a $956/month difference not visible in most mortgage calculators.
A common guideline: total housing costs (PITI + HOA) shouldn't exceed 28% of your gross monthly income. Use this calculator to find the home price where that rule holds for your income.
2. Comparing Two Loan Offers
On a $350,000 loan, the difference between 6.75% and 7.25% is about $106/month in P&I — but over 30 years, that's $38,000+ in total interest. Run both scenarios here to see the exact monthly and lifetime difference. Factor in origination fees and points too, which affect your effective rate.
3. The 15-Year vs. 30-Year Decision
A 15-year mortgage almost always carries a lower rate than a 30-year (typically 0.5–0.75% lower), and you'll pay dramatically less interest over the life of the loan — often less than half. But the monthly payment is 40–50% higher. Use this calculator to compare both scenarios for your specific loan amount and quoted rates.
4. Planning to Remove PMI
If you're buying with less than 20% down, understanding your PMI timeline changes your financial planning. This calculator shows you exactly which month PMI drops off. Some buyers accelerate PMI cancellation with extra principal payments — you can estimate the impact by reducing the loan amount in the calculator. Once PMI cancels, the freed-up cash can go toward retirement savings or additional home equity.
5. Refinancing Analysis
Enter your current remaining loan balance as the home price, set down payment to $0, and enter the new rate you've been quoted. This gives you the new payment to compare against your current one. To calculate the break-even on closing costs, divide total closing costs by the monthly savings — if you plan to stay longer than that many months, refinancing likely makes financial sense.
Understanding the Inputs
- Home Price
- The full purchase price of the home you're buying, before your down payment. This number establishes the loan-to-value ratio (LTV) that determines whether PMI applies and when it will cancel. If you're refinancing, enter your home's current appraised value here.
- Down Payment
- The amount of cash you're putting toward the purchase, as a dollar amount or percentage of the home price. At 20% or more, you avoid PMI entirely. At less than 20%, PMI is required. The calculator keeps the dollar and percentage values in sync — change either one.
- Annual Interest Rate
- Your quoted mortgage interest rate as a percentage — not the APR, which includes fees and is always higher. Rates move daily with the bond market. On a $400,000 loan, a 0.25% rate difference is about $65/month and over $23,000 in total interest over 30 years.
- Loan Term
- The number of years over which you repay the loan. Common terms are 30 years (lower payment, more total interest) and 15 years (higher payment, significantly less interest). A 30-year at 7% vs. a 15-year at 6.25% on a $350,000 loan is roughly $674/month more — but saves about $298,000 in total interest.
- Annual Property Tax
- Your estimated annual property tax bill in dollars. This varies enormously by location — from under $500/year in some rural counties to over $20,000/year in high-cost metro areas. Check the county assessor's website for the specific property. If you don't have a number yet, 1–1.5% of the home price is a reasonable estimate for most U.S. markets.
- Annual Homeowners Insurance
- Your estimated annual homeowners insurance premium. The national average is approximately $1,400–$2,000/year for a standard policy. Coastal properties, homes in wildfire zones, and older homes can cost significantly more. Your lender will require proof of insurance before closing. Use $1,500/year as a placeholder if you haven't gotten quotes.
- Monthly HOA Dues
- Homeowners association fees, if applicable — common for condos, townhomes, and planned communities. HOA dues cover shared expenses like landscaping, building maintenance, and reserves. Enter 0 if the property has no HOA. Amounts range from $50/month for small communities to $1,000+/month for luxury high-rises.
- PMI Rate (annual % of loan)
- Private mortgage insurance rate, shown only when your down payment is below 20%. Your actual PMI rate depends on your credit score, loan-to-value ratio, and lender. Borrowers with 760+ credit and 15% down typically pay 0.2–0.5%. Lower scores or higher LTVs can reach 1.0–2.0%. Your lender quotes the exact rate on the Loan Estimate document.
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The FinCalc Team
Personal Finance Experts
The FinCalc team is a group of personal finance writers, analysts, and engineers dedicated to building accurate, transparent financial calculators. Every formula is verified against industry standards and explained in plain language.
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