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Mortgage Calculator
Your monthly mortgage payment is M = P·i/(1−(1+i)^−n) for principal and interest, plus tax, insurance and PMI. Enter a price, down payment, rate and term for the full PITI payment, the amortization schedule, total interest, and the month PMI drops off.
Your home & loan
The purchase price of the home
$
$40,000 down · 10.0% of the price
%
The annual mortgage rate your lender quotes
%
Years to repay — 30 and 15 are the common choices
years
Taxes, insurance & fees
$366.67 a month
%
Homeowners insurance premium, per year
$
Annual PMI, as a percent of the loan — charged only under 20% down
%
Applies at 10.0% down · $150.00/mo
Homeowners-association or condo dues, per month
$
Optional — anything above the payment shortens the loan
$
Monthly payment · 30y
$2,942.11
$360,000 loan · 10% down · 90% LTV
P&I $2,275Tax $367Ins $150PMI $150
Principal & interest
$2,275
Property tax / mo
$367
Home insurance / mo
$150
PMI / mo
$150
Loan amount
$360,000
Total interest
$459,160
PMI drops off
Your balance reaches 80% of the price at payment 95 (7 years 11 months), when the payment falls to $2,792.11. You will have paid about $14,250 in PMI by then.
Estimate only. Your actual rate, tax, insurance and PMI depend on your lender, credit and location.
Try a scenario
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The basics
What goes into a mortgage payment?
A mortgage payment is not one number but four bundled together — principal, interest, taxes and insurance, or PITI. Two ideas explain the whole thing.
M = P·i ÷ (1 − (1 + i)^−n)
Principal and interest repay the loan
The amortizing part. The payment M is fixed for the life of the loan, but its split shifts — early payments are mostly interest on a large balance, later ones almost all principal. Nothing floats, so the last payment is known the day you sign.
$360,000 at 6.50% over 30 years → $2,275.44 a month
tax + insurance + PMI + HOA
Escrow covers everything else
Property tax and homeowners insurance are collected monthly and paid on your behalf. PMI rides along until you have 20% equity; HOA dues, if any, are separate. Together they can add hundreds to the bare loan payment.
Here $366.67 tax + $150.00 insurance + $150.00 PMI = $666.67 a month
Method
How to calculate a mortgage payment by hand
Five steps take you from a purchase price to the number that actually leaves your account each month.
- 1
Find the loan amount
Subtract the down payment from the price. The result P is what you actually borrow — and the down payment as a share of the price decides whether you pay PMI.
$400,000 − $40,000 = $360,000 borrowed - 2
Convert the annual rate to a monthly rate
Divide the annual rate by twelve for the periodic rate i, and multiply the term in years by twelve for the number of payments n.
i = 6.50% ÷ 12 = 0.00541667 · n = 30 × 12 = 360 - 3
Apply the level-payment formula
The payment M is the one figure that repays the balance to exactly zero on the last month. This is the principal-and-interest part only.
M = P·i ÷ (1 − (1 + i)^−n) = $2,275.44 - 4
Add the escrow items
Property tax and insurance are annual figures — divide each by twelve. PMI is a yearly percent of the loan while the down payment is under 20%. Add HOA dues if any.
tax $366.67 + ins $150.00 + PMI $150.00 = $666.67 - 5
Sum to the full PITI payment
Principal and interest plus escrow is the number that actually leaves your account each month. Once the balance hits 80% of the price, PMI drops and the payment falls.
$2,275.44 + $666.67 = $2,942.11
Worked examples
The same loan over 30, 20, 15 and 10 years
$320,000 borrowed at 6.50% with 20% down. A shorter term raises the payment but slashes the interest — the total cost of the house falls sharply.
| Term | Principal & interest | Total interest | Total of payments |
|---|---|---|---|
| 30 years | $2,022.62 | $408,142 | $728,142 |
| 20 years | $2,385.83 | $252,600 | $572,600 |
| 15 years | $2,787.54 | $181,758 | $501,758 |
| 10 years | $3,633.54 | $116,024 | $436,024 |
The 15-year payment is $2,787.54 against $2,022.62 for the 30-year — $764.93 more a month — but it saves $226,385 of interest.
Where it shows up
Why the number matters
Three moments where the monthly payment is the figure that actually decides things.
the 28% rule
How much house you can afford
The payment, not the price, is what a lender tests against your income. Knowing the full PITI tells you whether a price is realistic before you make an offer.
Lenders like housing costs under ~28% of gross income
rent vs buy
Comparing to rent
A fair rent-versus-buy comparison uses the whole payment — tax and insurance included — plus maintenance, not the stripped-down loan figure.
Compare PITI, not just P&I, against the rent you pay now
refinance math
Deciding to refinance
When rates move, the question is how much the monthly payment falls and how long it takes the saving to cover the closing costs.
A new payment vs the old one drives the break-even
Reference
How the down payment changes the loan
General guidance, not a rate quote. The down payment sets the loan size, whether PMI applies, and how the lender prices the risk. Twenty percent is the line that matters.
| Down payment | Loan on $400,000 | PMI | What it means |
|---|---|---|---|
| 3% — conventional floor | $388,000 | Yes, highest | The lowest a conventional loan usually allows. PMI is charged and the rate is priced up for the risk. |
| 5% — common first-time | $380,000 | Yes | A frequent starting point. PMI still applies, but it is cheaper than at 3% and drops off sooner. |
| 10% — halfway | $360,000 | Yes, lower | PMI is modest and the balance reaches the 80% line quickly, so the extra cost is short-lived. |
| 20% — the PMI line | $320,000 | None | The threshold at which PMI disappears entirely. Below it you pay PMI; at or above it you never do. |
| 25% and up | $300,000 | None | No PMI, the strongest pricing tier, and the smallest loan — the least interest paid over the life of it. |
Worth knowing
Six things that move the payment
None of these are in the headline rate, and each can be worth more than it looks.
20% down removes PMI
The PMI cliff
Below 20% down you pay PMI until the balance reaches 80% of the price; at 20% you never do. Getting just over the line, or reaching it faster with extra payments, is real money.
points buy a lower rate
Discount points
Paying points up front cuts the rate. Whether it pays off depends on how long you keep the loan — the longer you stay, the more a point is worth.
escrow can change
Taxes and insurance drift
The tax and insurance parts are estimates that reset as assessments and premiums change, so an escrowed payment can rise even on a fixed-rate loan.
extra principal is front-loaded
Overpaying early is worth most
A 30-year loan is heavily interest-weighted at the start, so an extra payment in year one removes far more interest than the same payment in year twenty.
APR vs rate
Compare the APR
The APR folds lender fees into the rate, so it is the figure that makes two offers comparable. A low rate with high fees can lose to a higher rate with none.
rate locks expire
Lock the rate
A quoted rate is only good for a set window. If your closing slips past it, the rate can move — ask how long the lock lasts and what an extension costs.
Quick chart
Principal & interest, by rate and term
Pick a loan amount and read the monthly principal and interest at every rate from 3.0% to 8.0% across four terms. Add your tax, insurance and PMI on top for the full payment.
Loan amount
Show
Monthly payment on $350,000, by rate and term.
| Rate | 30 years | 20 years | 15 years | 10 years |
|---|---|---|---|---|
| 3.00% | $1,476 | $1,941 | $2,417 | $3,380 |
| 3.50% | $1,572 | $2,030 | $2,502 | $3,461 |
| 4.00% | $1,671 | $2,121 | $2,589 | $3,544 |
| 4.50% | $1,773 | $2,214 | $2,677 | $3,627 |
| 5.00% | $1,879 | $2,310 | $2,768 | $3,712 |
| 5.50% | $1,987 | $2,408 | $2,860 | $3,798 |
| 6.00% | $2,098 | $2,508 | $2,953 | $3,886 |
| 6.50% | $2,212 | $2,610 | $3,049 | $3,974 |
| 7.00% | $2,329 | $2,714 | $3,146 | $4,064 |
| 7.50% | $2,447 | $2,820 | $3,245 | $4,155 |
| 8.00% | $2,568 | $2,928 | $3,345 | $4,246 |
Principal and interest only — excludes property tax, insurance, PMI and HOA. Use the calculator above to add the escrow items for the full monthly payment.
How we calculate this
The formula and our assumptions
Principal and interest use the standard amortizing-loan formula; the escrow items are added on top. We show the working so you can check it.
M = P·i ÷ (1 − (1 + i)^−n)
Principal and interest
P is the loan amount, i the annual rate divided by twelve, and n the number of monthly payments. When the rate is zero the payment is simply P divided by n.
PITI = P&I + tax + ins + PMI + HOA
The full payment
Property tax and insurance are annual amounts divided by twelve. PMI is a yearly percent of the loan while the down payment is under 20%, dropped when the balance reaches 80% of the original price. HOA dues are added as entered.
- Rates are fixed for the life of the loan; adjustable-rate loans are not modelled.
- PMI cancels when the loan balance first reaches 80% of the purchase price.
- Property tax and insurance are held constant; in reality both drift over time.
- Extra payments are applied straight to principal in the month they are made.
Where to get a mortgage
Where to shop for the loan
Rows are ordered by borrower fit, not by any payout — the type that suits your situation comes first for you, whatever that is. Rates are shown as ranges only; get an exact quote from the lender, because pricing depends on your credit, the property and the day.
| Where | Examples | Best for | Typical pricing |
|---|---|---|---|
| Online marketplace | LendingTree, Credible | Comparing several lenders from one form | Market range |
| Direct lender / bank | Rocket, Chase, local banks | An existing banking relationship | Market range |
| Credit union | Member-owned lenders | Lower fees, member pricing | Often below market |
| Mortgage broker | Independent brokers | Complex files, self-employed | Market range |
CalculateThis.io is not a lender and does not make credit decisions. When we add lender links they will be marked as sponsored, and we may earn a commission if you apply through one — it does not change the rate you are offered.
Sources
Where the method comes from
- Consumer Financial Protection Bureau — mortgage basics, escrow and PMI cancellation rules.
- Homeowners Protection Act (HPA) — the 80% request and 78% automatic PMI cancellation thresholds.
- Standard amortization formula for a fixed-rate, fully amortizing loan.
FAQ
Common questions
The principal-and-interest part uses M = P·i ÷ (1 − (1 + i)^−n), where P is the loan amount, i is the annual rate ÷ 12, and n is the number of monthly payments. On a $360,000 loan at 6.50% over 30 years that is $2,275.44 a month. A full mortgage payment then adds property tax, homeowners insurance, PMI and any HOA on top — here $2,942.11 in total. That bundled figure is called PITI: principal, interest, taxes and insurance.
PITI stands for principal, interest, taxes and insurance — the four things a normal mortgage payment covers. Principal and interest repay the loan; taxes and insurance are collected into an escrow account and paid out on your behalf. Many payments also carry PMI and HOA dues. On the $400,000 example, the $2,275.44 of principal and interest is joined by $366.67 of tax, $150.00 of insurance and $150.00 of PMI for a $2,942.11 total.
It depends on the down payment, the rate and the term. With 10% down ($360,000 borrowed) at 6.50% over 30 years, principal and interest are $2,275.44 and the full payment with tax, insurance and PMI is about $2,942.11. Put 20% down and PMI disappears, dropping the full payment to about $2,539.28. The quick chart on this page gives the principal and interest for every rate and term.
Conventional loans go as low as 3% down, and FHA loans as low as 3.5%, so a $400,000 home can be bought with as little as $12,000 down. The catch is PMI: any down payment under 20% adds private mortgage insurance until the balance falls to 80% of the price. Twenty percent — $80,000 here — is the line at which PMI never applies. A bigger down payment also shrinks the loan and the interest you pay over its life.
PMI — private mortgage insurance — protects the lender, not you, and is charged whenever the down payment is under 20%. It is a fraction of a percent of the loan each year: on the $360,000 example at 0.50% it is $150.00 a month. You can request cancellation once the balance reaches 80% of the original price — payment 95, about 7 years 11 months in, on this example, and the lender must drop it automatically at 78%. By then this loan would have paid roughly $14,250 in PMI.
A 15-year loan carries a higher payment but far less interest. On $320,000 at 6.50%, the 30-year principal and interest is $2,022.62 against $2,787.54 for the 15-year — but the 15-year pays $181,758 of interest versus $408,142, a saving of $226,385. Choose the 30-year for the lower payment and the flexibility to overpay, or the 15-year if the higher payment fits and you want to be debt-free sooner.
Usually, yes. Most lenders require an escrow account that collects one-twelfth of the annual property tax and homeowners insurance with every payment, then pays those bills when they fall due. That is why the payment your lender quotes is larger than the principal-and-interest figure a bare loan calculator shows. This calculator includes both so the number matches what actually leaves your account.
Every extra dollar goes straight to principal, so the balance — and the interest charged on it — falls faster. Because a 30-year loan is heavily front-loaded with interest, overpaying early is worth the most. Even a modest extra payment can cut years off the term and remove tens of thousands in interest. Enter an extra amount in the calculator to see the new payoff date and the interest saved on your own numbers.
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Ugo CharlesBuilt and fact-checked against our editorial standards · Last updated June 2026
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