Finance
Mortgage Calculator
Estimate mortgage payments with tax, insurance, PMI, HOA, and extra principal.
Result
Enter your numbers and press Calculate to see the result.
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How the mortgage payment is calculated
Your total monthly payment is more than the loan itself. This calculator combines the principal-and-interest payment from the standard amortization formula with monthly escrow costs — property tax, home insurance, and PMI — plus any HOA dues and optional extra principal payments.
Formulas
Loan amount = home price − down payment
P&I = P × r(1 + r)ⁿ ÷ ((1 + r)ⁿ − 1)
PMI = loan × PMI% ÷ 12, only while down payment is below 20%
Escrow / monthly extras = annual tax ÷ 12 + annual insurance ÷ 12 + HOA + PMI
Total monthly = P&I + tax/insurance/HOA/PMI + extra principal
Worked example
A $350,000 home with 20% down ($70,000), 6.5% rate, 30 years, $3,600/yr tax and $1,200/yr insurance:
- Loan amount: $280,000
- Principal & interest: ≈ $1,769.79/month
- Escrow: (3,600 + 1,200) ÷ 12 = $400/month
- Total: ≈ $2,169.79 per month.
With a down payment under 20%, lenders typically add PMI — at 0.5% annually, a $280,000 loan would add about $117 per month until you reach 20% equity.
What moves your monthly payment the most
- Interest rate — on a $280,000 loan, each 1% of rate changes principal and interest by roughly $180/month, so shopping lenders and locking a good rate matters more than almost anything else.
- Term — a 15-year mortgage has higher monthly payments than a 30-year one but can cut total interest by more than half, because you borrow the money for half as long.
- Down payment — reaching 20% down removes PMI and shrinks the loan, lowering the payment twice over.
- Taxes and insurance — these vary widely by location and can add several hundred dollars a month on top of principal and interest, so always include them when you compare homes.
How much house can you afford?
A common guideline is the 28/36 rule: keep total housing costs at or below 28% of your gross monthly income, and all debt payments (housing plus car loans, student loans, and credit cards) at or below 36%. Enter a home price that keeps the total monthly figure inside those limits, then adjust the down payment and term until the payment fits your budget comfortably — lenders approve a maximum, but that is rarely the amount you should borrow.
For a loan without escrow — a car loan or personal loan — use the loan payment calculator.
Mortgage Calculator — frequently asked questions
What does the monthly mortgage payment include?
It combines principal and interest from the standard amortization formula with monthly escrow — property tax, home insurance, and PMI divided by 12 — plus any HOA dues and extra principal you choose to pay.
What is PMI and when do I pay it?
Private mortgage insurance is typically required when your down payment is below 20% of the home price. It is charged as an annual percentage of the loan amount and usually drops off once you reach about 20% equity.
How does the down payment change my payment?
A larger down payment shrinks the loan amount, which lowers both the principal-and-interest portion and any PMI. Putting 20% down on a $350,000 home means borrowing $280,000 instead of the full price.
How do extra principal payments help?
Every extra dollar reduces the balance that interest is charged on. Even $100 extra per month on a 30-year loan typically cuts several years off the payoff and saves tens of thousands in interest.