Mortgage CalculatorMonthly Payment, Taxes & Amortization

Mortgage payments are calculated using the standard amortization formula:M = P × r(1+r)n / ((1+r)n − 1)where P is the loan amount, r is the monthly interest rate (annual rate ÷ 12), and n is the total number of monthly payments.

That formula gives you principal and interest. Your full monthly payment, often called PITI, also includes property Taxes and homeowners Insurance — and PMI plus HOA if they apply.

• Home price & down payment — together they set your loan amount.
• Interest rate — small rate differences create huge long-term cost differences.
• Loan term — 15-year loans have higher monthly payments but far less total interest than 30-year.
• Property tax & insurance — vary widely by location.
• PMI — required when your down payment is below 20%.
• Extra payments — directly reduce principal and shorten the loan.

Amortization is the process of paying off a loan with regular equal payments. Early on, most of each payment goes to interest. Over time the balance shifts and more goes to principal. The amortization schedule above shows this month-by-month.

An extra $100–$200 per month on a 30-year mortgage can shave 4–7 years off the term and save $40,000–$80,000 in interest, depending on the rate. Because principal payments compound (less balance = less interest charged next month), they are one of the highest-return "investments" most homeowners can make.

Try entering an extra monthly payment above to see exactly how much you'd save on your loan.

A common guideline is the 28/36 rule: housing costs should stay under 28% of your gross monthly income, and total debt payments under 36%. Try our affordability calculator to see your maximum home price, or use the savings goal calculator to plan your down payment.

This free mortgage calculator estimates your full monthly home payment — known as PITI (Principal, Interest, Taxes, Insurance) — plus PMI and HOA when they apply. Enter your home price, down payment, loan term, and interest rate, then optionally fine-tune property tax, homeowners insurance, PMI, HOA dues, and an extra monthly principal payment.

The calculator instantly shows your monthly payment breakdown, total interest over the life of the loan, total cost, payoff time, and a complete month-by-month amortization schedule. It works for any fixed-rate mortgage — 15-year, 20-year, 30-year, FHA, VA, conventional, or jumbo — anywhere in the world.

Paying off a mortgage early can save tens or even hundreds of thousands in interest. Here are the most effective strategies:

• Make one extra payment per year. A single extra full payment annually can shave 4–6 years off a 30-year loan.
• Switch to biweekly payments. Paying half every two weeks results in 26 half-payments — equal to 13 full monthly payments per year.
• Round up every month. Rounding $1,847 up to $2,000 sends $153/month directly to principal with minimal pain.
• Refinance when rates drop. Even a 0.75% lower rate can save thousands per year and accelerate payoff.
• Apply tax refunds and bonuses. Lump-sum principal payments compound their impact across every remaining month.

Use the extra monthly payment field above to see exactly how much interest you'd save and how many years come off your mortgage.

The two most common mortgage terms in the US are 15-year and 30-year fixed loans. Each has a clear trade-off:

• 30-year mortgage — lower monthly payment, easier to qualify for, but you pay roughly 2× more interest over the life of the loan.
• 15-year mortgage — higher monthly payment (~50% more), but typically a lower interest rate and dramatically less total interest. You build equity much faster.
• 20-year mortgage — a middle-ground option that's less common but worth comparing if monthly cash flow allows.

Try changing the loan term in the calculator above to see the monthly payment and total interest difference for your specific home price.

As a rough guide, every $100,000 borrowed at a 30-year fixed rate costs approximately:

• At 5% → about $537/month in principal & interest
• At 6% → about $600/month in principal & interest
• At 7% → about $665/month in principal & interest
• At 8% → about $734/month in principal & interest

Add property tax (typically 1–2% of home value annually), homeowners insurance, PMI (if down payment is below 20%), and HOA dues to get your full monthly payment. The calculator above does this automatically.

PITI is the standard breakdown of a US mortgage payment. Each letter is a real line item that lands in your monthly statement — and skipping any one of them is the #1 reason home shoppers underestimate the true cost of a house.

• P — Principal. The portion of each payment that reduces the loan balance. Tiny at first, larger every year as the loan amortizes.
• I — Interest. Computed monthly on the remaining balance. The largest part of every payment in years 1–10 of a 30-year loan.
• T — Taxes. Property tax assessed by your county, escrowed by the lender and paid on your behalf 1–2× per year. US average is ~1.1% of home value annually.
• I — Insurance. Homeowners insurance protecting the structure and contents. Required by every mortgage lender; nationally ~$1,400–$2,000/year.

Two add-ons usually show up too: PMI if your down payment is under 20%, and HOA dues if you buy in a planned community or condo. Together, PITI + PMI + HOA is sometimes called PITIA, and it's the number the 28/36 rule actually measures against.

Private mortgage insurance (PMI) is what conventional lenders charge when your down payment is under 20%. It protects the lender — not you — if you default. Cost depends on three factors: your credit score, your loan-to-value (LTV) ratio, and the insurer's rate sheet. Typical annual rates run 0.3% to 1.5% of the loan amount, charged monthly.

Here's what PMI typically looks like on a $400,000 home with a 740 credit score at today's average rates:

• 3% down ($12,000): $388,000 loan × ~1.10% PMI = ~$355/month (until 20% equity, often 9–11 years).
• 5% down ($20,000): $380,000 loan × ~0.80% PMI = ~$253/month (until 20% equity, ~8–9 years).
• 10% down ($40,000): $360,000 loan × ~0.50% PMI = ~$150/month (until 20% equity, ~6–7 years).
• 15% down ($60,000): $340,000 loan × ~0.35% PMI = ~$99/month (until 20% equity, ~3–4 years).
• 20% down ($80,000): $320,000 loan, no PMI required at origination.

PMI drops automatically at 78% LTV on the original amortization schedule, and you can request removal at 80% LTV if you're current on payments — both rules come from the federal Homeowners Protection Act. A new appraisal showing improved value can also accelerate removal.

Same home, same rate (6.5% / 30-year fixed), three different down payments. Property tax assumed at 1.1% of value ($367/month) and homeowners insurance at $1,600/year ($133/month).

Going from 5% to 20% down on this same home cuts the monthly payment by ~$630 and the income needed to comfortably afford it by ~$27,000/year. Try other prices with the down payment calculator or jump to our $400K mortgage payment guide for the full breakdown.

Quick definitions for the terms used throughout this calculator and across our mortgage guides.

Amortization

The schedule by which equal monthly payments retire a loan, with interest front-loaded.

APR (Annual Percentage Rate)

The interest rate including most lender fees — a more honest comparison number than the headline rate.

Closing costs

Fees paid at signing (origination, title, appraisal, recording) — typically 2–5% of the loan amount.

DTI (Debt-to-Income)

Monthly debts ÷ gross monthly income. The 28/36 rule sets front-end / back-end DTI ceilings.

Escrow

A holding account where lenders collect monthly amounts for property tax and insurance and pay the bills on your behalf.

FHA loan

Government-insured mortgage with a 3.5% minimum down and MIP. Uses 31/43 DTI ceilings.

HOA dues

Fees paid to a homeowners association for shared amenities and maintenance; required in condos and many planned communities.

LTV (Loan-to-Value)

Loan balance ÷ home value. Determines PMI requirements and refinance eligibility.

MIP

FHA's mortgage insurance premium — 1.75% upfront plus 0.15–0.75% annually; often lasts the life of the loan.

PITI

Principal, Interest, Taxes, Insurance — the four-line breakdown of a standard mortgage payment.

PMI

Private mortgage insurance, required by conventional lenders when down payment is under 20%.

Points (discount points)

Upfront fee (1 point = 1% of loan) paid to permanently buy down the interest rate.

Refinance

Replacing the existing mortgage with a new one — usually for a lower rate, shorter term, or cash-out.

VA loan

Mortgage for eligible service members — 0% down, no PMI, residual-income underwriting.

1. Enter the home price you're considering.
2. Add your down payment as either a dollar amount or a percentage.
3. Choose a loan term — 15, 20, or 30 years are most common.
4. Enter the interest rate from a recent mortgage quote.
5. Adjust property tax, insurance, PMI, and HOA for your area (defaults are reasonable starting points).
6. Optional: add an extra monthly payment to see how much interest and time you'd save.
7. Review the PITI breakdown and amortization schedule below.

• Compare home prices. See exactly how a $350K vs $450K home affects your monthly budget.
• Test different down payments. Check whether 5%, 10%, or 20% down makes the most sense.
• Compare 15-year vs 30-year mortgages. Trade lower interest for higher monthly payments.
• Plan for a refinance. Estimate new payments and break-even point at today's rates.
• Mortgage calculator with extra payments. Model paying $100–$500 extra/month and see years come off the term.
• FHA, VA, or conventional loan estimates. Adjust rate and PMI to match your specific loan program.

• Increase your down payment to 20% — removes PMI and reduces principal at the same time.
• Improve your credit score before locking a rate — a higher score can drop your rate by 0.25–1%.
• Shop at least 3 lenders. Rates and fees vary significantly between banks, brokers, and credit unions.
• Buy mortgage points — paying upfront can permanently lower your interest rate if you'll stay long enough.
• Choose a longer term — a 30-year loan has a lower monthly payment than a 15-year, useful if cash flow is tight.
• Shop homeowners insurance annually — premiums change yearly and switching can save hundreds.

Rate is the single biggest lever on your monthly payment. On a $400,000 loan (30-year fixed, principal & interest only), here's how the payment changes as rates move:

• At 5.0% → ~$2,147/mo · total interest ~$373K
• At 6.0% → ~$2,398/mo · total interest ~$463K
• At 6.5% → ~$2,528/mo · total interest ~$510K
• At 7.0% → ~$2,661/mo · total interest ~$558K
• At 7.5% → ~$2,796/mo · total interest ~$607K
• At 8.0% → ~$2,935/mo · total interest ~$657K

Every 1% drop in rate on a $400K loan saves roughly $250–$280/month and $90,000+ over 30 years. Even a 0.25% improvement — easily achievable by shopping 3 lenders or buying down with points — is worth tens of thousands long-term. See the refinance calculator to model what a future rate drop would save on your specific loan.

Most online calculators (and most lender pre-quotes) understate the real monthly payment. Here are the mistakes that trip up first-time buyers most often:

• Quoting only P&I. Principal & interest is usually 60–75% of the true PITI payment. Adding taxes, insurance, and PMI typically increases the monthly number by 25–40%.
• Forgetting PMI when under 20% down. PMI adds $100–$355/month on a typical $400K home and lasts years. Many calculators silently set PMI to $0.
• Using an outdated interest rate. Rates move daily. A pre-built rate from last quarter can mis-estimate the payment by $200+/month.
• Ignoring HOA dues and special assessments. Condos and planned communities can add $200–$700/month — and lenders count it in your DTI ratio.
• Assuming flat 1% property tax everywhere. Actual rates range from 0.3% (Hawaii) to 2.5% (New Jersey). On a $500K home that's a $9,000/year difference.
• Skipping homeowners insurance. Coastal, fire-risk, and high replacement-cost homes can pay $300–$600/month — well above the national average.
• Forgetting closing costs. 2–5% of the loan amount due at signing. Worth modeling alongside your down payment with the down payment calculator.
• Stretching to the maximum lender approval. Lenders approve at the back-end DTI ceiling (often 43–50%); the 28/36 rule keeps payments actually comfortable.

The mortgage you can get approved for is usually larger than the one you should take. Lenders qualify against the back-end DTI ceiling (43–50% of gross income for conventional loans, up to 56.9% for FHA with compensating factors). Affordability frameworks aim lower so the payment stays comfortable.

• 28/36 rule — housing ≤ 28% of gross income, all debt ≤ 36%. The mainstream conventional benchmark. See our 28/36 rule explainer.
• 25% net rule — keep PITI under 25% of take-home pay. Conservative; good for variable income.
• 3× income rule — borrow no more than 3× gross household income. Quick sanity check for any home price.
• Stress test at +1% rate. If the payment is still comfortable at a rate 1% higher than today's, you have margin for rate locks expiring or future refinance assumptions failing.

Use the affordability calculator to back-solve your maximum comfortable home price from income and existing debts.