What's included in the monthly payment this calculator shows?

Principal & interest (P&I), property tax (estimated monthly), homeowner's insurance (monthly), PMI if your down payment is under 20%, and any HOA fee you enter. The P&I is the contractual mortgage payment; the rest are estimates that vary by location and provider.

Put at least 20% down. If you're under 20%, PMI is removed once you reach 20% equity — you'll typically need to request removal from your lender; it won't happen automatically. Some lenders offer piggyback loans (80/10/10) to avoid PMI with less than 20% down.

Is a 15-year or 30-year mortgage better?

A 15-year mortgage has a higher monthly payment but dramatically less total interest — often half as much. A 30-year gives lower payments and more cash flow flexibility. The right choice depends on your income stability, other financial goals, and how long you plan to stay. Use this calculator: plug in both terms and compare total interest paid.

How accurate are the property tax and insurance estimates?

Property tax varies enormously by county — the same $400,000 house can have annual taxes of $2,000 in one state and $8,000 in another. Always enter your specific county's rate. National average home insurance is roughly $1,200–$1,800/year for a median-priced home, but varies widely by location, age, and coverage.

What's a safe mortgage payment as a percentage of income?

Lenders cap the front-end DTI (housing costs ÷ gross income) at 28% for conventional mortgages. But 28% is a lender maximum, not a comfort target — many financial planners recommend keeping housing at 20–25% of gross income to leave room for retirement savings, emergencies, and life changes.

How do extra principal payments affect the loan?

Extra principal payments directly reduce your loan balance, which reduces the interest calculated on all future payments. Even $100–$200/month extra can shorten a 30-year loan by 4–6 years and save $30,000–$60,000 in total interest. The amortization schedule shows your new payoff date when you factor in extra payments.

🏦Borrowing

Mortgage Calculator – Monthly Payment with Taxes & PMI

Can you afford this home?

What This Does

A mortgage is likely the largest financial commitment you'll ever make — and the number a lender quotes you (principal + interest) is never the number you'll actually pay each month. This calculator gives you the full picture: principal, interest, property taxes, homeowner's insurance, PMI if your down payment is under 20%, and any HOA fees. That's your real housing payment. Most first-time buyers are surprised by the gap. On a $400,000 home with 10% down at 7%, the P&I payment is $2,394/month. Add $400/month in property taxes, $120 in insurance, and $175 in PMI and you're at $3,089 — nearly 30% higher than the headline number. Use this before making an offer, when comparing home prices, and when deciding whether to put 20% down to eliminate PMI. The amortization schedule shows how each payment splits between interest and principal — in the first year of a 30-year mortgage at 7%, over 80% of every payment is interest. That context changes how you think about extra principal payments and loan term choices. This tool is also essential for refinancing decisions: swap in the new rate and term to see whether the monthly savings justify the closing costs and how long the break-even takes.

Assumptions

·Assumes a fixed interest rate for the full loan term (not an adjustable-rate mortgage)
·Property tax is calculated as an annual percentage of the purchase price, divided by 12
·PMI is estimated at 0.5–1.0% of the loan amount annually; actual rate varies by lender and credit score
·Does not account for tax deductibility of mortgage interest (consult a tax advisor)
·Closing costs are not included in the payment estimate

How It's Calculated

Monthly P&I uses the standard amortization formula: M = P × [r(1+r)^n] / [(1+r)^n – 1] Where: M = monthly payment · P = loan principal (purchase price minus down payment) · r = monthly interest rate (annual rate ÷ 12) · n = total payments (term in years × 12). Example: $360,000 loan at 7% over 30 years → r = 0.005833, n = 360 → M = $2,395/month P&I. Total monthly payment = P&I + (annual property tax ÷ 12) + (annual insurance ÷ 12) + PMI (if down < 20%) + HOA. PMI is typically 0.5%–1.0% of the loan amount per year, required until you reach 20% equity.

When Should You Use This?

→Before making an offer — know your true monthly obligation, not just P&I
→Comparing a 15-year vs. 30-year mortgage — see the total interest difference side by side
→Deciding whether to put 20% down to eliminate PMI vs. invest the difference
→Evaluating a refinance — plug in the new rate to see actual monthly savings and break-even
→Stress-testing your budget: what happens if your income drops 15%?

Worked Examples

Example 1: First-time buyer with 10% down

Inputs: Home: $375,000 · Down: $37,500 (10%) · Loan: $337,500 · Rate: 7.0% · Term: 30 yr · Tax: 1.2%/yr · Insurance: $1,440/yr · PMI: 0.7%

Result: P&I: $2,246 · Tax: $375 · Insurance: $120 · PMI: $197 · Total: $2,938/month · Total interest (30 yr): $471,000

The real payment is 31% higher than the P&I alone. The $197/month PMI disappears once you reach 20% equity — roughly 9 years at minimum payments — freeing up cash to redirect toward principal or savings.

Example 2: 20% down to eliminate PMI

Inputs: Home: $375,000 · Down: $75,000 (20%) · Loan: $300,000 · Rate: 7.0% · Term: 30 yr · Tax: 1.2%/yr · Insurance: $1,440/yr

Result: P&I: $1,996 · Tax: $375 · Insurance: $120 · PMI: $0 · Total: $2,491/month · Total interest: $418,560

The extra $37,500 down saves $197/month in PMI and $52,440 in total interest. The break-even on the additional down payment via PMI savings alone is about 16 years — but the lower payment also improves your debt-to-income ratio for future borrowing.

🏠 Mortgage Calculator

Monthly Payment · PITI Breakdown · Amortization · Rate & Term Scenarios

Results update in real time. Includes principal, interest, taxes, insurance, PMI, and HOA.

Home Price

Down Payment

Interest Rate

Loan Term

Property Tax Rate

Annual Home Insurance

PMI Rate

Only applies if down payment < 20%

Monthly HOA Fee

Gross Monthly Income

For affordability ratio

About This Calculator

This mortgage calculator computes monthly payment and amortization in real time from 9 inputs. Formula: monthlyPI = loan × (r × (1+r)^n) / ((1+r)^n − 1) where r = rate/12, n = term×12. Monthly PITI = PI + (price × taxRate/100)/12 + insurance/12 + PMI (if down < 20%) + HOA. Full amortization schedule: month i, interest = balance × r, principal = payment − interest, balance = max(0, prev − principal). Affordability score (0-100): housing ratio component (max 40pts, 28% threshold) + down payment component (max 35pts, 20% threshold) + rate component (max 25pts). Tiers: Comfortably Affordable (75+), Affordable (55+), Borderline (38+), Stretching (25+), Overextended. Equity assumes 3%/yr appreciation. All 9 inputs update in real time.

The Overview tab renders a donut PieChart of PITI components (P&I in tier accent, tax amber, insurance indigo, PMI red, HOA violet) with side legend showing % and $/mo, then a dual AreaChart of home equity (solid tier accent, gradient fill) vs remaining balance (dashed indigo) over the loan term assuming 3% annual appreciation, then 4 key insights (affordability summary, total interest + rate/term alternatives, PMI analysis, rate sensitivity). The Breakdown tab renders a BarChart of monthly payment at 5 interest rates (±2%, current highlighted in tier accent, lower rates green, higher rates red, LabelList top labels, ReferenceLine at current payment) then a down payment scenarios table (6 rows: 3.5-25%). The Scenarios tab renders a BarChart of monthly payment at 4 loan terms (15/20/25/30-yr, current highlighted, Legend) plus rate and term comparison tables with vs-yours column. The Schedule tab shows year-by-year amortization with show-all toggle.

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Common Mistakes to Avoid

✕Budgeting only for P&I and being blindsided by taxes, insurance, and PMI at closing — the real payment is often 20–35% higher
✕Assuming PMI cancels automatically — you typically must request removal from your lender once you hit 20% equity
✕Ignoring HOA fees when comparing homes in different neighborhoods — they can add $200–$800/month
✕Using the lender's pre-approval amount as your budget target rather than as a ceiling
✕Not shopping for homeowner's insurance — rates vary by 40%+ for identical coverage in the same ZIP code

Frequently Asked Questions