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Finance & Loans

Mortgage Calculator

Monthly mortgage payment with principal, interest, property tax, insurance, PMI and HOA, plus total interest.

Updated:

Result

Monthly payment

$2,480.95

Principal & interest
$2,022.62
Property tax
$333.33
Homeowners insurance
$125.00
Loan amount (80% of price)
$320,000.00
Total interest (360 payments)
$408,142.36
Fixed-rate estimate. Taxes, insurance and PMI vary by lender and location; this is not a loan offer.

Down payment in

The note rate your lender quotes (not the APR).

Loan term
Property tax as

Rates vary widely by state and county; check your county assessor.

How it's calculated

A fixed-rate mortgage is repaid in equal monthly installments of principal and interest. Early payments are mostly interest; as the balance falls, more of each payment goes to principal. Property tax, homeowners insurance, private mortgage insurance (PMI, usually when you put down less than 20%) and HOA dues are added to get the monthly cost of owning the home.

Loan
= home price − down payment
P&I
= loan × r(1 + r)^n / ((1 + r)^n − 1), r = rate / 12, n = years × 12
Monthly payment
= P&I + property tax / 12 + insurance / 12 + PMI + HOA
PMI
= loan × PMI rate / 12, while the balance is above 78–80% of the price

Worked example

A $400,000.00 home with 20% down, 6.5% for 30 years, 1% property tax and $1,500.00 a year of insurance:

  1. Loan: $400,000.00 − $80,000.00 = $320,000.00
  2. Principal and interest: $2,022.62 a month
  3. Tax $333.33 + insurance $125.00 → $2,480.95 a month; $408,142.36 of interest over 30 years

Amortization and payment tables

Amortization by year

$320,000.00 at 6.5% for 30 years: principal and interest paid each year and the balance at year end
YearPrincipalInterestBalance
Year: 1Principal$3,576.72Interest$20,694.69Balance$316,423.28
Year: 2Principal$3,816.26Interest$20,455.15Balance$312,607.02
Year: 3Principal$4,071.84Interest$20,199.57Balance$308,535.17
Year: 4Principal$4,344.54Interest$19,926.87Balance$304,190.63
Year: 5Principal$4,635.50Interest$19,635.91Balance$299,555.13
Year: 10Principal$6,410.06Interest$17,861.36Balance$271,283.60
Year: 15Principal$8,863.94Interest$15,407.48Balance$232,189.25
Year: 20Principal$12,257.20Interest$12,014.21Balance$178,128.90
Year: 25Principal$16,949.47Interest$7,321.94Balance$103,373.32
Year: 30Principal$23,438.03Interest$833.39Balance$0.00

Monthly principal and interest per $100,000

Monthly principal and interest for each $100,000 borrowed, by rate and term
Rate15 years30 years
Rate: 5%15 years$790.7930 years$536.82
Rate: 5.5%15 years$817.0830 years$567.79
Rate: 6%15 years$843.8630 years$599.55
Rate: 6.5%15 years$871.1130 years$632.07
Rate: 7%15 years$898.8330 years$665.30
Rate: 7.5%15 years$927.0130 years$699.21
Rate: 8%15 years$955.6530 years$733.76

Frequently asked questions

How is a mortgage payment calculated?

Principal and interest use the standard amortization formula: payment = loan × r(1 + r)^n / ((1 + r)^n − 1), where r is the annual rate divided by 12 and n the number of monthly payments. A $320,000.00 loan at 6.5% for 30 years costs $2,022.62 a month; property tax, insurance, PMI and HOA dues are added on top.

What is PITI?

Principal, interest, taxes and insurance: the four parts of a typical monthly housing payment when the lender collects property tax and homeowners insurance through an escrow account. In the example, $2,022.62 of principal and interest plus $333.33 tax and $125.00 insurance make $2,480.95 a month.

When does PMI go away?

For most loans on a single-family principal residence closed on or after July 29, 1999, you can ask the servicer to cancel PMI once your balance is scheduled to reach 80% of the home's original value, and the servicer must end it automatically at 78%, or the month after the loan's midpoint at the latest, if your payments are current (CFPB). With 10% down on a $400,000.00 home at 6.5% for 30 years, that is after 7 years 11 months (request) and 9 years 1 month (automatic).

Should I choose a 15-year or a 30-year mortgage?

A 15-year loan has a higher monthly payment but far less interest. At the same 6.5% rate, $320,000.00 costs $2,022.62 a month over 30 years ($408,142.36 interest) and $2,787.54 over 15 years ($181,757.84 interest). Lenders often quote a lower rate for 15 years, which widens the gap.

How much do extra payments save?

Extra principal shortens the loan and cuts interest, because interest is charged on the remaining balance. Paying $200.00 more each month on the $320,000.00 loan above pays it off in about 23 years 5 months and saves roughly $105,429.55 of interest. Check with your servicer that extra money goes to principal.

How much is the monthly payment per $100,000?

Principal and interest per $100,000.00 are $599.55 at 6% and $665.30 at 7% over 30 years, and $843.86 and $898.83 over 15 years. Multiply by your loan size in hundreds of thousands for a quick estimate.

Sources

Estimate for a fixed-rate loan. Property tax, insurance, PMI and HOA dues vary by location and lender, and closing costs are not included. This is not a loan offer or financial advice.