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Free Mortgage Calculator

Estimate the complete monthly cost of a home loan — not just principal and interest, but property tax, home insurance, PMI and HOA — and see a full amortization schedule. Add an extra monthly payment to see how much interest and time you save.

Applied only if the down payment is under 20%; auto-cancels at 80% loan-to-value.

Estimated monthly payment
2,572.62
Principal & interest
2,022.62
Property tax
400.00
Home insurance
150.00
Loan amount
320,000.00
Total interest
408,142.36
Total of payments (P&I)
728,142.36
Payoff time
30 yr 0 mo

Estimate only — excludes closing costs, escrow changes, and tax/insurance increases over time.

Loan balance over time

0125k250k375k500k051015202530Year
Balance remainingY-axis = balance owed, ending at 0.

Yearly amortization schedule

YearPrincipalInterestBalance
13,576.7220,694.69316,423.28
23,816.2620,455.15312,607.02
34,071.8420,199.57308,535.17
44,344.5419,926.87304,190.63
54,635.5019,635.91299,555.13
64,945.9519,325.46294,609.18
75,277.1918,994.22289,331.98
85,630.6218,640.80283,701.37
96,007.7118,263.70277,693.66
106,410.0617,861.36271,283.60
116,839.3517,432.06264,444.26
127,297.3916,974.02257,146.86
137,786.1116,485.30249,360.75
148,307.5615,963.85241,053.19
158,863.9415,407.48232,189.25
169,457.5714,813.84222,731.68
1710,090.9614,180.45212,640.72
1810,766.7713,504.64201,873.95
1911,487.8412,783.57190,386.11
2012,257.2012,014.21178,128.90
2113,078.0911,193.32165,050.81
2213,953.9610,317.46151,096.86
2314,888.489,382.93136,208.38
2415,885.598,385.83120,322.79
2516,949.477,321.94103,373.32
2618,084.616,186.8085,288.71
2719,295.774,975.6465,992.94
2820,588.053,683.3745,404.89
2921,966.862,304.5523,438.03
3023,438.03833.390.00

Estimate only. This calculator provides estimates based on the values you enter and the formula shown. It is not financial advice and may not reflect every fee, tax, or lender requirement. Check figures with a qualified professional before making financial decisions.

Quick answer

Your monthly principal-and-interest payment is M = P × r(1 + r)^n ÷ [(1 + r)^n − 1], where P is the loan amount (home price minus down payment), r is the monthly interest rate (annual rate ÷ 12), and n is the number of monthly payments (years × 12). Lenders then add property tax, home insurance, PMI (if your down payment is under 20%) and any HOA dues to get the full monthly payment.

Formula & method

Monthly principal & interest

M = P × r(1 + r)^n ÷ [(1 + r)^n − 1]
  • M — monthly principal & interest payment
  • P — loan amount = home price − down payment
  • r — monthly interest rate = annual rate ÷ 12
  • n — number of payments = loan term in years × 12

The full monthly payment adds property tax ÷ 12, insurance ÷ 12, PMI, and HOA. PMI typically applies when the down payment is under 20% and is removed once the balance reaches 80% of the home's value.

The calculator first finds the loan amount (home price minus down payment) and the monthly principal-and-interest payment using the standard amortization formula. It then builds a month-by-month schedule: each month the interest portion is the remaining balance times the monthly rate, and the rest of the payment (plus any extra payment) reduces the balance. PMI is included while the down payment is under 20% and automatically removed once the balance falls to 80% of the home price. Property tax, insurance and HOA are added to show the realistic total monthly payment. Everything is computed in your browser.

Monthly principal & interest per $100,000 borrowed (30-year fixed)

Interest rateMonthly P&I per $100,000
5%$536.82
6%$599.55
7%$665.30
8%$733.76

Examples

Example 1: $400,000 home, 20% down, 30-year at 6.5%
Input
Loan $320,000, 360 months, 6.5% APR
Result
≈ $2,022.62 principal & interest
Why
320,000 × 0.0054167 × (1.0054167)^360 ÷ ((1.0054167)^360 − 1) ≈ 2,022.62. Adding $400 tax and $150 insurance per month gives about $2,573 total; no PMI because the down payment is 20%.
Example 2: $300,000 loan, 30-year at 6.5%
Input
Loan $300,000, 360 months, 6.5% APR
Result
≈ $1,896.20 principal & interest
Why
Total interest over 30 years is about $382,633 — more than the amount borrowed, which is why extra payments save so much.
Example 3: 5% down triggers PMI
Input
$300,000 home, $15,000 down, PMI 0.5%/yr
Result
≈ $118.75/month PMI until 80% LTV
Why
On a $285,000 loan, 0.5% per year is 285,000 × 0.005 ÷ 12 = $118.75 a month, which stops once the balance reaches $240,000 (80% of the home's value).

When to use this tool

  • Estimating the full monthly cost of a home before you shop or make an offer.
  • Comparing loan terms (15 vs 30 years) or interest rates side by side.
  • Seeing how much interest and time an extra monthly payment would save.

Common mistakes

  • Looking only at principal and interest. Property tax, insurance, PMI and HOA can add hundreds of dollars to the real monthly payment.
  • Forgetting PMI. A down payment under 20% usually adds private mortgage insurance until you reach 20% equity.
  • Assuming taxes and insurance never change. They typically rise over time, so an escrow payment is an estimate, not a fixed amount.
  • Entering the APR as a monthly rate. Enter the annual rate; the tool divides by 12 for you.

Frequently asked questions

What's included in a monthly mortgage payment?

Four to five parts, often called PITI: principal, interest, property taxes and homeowners insurance, plus PMI if your down payment is under 20% and HOA dues if your home has them. This calculator shows each part separately.

How much do I need for a down payment?

Putting down 20% lets you avoid PMI, but many loans allow far less (some as low as 3%). A smaller down payment means a larger loan, a higher monthly payment, and usually PMI until you reach 20% equity.

What is PMI and when does it stop?

Private mortgage insurance protects the lender when your down payment is under 20%. It's added to your monthly payment and is typically removed automatically once the loan balance reaches 78–80% of the home's original value.

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

A 15-year loan has higher monthly payments but a lower rate and far less total interest. A 30-year loan has lower payments but costs much more interest over time. Use the term dropdown to compare both.

How much does an extra payment save?

Because early payments are mostly interest, paying extra toward principal can save tens of thousands of dollars and shave years off the loan. Enter an extra monthly amount to see the exact interest and time saved for your numbers.

Is this calculator's result a loan offer?

No. It's an estimate to help you plan. Actual payments depend on your lender, credit, exact tax and insurance amounts, escrow rules, and closing costs. Always confirm figures with a licensed lender.

Sources & references

External references open in a new tab. We are independent and not affiliated with these organizations.

Disclaimer

This calculator provides estimates based on the values you enter and the formula shown. It is not financial advice and may not reflect every fee, tax, or lender requirement. Check figures with a qualified professional before making financial decisions.

  • ✓ Free to use
  • ✓ No sign-up required
  • ✓ Runs entirely in your browser — nothing is uploaded.
  • ✓ Formula and method shown above
Last updated: How we calculateReport a correctionDisclaimer

Provided “as is” for general information only — results may be inaccurate, so verify before you rely on them. No warranty; use at your own risk.

Built and reviewed by HIFreeTools against the formula shown above and any authoritative references cited on this page. See our methodology and editorial standards.

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