# Mortgage Calculator

URL: https://hifreetools.com/finance/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.

## 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

- M = L × i ÷ (1 − (1 + i)^−n), L = price − down payment, i = APR ÷ 12, n = term × 12
- Monthly total = M + property tax ÷ 12 + insurance ÷ 12 + PMI + HOA
- PMI = L × PMI rate ÷ 12, only when the down payment is under 20%; it stops once the balance reaches 80% of the price
- An extra monthly payment goes to principal; savings are compared with the same loan without it

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.

## Inputs

- Home price (0 to 10000000000); default 400000
- Down payment (0 to 10000000000); default 80000
- Loan term (years) — one of: 30 years, 25 years, 20 years, 15 years, 10 years; default 30
- Interest rate (% APR) (0 to 100); default 6.5
- Property tax (per year) (0 to 100000000); default 4800
- Home insurance (per year) (0 to 100000000); default 1800
- PMI rate (% per year) (0 to 10); default 0.5
- HOA (per month) (0 to 1000000); default 0
- Extra monthly payment (optional) (0 to 1000000000); default 0

## Worked examples (computed by the page's own function)

- Home price = 400000, Down payment = 80000, Loan term (years) = 30, Interest rate (% APR) = 6.5, Property tax (per year) = 4800, Home insurance (per year) = 1800, PMI rate (% per year) = 0.5, HOA (per month) = 0, Extra monthly payment (optional) = 0 → Estimated monthly payment = 2572.62, Principal & interest = 2022.62, Property tax = 400, Home insurance = 150  (320000 × 0.005416666666666667 ÷ (1 − (1 + 0.005416666666666667)^−360) = 2022.62)
- Home price = 400000, Down payment = 40000, Loan term (years) = 30, Interest rate (% APR) = 6.5, Property tax (per year) = 4800, Home insurance (per year) = 1800, PMI rate (% per year) = 0.5, HOA (per month) = 0, Extra monthly payment (optional) = 0 → Estimated monthly payment = 2975.44, Principal & interest = 2275.44, Property tax = 400, Home insurance = 150  (360000 × 0.005416666666666667 ÷ (1 − (1 + 0.005416666666666667)^−360) = 2275.44)
- Home price = 400000, Down payment = 80000, Loan term (years) = 30, Interest rate (% APR) = 6.5, Property tax (per year) = 4800, Home insurance (per year) = 1800, PMI rate (% per year) = 0.5, HOA (per month) = 0, Extra monthly payment (optional) = 200 → Estimated monthly payment = 2572.62, Principal & interest = 2022.62, Property tax = 400, Home insurance = 150  (320000 × 0.005416666666666667 ÷ (1 − (1 + 0.005416666666666667)^−360) = 2022.62)

## Verification

Checked against 19 reference cases (expected values computed independently). Reviewed 2026-10-27. Latest change 2026-10-28: Moved to the schema finance renderer with a sourced ledger; tax, insurance, PMI, HOA and extra payments kept; out-of-range input or a down payment at or above the price now shows an error.

## FAQ

**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

- [Wikipedia — Mortgage calculator](https://en.wikipedia.org/wiki/Mortgage_calculator)
- [Wikipedia — Amortization calculator](https://en.wikipedia.org/wiki/Amortization_calculator)
- [Wikipedia — Lenders mortgage insurance (PMI)](https://en.wikipedia.org/wiki/Lenders_mortgage_insurance)
- [eCFR — 12 CFR Part 1026 (Regulation Z, Truth in Lending)](https://www.ecfr.gov/current/title-12/chapter-X/part-1026)

Runs in the browser; nothing is uploaded. Cite as: HIFreeTools, "Mortgage Calculator", https://hifreetools.com/finance/mortgage-calculator