About the Mortgage Calculator
Your monthly mortgage payment is more than principal and interest. Most lenders collect PITI – principal, interest, property taxes and homeowners insurance – through an escrow account, and conventional loans with less than 20% down add private mortgage insurance (PMI). This calculator adds all of them, plus HOA dues, so you see the payment you will actually make, and shows when PMI drops off and how the balance falls year by year.
How to use
- Enter the home price and your down payment; the percentage down is shown below the field.
- Enter the interest rate and loan term (30 or 15 years for most fixed-rate loans).
- Add the property tax rate for your county, your homeowners insurance premium and any HOA dues. PMI is added automatically when you put down less than 20%.
- Review the monthly breakdown, total interest and the yearly amortization schedule.
How the payment is calculated
Principal and interest = P × r × (1+r)n ÷ ((1+r)n − 1), with loan amount P, monthly rate r = rate ÷ 12 and n monthly payments.
Example: a $400,000 home with 10% down ($40,000) and a $360,000 30-year loan at 6.5%:
| Principal & interest | $2,275.44 |
| Property tax (1.1% a year) | $366.67 |
| Homeowners insurance ($1,800 a year) | $150.00 |
| PMI (0.5% of the loan a year) | $150.00 |
| Total monthly payment | $2,942.11 |
Total interest over 30 years is $459,164. PMI ends automatically after 109 months, when the balance reaches 78% of the original price.
When does PMI go away?
Under the Homeowners Protection Act, PMI on a conventional loan ends automatically when the balance is scheduled to reach 78% of the home’s original value, and you can ask to cancel it at 80% if you are current on payments. Extra principal payments get you there sooner. FHA loans use a mortgage insurance premium (MIP) instead, which usually lasts 11 years or the life of the loan depending on the down payment.
15-year vs. 30-year mortgage
A 15-year loan has a higher payment but usually a lower rate and far less interest. For the same $360,000 at 6.5%, a 15-year term costs $3,135.99 a month and about $204,477 in interest versus $459,164 over 30 years. Enter both terms above to compare with your own numbers.
FAQ
What is PITI?
Principal, interest, taxes and insurance – the four parts of a typical mortgage payment. Lenders use PITI (plus HOA dues and PMI) when they calculate your debt-to-income ratio.
How much is property tax?
Effective rates range from about 0.3% of home value in Hawaii to over 2% in New Jersey and Illinois; the US average is about 1%. Check your county assessor’s website for the exact rate.
How can I avoid PMI?
Put at least 20% down, use a piggyback loan, or look into VA loans (no monthly mortgage insurance) and lender-paid PMI. On an existing loan, request cancellation once you reach 80% loan-to-value.
Does this include closing costs?
No. Closing costs of roughly 2–5% of the price are paid upfront and don’t change the monthly payment unless you roll them into the loan.