Mortgage Calculator
Calculate monthly mortgage payments with property tax, insurance, PMI, and HOA fees. See detailed amortization schedule and total home ownership costs over 15 or 30 years.
Loan Details
Advanced Options
Monthly Payment Breakdown
Payment Distribution
Loan Summary
Amortization Schedule
| Year | Interest Paid | Principal Paid | Ending Balance |
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How to Use This Calculator
Our mortgage calculator helps you estimate your total monthly housing costs, including principal, interest, property taxes, insurance, PMI, and HOA fees. This comprehensive tool gives you a complete picture of what homeownership will actually cost each month, helping you make informed decisions about your budget and loan options.
Step-by-Step Instructions:
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1.
Enter Basic Information: Input your home price, down payment (as a percentage or dollar amount), loan term (10-30 years), and current interest rate.
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Add Advanced Options (Optional): Click "Advanced Options" to include property tax rate, annual home insurance premium, and monthly HOA fees for a more accurate estimate.
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Review Your Results: See your total monthly payment, payment breakdown by category, visual pie chart distribution, and loan summary with total interest costs.
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Explore Amortization Schedule: Click on "Amortization Schedule" to see a year-by-year breakdown of how much interest and principal you'll pay, and how your loan balance decreases over time.
Real-World Use Cases:
1. First-Time Home Buying
You're looking at a $350,000 home and have saved $30,000 for a down payment (8.5%). Calculate whether the monthly payment fits your budget, including PMI since you're putting down less than 20%.
What to check: Total monthly payment should be ≤28% of your gross monthly income (lender's rule of thumb).
2. Refinancing Decision
You currently have a 30-year mortgage at 7.5% interest with $280,000 remaining. Interest rates have dropped to 6.0%. Compare your current payment vs. refinanced payment to see if refinancing makes sense.
What to check: Will the monthly savings offset refinancing closing costs (typically 2-5% of loan amount) within 2-3 years?
3. Investment Property Analysis
You're considering buying a rental property for $250,000. Calculate the total monthly costs to ensure rental income will cover your mortgage payment plus maintenance and vacancy reserves.
What to check: Monthly rent should be at least 1.5x total monthly payment (PITI+H) to maintain positive cash flow and cover unexpected expenses.
4. Home Affordability Check
You earn $85,000/year ($7,083/month gross). Use the 28% rule to determine the maximum home price you can afford. Work backwards: 28% of $7,083 = $1,983 max monthly payment.
What to check: Adjust the home price slider until your total monthly payment is around $1,983 to find your maximum affordable home price.
5. Comparing Loan Terms (15-Year vs 30-Year)
You can afford either a higher monthly payment on a 15-year mortgage or a lower payment on a 30-year. Compare both scenarios to see the dramatic difference in total interest paid.
What to check: 15-year mortgages typically save 50-60% on total interest costs but have 40-50% higher monthly payments. Check the amortization schedule to see equity building speed.
Understanding Your Results
- Total Monthly Payment: Your complete housing payment including principal, interest, taxes, insurance, PMI, and HOA fees (often called PITI+H)
- Mortgage Payment (P&I): Only the principal and interest portion of your payment that goes to the lender
- PMI: Private Mortgage Insurance is automatically calculated if your down payment is less than 20%. This typically adds 0.5%-1% of the loan amount annually
- Total Interest: The amount you'll pay in interest over the life of the loan - often more than the original loan amount on 30-year mortgages
- Total of Payments: The sum of all monthly mortgage payments (principal + interest) over the loan term
Pro Tips:
- Aim for 20% down: Avoids PMI and gets you better interest rates, but many loan programs allow as little as 3% down
- Consider the total payment: Property taxes and insurance can add 30-50% to your monthly payment
- Compare 15 vs 30 year: 15-year mortgages have higher payments but you'll pay significantly less interest and build equity faster
- Factor in maintenance: Budget an additional 1-2% of your home's value annually for repairs and maintenance
- Get pre-approved: Knowing your actual interest rate helps you budget accurately and shows sellers you're serious
Important Notes:
- PMI removal: PMI can typically be removed once you reach 20% equity, reducing your monthly payment
- Property tax varies: Rates range from 0.3% to 2.5% annually depending on your state and county
- Interest rate matters: A 1% rate difference on a $300K loan = ~$200/month difference in payment
- Escrow accounts: Most lenders require you to pay property tax and insurance monthly into an escrow account
- Extra payments: Making extra principal payments early in the loan can save tens of thousands in interest
Frequently Asked Questions
What is a mortgage calculator and how does it work?
A mortgage calculator helps you estimate your monthly home loan payments. It calculates principal and interest based on the home price, down payment, loan term, and interest rate. Our calculator also includes property taxes, homeowners insurance, PMI (Private Mortgage Insurance), and HOA fees to show your true total monthly payment. The calculation uses the standard amortization formula: M = P × [r(1+r)^n] / [(1+r)^n - 1], where P is the loan amount, r is the monthly interest rate, and n is the number of monthly payments.
How much down payment do I need for a mortgage?
Conventional mortgages typically require 20% down to avoid PMI, but you can put down as little as 3% with certain loan programs. FHA loans require 3.5% down, VA loans offer 0% down for veterans, and USDA loans offer 0% down for rural properties. A larger down payment reduces your loan amount, monthly payments, and total interest paid. If you put down less than 20%, you'll pay PMI (Private Mortgage Insurance) which typically costs 0.5%-1% of the loan amount annually until you reach 20% equity.
What is PMI and when do I need it?
PMI (Private Mortgage Insurance) is required when your down payment is less than 20% of the home price. It protects the lender if you default on the loan. PMI typically costs 0.5%-1% of the loan amount per year, adding $50-$100+ to your monthly payment on a $200,000 loan. You can request PMI removal once you reach 20% equity through payments or home appreciation. FHA loans have MIP (Mortgage Insurance Premium) which works similarly but may last the life of the loan depending on your down payment and loan terms.
Should I choose a 15-year or 30-year mortgage?
15-year mortgages have higher monthly payments but lower interest rates (typically 0.5% lower) and you'll save significantly on total interest paid - often $100,000+ on a $300,000 loan. 30-year mortgages have lower monthly payments, providing more cash flow flexibility, but you'll pay substantially more interest over time. Choose 15-year if you can afford higher payments and want to build equity faster. Choose 30-year if you need lower payments or want to invest the difference. You can always pay extra on a 30-year loan without committing to higher required payments.
What are property taxes and how are they calculated?
Property taxes are annual taxes assessed by local governments based on your home's value. The average effective property tax rate in the US is 1.1%, but varies widely by state - from 0.3% in Hawaii to 2.5% in New Jersey. For a $400,000 home at 1.2%, you'd pay $4,800/year or $400/month. Property taxes fund schools, roads, police, and local services. Your lender typically collects 1/12 of your annual property tax each month in an escrow account and pays the tax bill on your behalf when due. Check your county's tax assessor website for local rates.
How can I pay off my mortgage faster?
Make extra principal payments - even $100/month extra can shave years off a 30-year mortgage and save tens of thousands in interest. Make bi-weekly payments (26 half-payments = 13 full payments per year instead of 12). Round up your payment (pay $1,100 instead of $1,088). Make one extra payment per year using your tax refund or bonus. Refinance to a shorter term or lower rate. Apply windfalls (inheritance, bonuses) to principal. Our calculator lets you see the impact of extra payments on your payoff timeline and interest savings.