Mortgage Calculator
Estimate your monthly mortgage payment from the loan amount, interest rate, and term, then see exactly how each payment splits between principal and interest over the life of the loan.
This calculator uses the standard amortization formula lenders use, and lets you layer in property taxes, homeowners insurance, and PMI to get a true PITI payment — the number that actually hits your bank account each month.
Taxes, insurance & PMI (optional)
Estimated monthly payment
$2,572.62
- Principal & interest
- $2,022.62
- Property tax
- $400.00
- Homeowners insurance
- $150.00
- Loan amount
- $320,000
- Total interest paid
- $408,142
- Total of payments
- $728,142
Amortization schedule (yearly)
| Year | Principal paid | Interest paid | Remaining balance |
|---|---|---|---|
| 1 | $3,577 | $20,695 | $316,423 |
| 2 | $3,816 | $20,455 | $312,607 |
| 3 | $4,072 | $20,200 | $308,535 |
| 4 | $4,345 | $19,927 | $304,191 |
| 5 | $4,636 | $19,636 | $299,555 |
| 6 | $4,946 | $19,325 | $294,609 |
| 7 | $5,277 | $18,994 | $289,332 |
| 8 | $5,631 | $18,641 | $283,701 |
| 9 | $6,008 | $18,264 | $277,694 |
| 10 | $6,410 | $17,861 | $271,284 |
| 11 | $6,839 | $17,432 | $264,444 |
| 12 | $7,297 | $16,974 | $257,147 |
| 13 | $7,786 | $16,485 | $249,361 |
| 14 | $8,308 | $15,964 | $241,053 |
| 15 | $8,864 | $15,407 | $232,189 |
| 16 | $9,458 | $14,814 | $222,732 |
| 17 | $10,091 | $14,180 | $212,641 |
| 18 | $10,767 | $13,505 | $201,874 |
| 19 | $11,488 | $12,784 | $190,386 |
| 20 | $12,257 | $12,014 | $178,129 |
| 21 | $13,078 | $11,193 | $165,051 |
| 22 | $13,954 | $10,317 | $151,097 |
| 23 | $14,888 | $9,383 | $136,208 |
| 24 | $15,886 | $8,386 | $120,323 |
| 25 | $16,949 | $7,322 | $103,373 |
| 26 | $18,085 | $6,187 | $85,289 |
| 27 | $19,296 | $4,976 | $65,993 |
| 28 | $20,588 | $3,683 | $45,405 |
| 29 | $21,967 | $2,305 | $23,438 |
| 30 | $23,438 | $833 | $0 |
Calculation Formulas
P is the loan amount (home price − down payment), r is the monthly interest rate (annual APR ÷ 12), and n is the total number of monthly payments (years × 12). This yields the fixed principal-and-interest payment.
Example:
A $320,000 loan at 6.5% for 30 years: r = 0.0054167, n = 360 → M ≈ $2,023 per month in principal and interest.
Lenders escrow taxes and insurance, so your actual monthly payment adds one-twelfth of each annual cost to the principal-and-interest figure. PMI applies until you reach 20% equity.
Every payment over the full term, minus the amount you originally borrowed, is the lifetime interest cost — the number that reveals the true price of the loan.
Key Figures
| Figure | Value | Description |
|---|---|---|
| PMI removal threshold | 20% equity (80% LTV) | Point at which PMI can typically be cancelled on a conventional loan. |
| Automatic PMI termination | 22% equity (78% LTV) | Lender must remove PMI automatically per the Homeowners Protection Act. |
| 28/36 rule | 28% / 36% | Guideline caps: housing payment ≤ 28% of gross income; total debt ≤ 36%. |
Note: Results are estimates for planning purposes. Rates, fees, taxes, and insurance vary by lender and location — confirm exact figures with a licensed professional before making financial decisions.
Standards & Sources
Last verified: July 2026
- Homeowners Protection Act (HPA) of 1998
Governs when private mortgage insurance can be requested for cancellation (20% equity) and when it must be automatically terminated (22% equity) on conventional loans.
- CFPB "Ability-to-Repay" / 28-36 guidance
Consumer Financial Protection Bureau debt-to-income guidance widely used by lenders to gauge affordability.
How to Use This Calculator
- Enter the home price and your down payment — the loan amount updates automatically.
- Enter the annual interest rate (APR) your lender quoted and choose the loan term (commonly 30 or 15 years).
- Optionally add annual property tax, homeowners insurance, and PMI to see your full monthly PITI payment.
- Read your estimated monthly payment, total interest paid, and the payoff date, then scroll for the year-by-year amortization schedule.
Frequently Asked Questions
What is included in a monthly mortgage payment?
A full mortgage payment (PITI) has four parts: principal, interest, property taxes, and homeowners insurance. If your down payment is under 20%, lenders usually add private mortgage insurance (PMI) until you reach 20% equity.
How is my monthly mortgage payment calculated?
The principal-and-interest portion 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 (annual rate ÷ 12), and n is the number of payments (years × 12). Taxes, insurance, and PMI are added on top.
How much house can I afford?
A common guideline is the 28/36 rule: keep your total housing payment at or below 28% of gross monthly income, and all debt payments at or below 36%. Enter different home prices here to see which payment fits that range for your income.
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 lowers the monthly payment but costs more over time. Run both terms in this calculator and compare the "total interest paid" figures.
When can I stop paying PMI?
On most conventional loans, PMI can be cancelled once you reach 20% equity (an 80% loan-to-value ratio), and lenders must automatically remove it at 22% equity based on the original amortization schedule.
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