Last updated: May 2026
Estimate your monthly payment including principal, interest, taxes, insurance and HOA fees.
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| Year | Principal | Interest | Balance |
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Monthly P&I: Uses the standard amortization formula: M = P[r(1+r)^n] / [(1+r)^n–1], where P = loan amount, r = monthly interest rate, n = total number of payments.
Total monthly payment adds monthly property tax (annual ÷ 12), monthly insurance (annual ÷ 12), and HOA fee on top of P&I.
Loan-to-Value (LTV) = Loan Amount ÷ Home Price × 100. LTV above 80% typically triggers PMI requirements.
Amortization table shows how each year's payments are split between reducing principal and paying interest. Early payments are mostly interest; later payments shift toward principal.
⚠️ This calculator provides estimates for planning purposes only. Actual mortgage payments depend on your lender's terms, credit score, property location, and other factors. Consult a licensed mortgage professional before making financial decisions.
This calculator uses the standard principal-and-interest amortization formula to compute your fixed monthly payment. The core formula is:
Where M is the monthly payment, P is the loan principal (home price minus down payment), r is the monthly interest rate (annual rate divided by 12), and n is the total number of payments (loan term in years times 12).
Worked example: A $400,000 home with 20% down ($80,000) leaves a $320,000 loan. At 6.75% for 30 years: r = 0.005625, n = 360. The monthly P&I payment comes to $2,076. Add estimated taxes ($400), insurance ($120), and PMI if applicable for the full PITI payment.
The amortization table shows how each payment splits between interest and principal. In year one, roughly 87% of each payment goes to interest. By year 25, that flips and most of each payment reduces the principal balance.
A full mortgage payment includes four components, often abbreviated as PITI: Principal (reducing the loan balance), Interest (cost of borrowing), Taxes (property taxes, usually escrowed), and Insurance (homeowner's insurance, plus PMI if your down payment is under 20%). This calculator shows P&I only; add your estimated taxes and insurance for the full monthly cost.
Every additional dollar of down payment reduces your loan principal, directly lowering your monthly P&I. A 20% down payment also eliminates PMI, which typically costs 0.5-1.5% of the loan amount annually. On a $400,000 home, going from 10% to 20% down saves roughly $130-$200/month in combined P&I and PMI costs.
A 15-year mortgage has higher monthly payments but you pay dramatically less interest over the life of the loan - often 50-60% less total interest. A 30-year mortgage has lower monthly payments, giving you more cash flow flexibility. Use the term field in this calculator to compare both scenarios side by side.
Private Mortgage Insurance automatically cancels when your loan balance reaches 78% of the original purchase price, per the Homeowners Protection Act. You can also request cancellation once you reach 80% LTV through a combination of payments and home appreciation. Contact your lender to initiate an early cancellation request.
This calculator provides a precise P&I estimate using the standard amortization formula. Your actual payment may differ slightly due to lender-specific rounding, escrow adjustments, or prepaid interest at closing. Always confirm your final payment amount with your lender's official Loan Estimate document.
Your interest rate has a bigger impact on your total cost than almost any other factor in the home-buying process. Even a half-point difference compounds dramatically over 30 years — the table below shows just how much rate shopping is worth.
A 15-year mortgage always carries a lower rate than a 30-year loan (typically 0.5–0.75% less), and the shorter payoff window means dramatically less total interest. The trade-off is a higher required monthly payment, which affects how much home you can qualify for.
| Interest Rate | 15-Year Payment | 30-Year Payment | Total Interest (30yr) |
|---|---|---|---|
| 5.0% | $3,163 | $2,147 | $373,023 |
| 6.0% | $3,375 | $2,398 | $463,353 |
| 6.5% | $3,485 | $2,528 | $510,177 |
| 7.0% | $3,595 | $2,661 | $558,036 |
| 7.5% | $3,708 | $2,797 | $606,857 |
| 8.0% | $3,822 | $2,935 | $656,507 |
How is a mortgage payment calculated?
Your principal and interest payment is calculated using 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 monthly payments. Each payment stays constant but the split between interest and principal shifts over time — early payments are mostly interest, while later payments are mostly principal.
What is included in a mortgage payment?
A full mortgage payment typically includes four components known as PITI: Principal (reduces your loan balance), Interest (the cost of borrowing), Taxes (property taxes collected in escrow), and Insurance (homeowner's insurance, plus PMI if your down payment is under 20%). This calculator computes P&I only — add your local tax and insurance estimates to get your true monthly housing cost.
What is PMI and when can I remove it?
Private Mortgage Insurance protects the lender if you default and is required when your down payment is less than 20% of the purchase price. PMI typically costs 0.5–1.5% of the loan amount annually. Under the Homeowners Protection Act, your lender must automatically cancel PMI when your loan balance reaches 78% of the original purchase price. You can also request cancellation once you reach 80% LTV — either through payments alone or through a combination of payments and documented home value appreciation.
Should I choose a 15-year or 30-year mortgage?
Choose a 15-year mortgage if you can comfortably afford the higher payment and want to minimize total interest paid — you'll typically save 50–60% in interest and own your home free and clear in half the time. Choose a 30-year mortgage if cash flow flexibility matters more, if you have high-interest debt to pay off, or if you plan to invest the monthly difference. Many financial advisors recommend a 30-year loan with voluntary extra payments, giving you the low required payment of a 30-year with the option to pay it off faster.
How does one extra payment per year affect my mortgage?
Making one additional full principal-and-interest payment per year is one of the most cost-effective mortgage hacks available. On a typical 30-year mortgage, this strategy shortens the payoff term by 4–6 years and saves tens of thousands in interest — all without refinancing costs. The easiest method is to divide your monthly payment by 12 and add that amount to each monthly payment, effectively making 13 payments per year rather than 12.