Mortgage Calculator
Estimate your monthly mortgage payment with property taxes, insurance, HOA, and PMI. See your full amortization schedule and how much interest you'll pay over the life of the loan.
20.0% down
Monthly Payment
Balance vs Interest Over Time
Amortization Schedule
Year-by-year breakdown| Year | Payment | Principal | Interest | Balance |
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How Mortgage Payments Work
Your monthly mortgage payment typically includes several components, often referred to as PITI: Principal, Interest, Taxes, and Insurance. Some loans also require PMI (Private Mortgage Insurance) or include HOA fees.
The principal and interest portion is calculated using the standard amortization formula:
M = P × [r(1+r)ⁿ] / [(1+r)ⁿ − 1]
Where M is the monthly payment, P is the loan amount (home price minus down payment), r is the monthly interest rate (annual rate ÷ 12), and n is the total number of payments (years × 12).
What Is PMI?
Private Mortgage Insurance (PMI) is required when your down payment is less than 20% of the home price. It protects the lender — not you — in case you default. PMI typically costs 0.3% to 1.5% of the original loan amount per year. Once your equity reaches 20% (through payments or appreciation), you can request to have PMI removed.
Tips to Lower Your Payment
- Increase your down payment. Putting down 20% or more eliminates PMI entirely.
- Shop for a lower rate. Even a 0.5% rate reduction can save tens of thousands over the life of the loan.
- Choose a longer term. A 30-year mortgage has lower monthly payments than a 15-year, though you'll pay more total interest.
- Improve your credit score. Better credit unlocks lower interest rates from lenders.
- Consider property tax appeals. If your home assessment is too high, you may be overpaying on taxes.
Understanding Amortization
In the early years of your mortgage, most of each payment goes toward interest, not principal. For example, on a $320,000 loan at 6.5% over 30 years, your first payment of about $2,022 sends roughly $1,733 to interest and only $289 to principal. Over time, this ratio flips — by year 25, most of your payment builds equity. This is why extra principal payments early in the loan have a massive impact on total interest paid.
Disclaimer
This calculator provides estimates for informational purposes only. Actual payments may vary based on your lender's terms, insurance costs, tax rates, and other factors. Always consult a mortgage professional for a precise quote.