How it works
This calculator estimates your full monthly housing payment: principal and interest on the loan, plus one-twelfth of your yearly property tax and insurance, private mortgage insurance (PMI) if you put down less than 20%, and any HOA dues.
Lenders often call this total PITI. It is the number to compare against your budget, because escrow for taxes and insurance can add hundreds of dollars a month on top of the loan payment itself.
Add an extra monthly principal payment to see how much sooner the loan is paid off and how much interest you avoid.
Formula
M = P × r(1 + r)^n ÷ ((1 + r)^n − 1), where P is the loan amount, r the monthly rate and n the number of payments.
Questions people ask
What is included in a mortgage payment?
Principal and interest on the loan, plus property tax and homeowners insurance (usually paid through an escrow account). PMI and HOA dues are added when they apply.
When does PMI go away?
On a conventional loan you can ask the lender to remove PMI once your balance reaches 80% of the original home value, and it ends automatically at 78%. FHA mortgage insurance follows different rules.
Is a 15-year mortgage better than a 30-year?
A 15-year loan has a higher monthly payment but usually a lower rate and far less total interest. A 30-year loan keeps the payment lower and leaves more room in the monthly budget.
How much do extra payments save?
Every extra dollar goes straight to principal, so it stops accruing interest for the rest of the loan. Even $100 a month on a 30-year loan typically cuts several years and tens of thousands of dollars in interest.