Estimate your total monthly mortgage payment, including principal, interest, property tax, home insurance, and PMI.
Your monthly mortgage payment is usually made up of four parts, sometimes called PITI: principal and interest on the loan itself, plus a share of your annual property tax and home insurance collected monthly into an escrow account. If your down payment is under 20% of the home price, lenders typically also require private mortgage insurance (PMI) until you build enough equity.
Principal and interest come from the standard amortization formula: M = P × [r(1 + r)n] / [(1 + r)n − 1]. Here P is the loan amount (home price minus down payment), r is the monthly interest rate (the annual rate divided by 12), and n is the number of monthly payments. Property tax, insurance, and PMI are simply their annual costs divided by 12.
Beyond the monthly payment, the calculator walks through the loan month by month to show the total interest you would pay over the life of the loan. If you enter an extra monthly payment, it also shows how much sooner you would be debt-free and how much interest you would save. When PMI applies, it estimates when your balance reaches 80% of the home price, the point where you can typically ask to drop it.
Homeowners association (HOA) dues are not included, so add them separately if your home has them.
Loan term has a big effect: a 30-year loan spreads principal over more payments, lowering the monthly amount but increasing total interest paid over the life of the loan compared to a 15-year term. The interest rate matters just as much, since it applies to your whole balance for decades. A larger down payment reduces both your loan amount and, once it clears 20%, removes the PMI requirement entirely.
With the default numbers above, a $350,000 home, $70,000 down (20%), and a 6.75% rate on a 30-year term, the $280,000 loan works out to $1,816.07 a month in principal and interest. Add $320.83 for property tax and $116.67 for insurance, and since the down payment already clears 20%, no PMI is required. That brings the total to $2,253.57 a month.
Over 30 years, those 360 payments of principal and interest add up to about $653,787. Subtract the $280,000 you borrowed, and the interest alone comes to roughly $373,787, more than the loan itself.
Now keep the same $350,000 home but put down only 10%, or $35,000. The loan grows to $315,000 and principal and interest rise to $2,043.08. At the default 0.6% PMI rate, PMI adds $157.50 a month. With the same tax and insurance, the total becomes $2,638.08, which is $384.51 a month more than the 20% down scenario.
PMI is not permanent. Your balance reaches 80% of the home price ($280,000) after about 8 years and 2 months of regular payments, and by then you would have paid roughly $15,400 in PMI. If you also paid an extra $200 a month, you would reach that point in about 5 years and 3 months. This is why the extra payment box can be worth a look even before you think about paying off the whole loan early.
Every extra dollar goes straight to principal, which reduces the interest charged on all your later payments. On the default loan, an extra $200 a month pays it off in about 22 years and 7 months instead of 30, and cuts total interest from about $373,787 to about $266,209. That saves roughly $107,578 and 7 years and 5 months. Even $100 extra a month pays the loan off in about 25 years and 8 months and saves roughly $64,220.
Before you start, ask your lender to apply extra payments to principal, and confirm your loan has no prepayment penalty. Most modern conventional mortgages do not, but it is worth checking.
Using the same $280,000 loan at 6.75%, here is what each term costs:
The 15-year payment is $661.68 higher each month, but it saves roughly $207,793 in interest. In practice, shorter terms usually come with a slightly lower rate, which widens the gap further. The same rate is used above for a clean comparison. Try the loan term menu with your own numbers to see the trade-off between a comfortable payment and lower lifetime cost.
Treat the result as a solid starting estimate, then compare official Loan Estimates from several lenders before you commit.
A common guideline is that housing costs should stay around 28% of gross monthly income, with total debt payments around 36%, although lenders set their own limits. To see how a payment fits your income, try the house affordability calculator and the debt-to-income calculator. If you are still deciding whether to buy at all, compare the numbers with the rent vs. buy calculator. For other kinds of borrowing, use the loan calculator, and if debt is holding you back, read whether to pay off debt before buying a house.
Still deciding on a price range? Read how much house you can afford, a step-by-step guide that turns your income, debts and down payment into a monthly budget and a home price.
Does this include closing costs?
No. Closing costs are a one-time upfront expense (typically 2-5% of the loan amount) and aren't part of your recurring monthly payment, so they aren't included here.
When does PMI go away?
PMI is generally required until your loan balance drops to 80% of the home's original value, either through payments or appreciation. Some loans let you request removal once you reach that threshold.
Are property tax rates the same everywhere?
No, property tax rates vary significantly by state, county, and city. Check your local assessor's rate for a more accurate estimate than the default shown here.
How much does a lower interest rate actually save?
More than most people expect. On this $280,000 loan, dropping the rate from 6.75% to 5.75% (one percentage point) lowers the monthly principal and interest payment by roughly $180, and saves about $65,000 in total interest over 30 years. Shopping around for even a small rate difference is usually worth the effort on a loan this size.
What's the difference between a 15-year and 30-year mortgage payment?
A 15-year term pays off the same loan amount roughly twice as fast, which raises the monthly principal and interest payment substantially but cuts total interest paid by more than half. Switch the loan term above to compare both directly with your own numbers.
Can I remove PMI early?
Often, yes. Once your loan balance drops to 80% of the home's original value (through payments, extra principal payments, or rising home value with an appraisal), you can typically request PMI removal from your lender rather than waiting for it to fall off automatically at the 78% mark.
Can I use this calculator to estimate a refinance?
Yes. Enter your home's current value as the home price, and set the down payment to that value minus the new loan amount you want. Then add the new rate and term. Entering the value this way keeps property tax and the PMI test accurate, because a refinance with at least 20% equity does not need PMI.
What is escrow, and do I have to use it?
An escrow account is where your lender holds the monthly property tax and insurance portion of your payment, then pays those bills for you when they come due. Lenders commonly require it when your down payment is under 20%. With a larger down payment, some lenders let you pay these bills yourself instead.