Mortgage Payment Calculator
This mortgage payment calculator works out the full monthly cost of a home loan — principal and interest, property tax, homeowners insurance, PMI while the down payment is under 20%, and HOA dues — from your price, down payment, rate, and term. It also finds the month PMI ends (80% loan-to-value on request, 78% automatically) and shows the loan balance year by year, so you can see what the loan costs in total. Every figure shows its math; rates, taxes, and insurance are entered by you, and the result is an estimate for planning — not a lender offer or financial advice.
The purchase price before the down payment.
Cash you pay up front. 20% of the price avoids PMI entirely.
Your rate from a Loan Estimate or pre-approval — not an advertised rate. Enter 0 for a 0% loan.
The fixed-rate term. A 15-year term roughly doubles the principal in each payment and cuts total interest sharply.
Your annual bill from the county tax assessor. If you only have the rate, multiply it by the price — 1.2% of $400,000 is $4,800 a year.
Your annual premium from an insurance quote. The default is an example only — rates vary widely by state, coverage, and deductible.
Only charged while the down payment is under 20% of the price — typically 0.5–1% of the loan per year. Your lender sets the actual rate.
Monthly homeowners association dues, if any — check the listing or the HOA documents. Enter 0 for no HOA.
Monthly payment (PITI + HOA)
2,572.62
- Principal & interest$320000.00 at 6.5% over 360 months.
- 2,022.62
- Property tax$4800.00 a year ÷ 12.
- 400
- Homeowners insurance$1800.00 a year ÷ 12.
- 150
- PMINo PMI — the down payment is 20% or more of the price.
- 0
- HOA dues
- 0
- Loan amount$400000.00 − $80000.00 down.
- 320,000
- Total interest over the loan$2022.62 × 360 − $320000.00.
- 408,142.36
- Total PMI paidNo PMI was charged.
- 0
- PMI ends on request (80% of home value)No PMI — the down payment is 20% or more of the price.
- 0months
- PMI ends automatically (78% of home value)No PMI — the down payment is 20% or more of the price.
- 0months
- Total of all paymentsPrincipal & interest + tax + insurance + HOA over 360 months, plus $0.00 of PMI.
- 926,142.36
How it was calculated
- Loan amount: $400000.00 − $80000.00 down = $320000.00 (20.0% down — 20% or more, so no PMI).
- Principal & interest: M = P·r(1+r)^n ÷ ((1+r)^n − 1) with P = $320000.00, r = 6.5% ÷ 12 = 0.541667, n = 360 → $2022.62 a month.
- Monthly extras: tax $4800.00 ÷ 12 = $400.00, insurance $1800.00 ÷ 12 = $150.00, PMI $0.00, HOA $0.00 — total $2572.62 a month.
- Total interest: $2022.62 × 360 − $320000.00 = $408142.36.
- Amortization — loan balance at year-end: Year 1: $316423.28 · Year 5: $299555.13 · Year 10: $271283.60 · Year 15: $232189.25 · Year 20: $178128.90 · Year 25: $103373.32 · Year 30: $0.00.
How it works
Principal & interest use the standard amortizing-loan formula: M = P·r(1+r)^n ÷ ((1+r)^n − 1), where P is the loan amount (price − down payment), r is the monthly rate (annual rate ÷ 12), and n is the term in months. For the worked example — a $400,000 home with $80,000 down at 6.5% over 30 years — P = $320,000, r = 0.005417, n = 360, so M = $2,022.62 a month, and total interest is $2,022.62 × 360 − $320,000 = $408,142.36. A 0% rate loan is simpler: the payment is just P ÷ n, with no interest at all.
The full monthly payment is PITI plus HOA: principal & interest, property tax (annual bill ÷ 12), homeowners insurance (annual premium ÷ 12), PMI, and HOA dues. On the worked example the tax is $4,800 ÷ 12 = $400 and the insurance is $1,800 ÷ 12 = $150, so with no PMI and no HOA the total is $2,022.62 + $400 + $150 = $2,572.62 a month. Tax and insurance are entered by you — they vary by county and insurer, so no rate is assumed.
PMI is charged only while the down payment is under 20% of the price, at the rate you enter (typically 0.5–1% of the loan per year). You can ask the lender to remove it once the balance reaches 80% of the home value, and it must end automatically at 78% under the Homeowners Protection Act. On a $400,000 home with 10% down ($360,000 loan at 6.5%, PMI 0.85%), PMI is $255 a month, the balance hits 80% ($320,000) in month 95 and 78% ($312,000) in month 109 — so PMI costs $255 × 109 = $27,795 in total if you wait for the automatic cut-off.
The balance falls slowly at first because early payments are mostly interest: on the worked example the $320,000 loan is still $316,423.28 after year 1 and $299,555.13 after year 5, and only $232,189.25 after year 15. A shorter term changes that sharply — the same $320,000 loan at 6% over 15 years costs $2,700.34 a month in principal & interest but only $166,061.53 in total interest, versus $408,142.36 on a 30-year loan at 6.5%.
Worked examples
$400,000 home, 20% down, 6.5% for 30 years: $2,572.62 a month
Borrow $320,000 at 6.5% over 30 years: r = 6.5% ÷ 12 = 0.005417, so principal & interest is $2,022.62 a month. Add property tax $4,800 ÷ 12 = $400 and insurance $1,800 ÷ 12 = $150, and the total is $2,572.62 a month. No PMI is charged because the down payment is 20% of the price. Over the loan you pay $408,142.36 in interest, and the balance is $316,423.28 after year 1, $271,283.60 after year 10, and $0 after year 30.
10% down on the same home: $3,080.44 a month, PMI ends in month 109
With $40,000 down the loan is $360,000, so principal & interest rises to $2,275.44 a month at 6.5% over 30 years. PMI at 0.85% of the loan is $255 a month, plus $400 tax and $150 insurance, for a total of $3,080.44 a month. The balance reaches 80% of the $400,000 value ($320,000) in month 95 — when you can ask for PMI removal — and 78% ($312,000) in month 109, when it must end automatically. Waiting for month 109 costs $255 × 109 = $27,795 in PMI.
How to measure
- Get the rate from a Loan Estimate, not an advertisement: the CFPB Loan Estimate (sections A–H) shows the rate, monthly payment, and cash to close for one specific offer, and advertised rates are usually for the best credit tier. Your approved rate is the one that decides the payment.
- Use your actual property tax bill from the county tax assessor, not a national average — rates vary from under 0.5% to over 2% of the home value depending on the county, and the bill usually rises over the life of the loan.
- Get homeowners insurance quotes before you lock the payment: the premium depends on the state, the coverage, and the deductible, and a quote that is $600 a year higher adds $50 a month to the payment.
- Ask the lender in writing how PMI removal works on your loan: when you can request it (80% of the original value), whether a new appraisal is needed, and whether the loan is one of the types where PMI cannot be removed early. The months this tool shows assume the balance falls on schedule with no extra payments.
- Confirm HOA dues from the listing or the HOA documents before you budget: dues are not in the loan, they are on top of PITI every month, and special assessments can add more. Enter 0 only when the home truly has no HOA.
Assumptions & limitations
Planning estimate
- Fixed rate with monthly compounding and end-of-month payments. Adjustable-rate loans, biweekly schedules, and loans with a balloon payment are not modeled — a biweekly plan pays the loan off faster than the same monthly payment shown here.
- Property tax and insurance are entered by you and held flat for the whole term. In reality both usually rise, and the lender re-checks the escrow account yearly — a payment that starts at $2,572.62 can grow over 30 years.
- PMI is charged at the rate you enter and ends on the balance schedule shown, assuming no extra principal payments and no home-value change. Extra payments move the cut-off months earlier; a higher appraisal can move them earlier too, and some loan types (FHA, VA) have different PMI rules.
- Closing costs are NOT in the monthly payment: Freddie Mac puts buyer closing costs at 2–5% of the price ($8,000–$20,000 on a $400,000 home), paid at closing, plus the down payment — the cash to close is far more than the first monthly payment.
- All figures are estimates for planning a purchase, not a lender offer, a pre-approval, or financial advice. Measurely does not provide loans, recommend lenders, or advise whether to buy a home.
Frequently asked questions
Principal, Interest, Taxes, and Insurance — the four parts of the standard monthly mortgage payment. Principal & interest go to the lender (on the worked example, $2,022.62 a month on a $320,000 loan at 6.5% over 30 years); property tax and homeowners insurance are usually collected by the lender into escrow and paid on your behalf ($400 and $150 a month on the example). PMI and HOA dues sit on top when they apply. This calculator shows every part separately so you can see which one is driving the total.
Two ways: you can ask the lender to remove it once the loan balance reaches 80% of the home value, and it must end automatically at 78% under the Homeowners Protection Act. On the worked example — a $400,000 home with 10% down, a $360,000 loan at 6.5%, PMI at 0.85% — the balance hits 80% ($320,000) in month 95 and 78% ($312,000) in month 109. Waiting for the automatic cut-off costs $255 × 109 = $27,795 in PMI; asking at month 95 saves about $3,570. Extra principal payments and a higher appraisal can both move the dates earlier.
20% of the home price. On a $400,000 home that is $80,000 down, leaving a $320,000 loan at exactly 80% loan-to-value — and the calculator charges $0 PMI at 20% or more. Below 20% the lender charges PMI (typically 0.5–1% of the loan per year) until the balance falls to 80% on request or 78% automatically. A smaller down payment is not automatically wrong — it just adds a monthly PMI line and more interest — so compare the two cases in the calculator before deciding.
No. Closing costs are paid once, at closing, not monthly: Freddie Mac puts buyer closing costs at 2–5% of the price, which is $8,000–$20,000 on a $400,000 home, covering lender charges, title, government fees, and prepaid tax and insurance. The cash to close is the down payment plus those costs, minus any deposit and seller credits. This calculator shows the monthly payment only — use the closing cost calculator (next in this category) for the cash-to-close figure.
It depends what you value. On a $320,000 loan, a 15-year term at 6% costs $2,700.34 a month in principal & interest and $166,061.53 in total interest, while a 30-year term at 6.5% costs $2,022.62 a month and $408,142.36 in total interest. The 15-year loan costs about $678 more a month but saves about $242,081 in interest and ends 15 years sooner. The trade-off is cash flow: the higher payment leaves less room for other goals, so run both terms with your own price, down payment, and rate before choosing.