How to use the Mortgage calculator
- Enter your numbers. Fill in home price, down payment, down payment %, interest rate, loan term.
- Enter taxes, insurance & fees details. Fill in property tax / yr, home insurance / yr, hoa / month, pmi rate.
- Read your results. Results update instantly. The headline shows the estimated monthly payment; the breakdown and table below show the details.
How this mortgage calculator works
Your monthly payment has two parts: principal and interest (fixed for a fixed-rate loan) plus escrow costs like property tax and homeowners insurance. If you put down less than 20%, lenders usually add private mortgage insurance (PMI) until you reach 20% equity. HOA dues are paid separately but are part of your housing budget.
The formula
where M is the monthly payment, P the amount borrowed, r the monthly interest rate (APR ÷ 12) and n the number of monthly payments. Each month, interest is charged on the remaining balance and the rest of the payment reduces principal, so early payments are mostly interest and later payments are mostly principal.
Ways to lower your payment
- Put 20% down to avoid PMI.
- Compare a 15-year term: higher payment, far less total interest.
- Shop rates with at least three lenders; even 0.25% matters.
- Appeal your property tax assessment if it looks high.
Worked example
With these inputs: home price$400,000; down payment$80,000; down payment %20%; interest rate6.5%; loan term30y; property tax / yr$4,400; home insurance / yr$1,500; pmi rate (if under 20% down)0.5%.
The calculator gives a estimated monthly payment of $2,514. Other results: loan amount$320,000, total interest$408,142, total of p&i payments$728,142, payoff dateOct 2056.
What your results mean
Your monthly payment combines principal and interest (P&I) with escrow items: property tax and insurance, plus PMI if you put down less than 20%, and HOA dues if they apply. Lenders look at this full amount (PITI) when they decide how much you can borrow.
Tips
- Get your actual property tax rate from the county assessor; it varies widely by town.
- At 20% down you avoid PMI on a conventional loan, and you can ask to cancel PMI once you reach 20% equity.
- Compare Loan Estimates from at least three lenders; small rate differences add up over 30 years.
Frequently asked questions
How much is a $400,000 mortgage per month?
At 6.5% for 30 years, principal and interest are about $2,528 per month. Taxes, insurance and PMI come on top. Enter your numbers above for the full payment.
What is included in a mortgage payment?
Principal and interest, and usually escrow for property taxes and homeowners insurance. PMI applies with less than 20% down on conventional loans, and HOA dues are often paid separately.
What is PITI?
Principal, interest, taxes and insurance: the four core parts of a monthly mortgage payment.
When does PMI go away?
On conventional loans, you can request cancellation at 20% equity based on the original value, and it ends automatically at 22% (Homeowners Protection Act).
How much should I put down?
20% avoids PMI, but many loans allow 3%–5% (conventional) or 3.5% (FHA). Keep an emergency fund after closing.
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