Where your monthly payment goes
This breakdown updates automatically as you change the inputs above.
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Mortgage & Real Estate
Mortgage Calculator
Estimate your monthly mortgage payment, principal, interest, property tax, homeowners insurance, and PMI, and see how much you'll pay in total over the life of the loan.
Estimated monthly payment
$2,023
Principal & interest$1,819
Property tax$333
Home insurance$125
PMI$0
Total interest over loan$334,684
How it works
This calculator estimates your total monthly housing payment, often called PITI: Principal, Interest, Taxes, and Insurance. It first calculates your loan amount (home price minus down payment), then applies a standard amortization formula to find your fixed principal-and-interest payment, and finally adds a monthly share of property tax, home insurance, and PMI on top.
The amortization formula
M = P × [ r(1+r)^n ] / [ (1+r)^n − 1 ]
M = monthly principal & interest payment
P = loan principal (home price − down payment)
r = monthly interest rate (annual rate ÷ 12)
n = total number of payments (years × 12)
M = monthly principal & interest payment
P = loan principal (home price − down payment)
r = monthly interest rate (annual rate ÷ 12)
n = total number of payments (years × 12)
Worked example
For a $400,000 home with a 20% down payment ($80,000), a 30-year term, and a 6.5% interest rate:
| Item | Amount |
|---|---|
| Loan amount | $320,000 |
| Monthly principal & interest | $1,819 |
| Monthly property tax | $333 |
| Monthly home insurance | $125 |
| Total monthly payment | $2,277 |
| Total interest paid over 30 years | $334,684 |
Tips for lowering your monthly payment
- Increase your down payment to reduce both the loan amount and, if you cross 20%, remove PMI entirely.
- Shop multiple lenders, even a 0.25% rate difference changes your payment meaningfully on a 30-year loan.
- Consider a 20-year term as a middle ground between a 15-year's savings and a 30-year's lower payment.
- Check whether your county reassesses property tax after purchase, since sale price often resets the assessed value.
Frequently asked questions
How is a monthly mortgage payment calculated?
It's built from your loan amount, interest rate, and term using the amortization formula above, then property tax, home insurance, and PMI are added to get your total monthly payment.
What is PMI and when do I have to pay it?
PMI is typically required when your down payment is under 20% on a conventional loan. It protects the lender, not you, and is usually dropped once you reach 20–22% equity.
Does this calculator include property tax and insurance?
Yes, enter your estimated annual amounts and the calculator converts them to a monthly share automatically.
How much extra do I pay on a 30-year loan versus a 15-year loan?
A 30-year loan lowers your monthly payment but roughly doubles total interest paid compared with a 15-year loan at the same rate, since the balance is outstanding for twice as long.
Does the calculator include PMI automatically?
It can. If your down payment is under 20%, enter an estimated PMI amount or set the field to zero to see the monthly payment with and without that cost.