About the Mortgage Calculator
A mortgage payment is made up of more than just principal and interest. Your total monthly cost typically also includes property taxes, homeowners insurance, HOA dues, and — if your down payment is under 20% — private mortgage insurance (PMI). This calculator brings all of those together so you can see the real number you'll pay each month, along with how much interest you'll pay over the life of the loan.
How it’s calculated
The monthly principal and interest payment uses the standard amortizing loan formula: M = P · [ r(1+r)^n ] / [ (1+r)^n − 1 ], where P is the loan amount, r is the monthly interest rate (annual rate ÷ 12), and n is the total number of monthly payments (years × 12). Taxes, insurance, HOA, and PMI are added on top.
Example calculation
On a $400,000 home with 20% down ($80,000), a $320,000 loan at 6.5% over 30 years gives a principal-and-interest payment of about $2,022 per month. Adding $500/month for taxes, insurance, and HOA brings the total to roughly $2,522 per month, with about $408,000 paid in interest over the full term.
Frequently asked questions
What is included in a monthly mortgage payment?
A typical monthly payment includes principal and interest (the loan itself), plus property taxes, homeowners insurance, HOA fees if applicable, and PMI if your down payment was less than 20%. Together these are often called PITI (principal, interest, taxes, insurance).
How much should my down payment be?
A 20% down payment lets you avoid private mortgage insurance (PMI) and lowers your monthly cost. Many loans allow far less — sometimes 3–5% — but a smaller down payment means a larger loan, more interest, and usually PMI until you build enough equity.
When does PMI go away?
PMI is typically required until your loan balance falls to about 80% of the home's value. On many loans it's automatically removed at 78% of the original value, or you can request cancellation once you reach 20% equity.
Does this calculator include closing costs?
No. This estimate focuses on the ongoing monthly payment and total interest. Closing costs (typically 2–5% of the loan) are one-time and vary by lender and location.
This calculator provides estimates for educational purposes and should not be considered financial, tax, or legal advice. Your actual figures may vary with lender terms, fees, and market conditions.