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Mortgage Calculator
Estimate your monthly mortgage payment with taxes, insurance, PMI, and HOA fees.
Mortgage details
Taxes, insurance, and fees
Payments over time
Annual payment costs and loan balanceInterpret your mortgage estimate
Your monthly estimate combines principal, interest, property tax, insurance, PMI, and HOA dues. It is closer to a real housing budget than principal and interest alone, but it is still not a lender quote.
Inputs that matter most
- Interest rate: even a small rate change can move the payment meaningfully.
- Down payment: affects loan size and may remove PMI at 20% down.
- Property tax: can vary heavily by location and reassessment rules.
- Insurance and HOA: easy to underestimate, especially for condos or higher-risk properties.
Common mistakes
- Comparing only principal and interest instead of the full monthly cost.
- Forgetting that taxes and insurance can change after purchase.
- Assuming PMI automatically disappears at exactly 20% equity.
- Ignoring closing costs, repairs, utilities, and cash reserves.
When this estimate can be misleading
This estimate does not include lender fees, points, prepaid interest, escrow adjustments, local tax reassessments, future insurance changes, or your full debt-to-income picture.
Scenarios to try
- Compare 10%, 20%, and 25% down.
- Raise the interest rate by 0.5% to test affordability.
- Add HOA dues before assuming a property has none.
- Try a 15-year term to compare payment size against total interest.
Next-step utilities
How to use this mortgage calculator
Enter the loan details you know, then use the payment breakdown and chart to see how principal, interest, taxes, insurance, PMI, and HOA dues affect the monthly estimate.
- Enter the home price and down payment. The calculator uses the difference as the starting loan amount.
- Add the interest rate and loan term. Use the quoted annual rate for a fixed-rate loan when possible.
- Enter annual property tax and homeowners insurance estimates, plus any PMI rate and monthly HOA dues.
- Review the monthly payment card to see the total payment and each cost category separately.
- Use the chart to see how annual payments and remaining loan balance change over the life of the loan.
Mortgage Calculator features
- Estimate monthly mortgage payments including principal and interest.
- Include property taxes, homeowners insurance, PMI, and HOA dues.
- Enter home price and down payment to calculate starting loan amount.
- Adjust interest rate and loan term for fixed-rate scenarios.
- Review a monthly payment breakdown by cost category.
- See annual payments over the life of the loan.
- Chart remaining loan balance over time.
- Compare 10%, 20%, and larger down payment assumptions.
- Use the payment estimate before comparing affordability or refinance options.
What is included in a mortgage payment?
A mortgage payment is often described as PITI: principal, interest, taxes, and insurance. Depending on the loan and property, PMI and HOA dues may also be part of the monthly cost.
A mortgage is a loan used to buy real estate. The borrower repays the loan over time, usually with monthly payments that include principal and interest. Principal reduces the loan balance; interest is the cost of borrowing the money.
Many homeowners also pay property taxes, homeowners insurance, mortgage insurance, and HOA dues alongside the loan payment. Lenders often collect taxes and insurance through escrow, which can make the monthly bill higher than principal and interest alone.
This calculator is designed for fixed-rate mortgage estimates. It is useful for comparing scenarios, but it is not a lender quote and does not include every possible local tax, lender fee, escrow rule, or adjustable-rate change.
Mortgage payment formula and assumptions
The calculator starts with the loan amount, amortizes principal and interest over the selected term, then adds monthly ownership costs.
L = H - D
H is the home price and D is the down payment.
M = L \cdot \frac{r(1+r)^n}{(1+r)^n - 1}
L is the loan amount, r is the monthly interest rate, and n is the number of monthly payments. If the interest rate is 0%, the calculator divides the loan amount evenly across the term.
T = M + \frac{P}{12} + \frac{I}{12} + \operatorname{PMI} + A
P is annual property tax, I is annual insurance, and A is monthly HOA dues.
\operatorname{PMI} = \begin{cases} \frac{L \cdot p}{12}, & \frac{L}{H} > 0.8 \\ 0, & \frac{L}{H} \le 0.8 \end{cases}
PMI is included when loan-to-value is above 80%. Actual PMI rules and cancellation timing vary by loan type and lender.
The simplified PMI treatment follows the Consumer Financial Protection Bureau's explanation of when conventional PMI may be removed. The CFPB's home loan toolkit provides context for comparing the full payment and loan costs rather than principal and interest alone.
Mortgage calculator FAQ
Common questions about mortgage estimates, PMI, taxes, insurance, and down payments.
What is included in this mortgage payment estimate?
The estimate includes principal and interest, annual property taxes divided monthly, annual homeowners insurance divided monthly, PMI when loan-to-value is above 80%, and monthly HOA dues.
Why is my lender quote different from this calculator?
A lender quote can include exact escrow settings, local tax data, prepaid interest, closing costs, loan program rules, discount points, and lender-specific fees. This calculator is for planning and comparison, not a final quote.
When does PMI go away?
PMI commonly applies when the loan-to-value ratio is above 80%. It may be removable after enough principal has been paid down, but the exact rule depends on the loan type, payment history, property value, and lender requirements.
How does a larger down payment affect the monthly payment?
A larger down payment lowers the loan amount, which usually lowers principal and interest. It may also reduce or eliminate PMI if the down payment brings the loan-to-value ratio to 80% or below.
Should I include property taxes and insurance?
Yes. Principal and interest alone can understate the real monthly cost of owning a home. Entering taxes and insurance gives a more useful estimate of the payment you may need to budget for.
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