Mortgage Calculator
Your true monthly payment — principal & interest plus property tax, homeowners insurance, PMI/MIP, and HOA — for Conventional, FHA, VA, and USDA loans.
- Principal & interest$2,022.62
- Property tax$366.67
- Home insurance$116.67
- Principal & interest$2,022.62
- Property tax$366.67
- Homeowners insurance$116.67
- Total monthly$2,505.95
Compare loan terms
| Term | Monthly P&I | Total interest | Payoff time |
|---|---|---|---|
| 15 years | $2,787.54 | $181,758 | 15 yrs |
| 20 years | $2,385.83 | $252,600 | 20 yrs |
| 30 yearsselected | $2,022.62 | $408,142 | 30 yrs |
Loan balance over time
Amortization schedule
| Year | Principal paid | Interest paid | Ending balance |
|---|---|---|---|
| 1 | $3,576.72 | $20,694.69 | $316,423.28 |
| 2 | $3,816.26 | $20,455.15 | $312,607.02 |
| 3 | $4,071.84 | $20,199.57 | $308,535.17 |
| 4 | $4,344.54 | $19,926.87 | $304,190.63 |
| 5 | $4,635.50 | $19,635.91 | $299,555.13 |
| 6 | $4,945.95 | $19,325.46 | $294,609.18 |
| 7 | $5,277.19 | $18,994.22 | $289,331.98 |
| 8 | $5,630.62 | $18,640.80 | $283,701.37 |
| 9 | $6,007.71 | $18,263.70 | $277,693.66 |
| 10 | $6,410.06 | $17,861.36 | $271,283.60 |
| 11 | $6,839.35 | $17,432.06 | $264,444.26 |
| 12 | $7,297.39 | $16,974.02 | $257,146.86 |
| 13 | $7,786.11 | $16,485.30 | $249,360.75 |
| 14 | $8,307.56 | $15,963.85 | $241,053.19 |
| 15 | $8,863.94 | $15,407.48 | $232,189.25 |
| 16 | $9,457.57 | $14,813.84 | $222,731.68 |
| 17 | $10,090.96 | $14,180.45 | $212,640.72 |
| 18 | $10,766.77 | $13,504.64 | $201,873.95 |
| 19 | $11,487.84 | $12,783.57 | $190,386.11 |
| 20 | $12,257.20 | $12,014.21 | $178,128.90 |
| 21 | $13,078.09 | $11,193.32 | $165,050.81 |
| 22 | $13,953.96 | $10,317.46 | $151,096.86 |
| 23 | $14,888.48 | $9,382.93 | $136,208.38 |
| 24 | $15,885.59 | $8,385.83 | $120,322.79 |
| 25 | $16,949.47 | $7,321.94 | $103,373.32 |
| 26 | $18,084.61 | $6,186.80 | $85,288.71 |
| 27 | $19,295.77 | $4,975.64 | $65,992.94 |
| 28 | $20,588.05 | $3,683.37 | $45,404.89 |
| 29 | $21,966.86 | $2,304.55 | $23,438.03 |
| 30 | $23,438.03 | $833.39 | $0.00 |
How the math works
Your monthly payment has two engines: the amortizing loan formula that sets principal & interest, and the escrow add-ons (tax, insurance, PMI) that turn it into the check you actually write.
The formula works like this. Take your annual rate and divide by 12 to get the monthly rate; multiply your years by 12 to get the number of payments. The payment is then sized so that, after exactly that many payments, the balance hits zero. Each month, the lender charges interest equal to the remaining balance times the monthly rate, and whatever is left of your payment reduces the balance. That's why early payments are mostly interest and later ones are mostly principal — the balance, and therefore the interest charge, shrinks every month.
On top of principal & interest come the escrow pieces. Property tax is roughly your home's assessed value times the local tax rate, divided by 12 — and it's reassessed regularly, so it moves. Homeowners insurance is your annual premium divided by 12. PMI (about 0.5% of the loan per year, divided by 12) applies on conventional loans with less than 20% down, and usually drops off once you owe 80% or less of the home's value.
Why each input matters: the home price sets the scale of everything; the down payment shrinks the loan and, at 20%, kills PMI entirely; the rate compounds across 360 payments, so small differences move the payment a lot; the term trades a smaller payment for far more total interest; and the loan type changes the insurance rules — FHA mortgage insurance often lasts the life of the loan, while VA loans charge no monthly insurance at all.
Worked example
Take a $400,000 home with 10% down ($40,000) on a 30-year conventional loan at 6.5%. The loan is $360,000; the monthly rate is 6.5% ÷ 12 = 0.5417%, over 360 payments — which gives $2,275.44/month in principal & interest. Property tax at 1.1% of the home value adds $366.67/month. Insurance at $1,800/year adds $150/month. PMI at 0.5% of the $360,000 loan adds another $150/month.
Notice that principal & interest is only about 77% of the real payment. Shoppers who budget from the P&I number alone are consistently surprised — always plan from the full PITI figure.
What to watch for
- Run every loan type, not just one. With 10% down, compare conventional-plus-PMI against FHA-plus-MIP side by side — FHA's insurance usually lasts the life of the loan, while conventional PMI drops off, which can flip the winner after a few years.
- Track your PMI exit date. On a conventional loan you can request cancellation at 80% of the original value. The amortization schedule shows exactly which month that lands in — mark it and call your servicer.
- Your "fixed" payment isn't fully fixed. Taxes and insurance are reassessed, usually yearly, and escrow shortages get spread across your payments. Keep a few hundred dollars of monthly slack.
- Shop the rate on the same day. A single percentage point is about $242/month on this loan (roughly $67 per $100,000 borrowed). Get at least three Loan Estimates within the same week so the quotes are comparable.
- Test the 15-year version. The payment jumps, but the lifetime interest savings are enormous. If the 15-year payment fits your budget with room to spare, it's worth serious thought — talk to a licensed professional about your situation.
Frequently asked questions
What is included in a monthly mortgage payment?
The full payment (often called PITI) is principal + interest, property taxes, and homeowners insurance — plus PMI or MIP if your down payment is under 20% on a conventional loan, and HOA dues if applicable.
How is PMI calculated?
On conventional loans with less than 20% down, private mortgage insurance typically costs around 0.5% of the loan amount per year, added to your monthly payment. It usually drops off once your balance reaches 80% of the home's value. FHA loans charge MIP (1.75% upfront plus 0.55% annually) for the life of the loan in most cases.
What's the difference between FHA, VA, and USDA loans?
FHA loans allow down payments as low as 3.5% but charge upfront and annual mortgage insurance. VA loans (for eligible service members and veterans) require no down payment and no monthly mortgage insurance, but charge a one-time funding fee. USDA loans serve eligible rural buyers with no down payment and a lower guarantee fee.
Does this calculator account for closing costs?
The monthly payment estimate doesn't include closing costs (typically 2–5% of the loan). Upfront FHA MIP, VA funding fees, and USDA guarantee fees are financed into the loan amount in this calculator.
How much does a 1% rate change affect my payment?
A lot more than it sounds. On a $360,000 30-year loan, 6.5% means $2,275.44/month in principal and interest; at 7.5% it's $2,517.17 — a $241.73/month difference, or about $67 per month for every $100,000 borrowed. That's why shopping lenders on the same day matters.
When does PMI drop off?
On conventional loans you can request cancellation once your balance hits 80% of the original home value, and it drops off automatically at 78%. FHA is different: if you put less than 10% down, the annual MIP typically lasts for the life of the loan — refinancing into a conventional loan is the usual exit.
Are property taxes and insurance fixed for the life of the loan?
No — only principal and interest are fixed on a fixed-rate mortgage. Taxes are reassessed (usually yearly) and insurance premiums change, so your escrow portion adjusts and your total payment moves. Budget a cushion for it.
What credit score do I need for a mortgage?
Conventional loans generally want 620+, with the best rates around 740 and up. FHA allows 580 for a 3.5% down payment (500–579 needs 10% down). VA and USDA have no official minimum, but most lenders set their own floors near 620.