Calculate your monthly mortgage payment including taxes, insurance, and PMI.
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Years
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Monthly Payment
$2,421$
Includes principal, interest, taxes, insurance, PMI, and HOA
Principal & Interest$1,896
Monthly Tax$300
Monthly Insurance$100
Monthly PMI$125
Total Interest Over Loan$382,633
Total of All Payments$871,633
This calculator estimates monthly payments. Actual payments may vary based on lender-specific fees, property tax rates, insurance quotes, and HOA regulations. Consult your lender for precise figures.
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What is the Mortgage Calculator?
A mortgage calculator is a financial tool that computes the monthly payment and total cost of a home loan. It factors in principal and interest (via amortization), property taxes, homeowner's insurance, private mortgage insurance (PMI), and HOA fees. Unlike a simple interest calculator, it combines all monthly obligations into one estimate, helping you understand the full financial picture of owning a home.
How it works
The calculator uses the amortization formula: Monthly P&I = Loan × (r × (1+r)^n) / ((1+r)^n - 1), where r is the monthly interest rate and n is the number of payments. It then adds monthly property tax (yearly tax ÷ 12), insurance (yearly insurance ÷ 12), PMI (loan × PMI% ÷ 100 ÷ 12), and HOA fees to get the total monthly payment. The loan amount is calculated as home price minus down payment.
The amortization formula spreads the loan evenly across monthly payments while charging interest on the unpaid balance. Taxes, insurance, and PMI are added monthly. The total monthly payment is the sum of all components, representing the full cost of homeownership each month.
Enter the home purchase price and your down payment (in dollars or your chosen currency).
Set the loan term (typically 15, 20, or 30 years) and the annual interest rate offered by your lender.
Input your annual property tax and homeowner's insurance costs (found on property records or insurance quotes).
Enter your PMI rate if you're putting down less than 20%; leave 0 for 20%+ down or if PMI is already included.
Add any monthly HOA or community fees if applicable.
Select your currency and click Calculate.
Review the monthly payment breakdown and total interest cost.
Benefits
See the full monthly cost upfront, including taxes and insurance—not just principal and interest.
Compare loan scenarios instantly: test different rates, down payments, or terms to find affordability.
Understand the impact of PMI; lower down payments trigger higher insurance but smaller upfront costs.
Calculate total interest paid over the loan's lifetime to assess long-term affordability.
Plan a realistic budget that accounts for all homeownership costs, not just the mortgage.
Identify when PMI drops off (typically at 20% equity or loan-to-value threshold).
Tips & common mistakes
Common mistakes
Forgetting to include property tax and insurance; these can add $300–$500+ per month and are often misses in rough budgeting.
Underestimating PMI impact on affordability; PMI can add 0.5–1% of the loan annually on low-down-payment mortgages.
Assuming the interest rate won't change; adjustable-rate mortgages (ARMs) reset after an initial fixed period, increasing payments.
Ignoring HOA fees; for condos or townhomes, HOA can be $100–$500+ monthly and is mandatory.
Tips
Aim for a down payment ≥20% to avoid PMI entirely; each % over 20% saves thousands over the loan's life.
Shop multiple lenders for interest rates; a 0.5% difference can save tens of thousands in interest over 30 years.
Use this calculator to test a 15-year vs. 30-year mortgage; shorter terms cost less in interest but have higher monthly payments.
Factor in closing costs (typically 2–5% of home price); they're not shown here but affect your total out-of-pocket cost.
Recalculate if rates drop or if you come into extra funds to pay down principal; lenders allow annual prepayment penalties to vary.
Frequently asked questions
What's PMI and when do I need to pay it?
Private Mortgage Insurance (PMI) protects the lender if you default. Most lenders require it for down payments <20%. Once you build 20% equity, you can request its removal. Calculate it as a percentage of the loan amount, not the home price.
Should I choose a 15-year or 30-year mortgage?
A 30-year mortgage has lower monthly payments but more total interest (~50% of loan vs. ~20% for 15-year). Choose based on your monthly budget and whether you can refinance or pay extra later. Use this calculator to compare.
How does interest rate affect total cost?
Interest rates have a massive impact. A 1% rate difference on a $300,000 loan over 30 years changes the total interest from ~$215,000 to ~$331,000—a difference of over $100,000. Always shop rates.
Are property taxes and insurance included in my monthly mortgage payment?
Often yes, via escrow. Your lender collects them monthly and pays your tax and insurance bills annually. This calculator adds them to your payment to show the total cost of ownership. Confirm with your lender if these are escrowed.
Can I pay off my mortgage early?
Yes. Most mortgages allow prepayment without penalty. Paying extra towards principal reduces the loan faster and saves on interest. Use this calculator to estimate how much extra you'd need to pay to shorten the loan term.
What if interest rates are variable (ARM)?
This calculator assumes a fixed rate. If you have an ARM, your rate resets after the initial fixed period (e.g., 3/1 ARM = fixed for 3 years). Recalculate with the new rate when the reset date approaches.