Mortgage Calculator
Calculate your monthly mortgage payment including principal, interest, property tax, insurance, PMI, and HOA fees. Get a full amortization schedule instantly.
Payment Breakdown
Frequently Asked Questions
How is a mortgage payment calculated?
Monthly principal & interest uses the formula: M = P × [r(1+r)^n] / [(1+r)^n – 1]. Where P = loan amount, r = monthly interest rate (annual rate ÷ 12), n = number of payments (years × 12). Example: $300,000 loan at 6.5% for 30 years: r = 0.065/12 = 0.00542, n = 360, M ≈ $1,896/month for principal and interest alone.
What is included in a monthly mortgage payment (PITI)?
PITI stands for Principal, Interest, Taxes, and Insurance — the four components of a typical monthly mortgage payment. Property tax and homeowners insurance are often collected monthly into an escrow account and paid on your behalf. PMI (Private Mortgage Insurance) and HOA fees may add to this if applicable.
What is PMI and when do I need it?
PMI (Private Mortgage Insurance) is typically required when your down payment is less than 20% of the home price. It protects the lender if you default. PMI usually costs 0.5–1.5% of the loan amount per year and can be removed once you reach 20% equity.
How much down payment do I need for a mortgage?
Conventional loans typically require 5–20% down. FHA loans allow as little as 3.5% down. VA and USDA loans can offer 0% down for eligible borrowers. A 20%+ down payment avoids PMI and reduces your monthly payment and total interest paid.
How does loan term affect my mortgage payment?
A 15-year mortgage has a higher monthly payment than a 30-year mortgage for the same loan amount, but you pay significantly less total interest and build equity faster. Example: $300,000 at 6.5% — 30-year term is about $1,896/month with ~$382,000 total interest; 15-year term is about $2,613/month with ~$170,000 total interest.
What is an amortization schedule?
An amortization schedule shows how each monthly payment splits between principal and interest over the life of the loan. Early payments are interest-heavy; later payments are principal-heavy. Our calculator generates the full year-by-year (and month-by-month) breakdown automatically.