Mortgage Calculator
Estimate your monthly mortgage payment with property tax, insurance, PMI and HOA fees, then see the payoff date, a full amortization schedule and how much extra payments save.
How it works
M = P × r ÷ (1 − (1 + r)^−n) · Total monthly = M + (property tax + insurance + other) ÷ 12 + PMI + HOA · PMI = PMI rate × loan ÷ 12 while balance > 78% of price
M is the monthly principal-and-interest payment, P is the loan amount (home price minus down payment), r is the monthly interest rate (annual rate ÷ 12 ÷ 100) and n is the number of monthly payments (years × 12). Property tax, home insurance and any other yearly costs are divided by 12 and added, along with monthly HOA dues, because lenders usually collect tax and insurance through an escrow account. If you put down less than 20%, private mortgage insurance (PMI) is added as a yearly percentage of the original loan. Under the US Homeowners Protection Act, PMI ends automatically once the balance is scheduled to reach 78% of the original home value (or at the loan’s midpoint), and you can ask to cancel it at 80%; the calculator drops it at the threshold you choose. Each month the calculator charges interest on the remaining balance, applies the rest of the payment (plus any extra payments) to principal, and records the result in the yearly and monthly schedules. Extra payments go straight to principal, so the loan ends sooner and less interest builds up; the savings are measured against the same loan with no extra payments.
Worked example
A $350,000 home with $70,000 down (20%) at 6.5% for 30 years: P = $280,000, r = 0.065 ÷ 12 = 0.005417, n = 360, so M = $1,769.79. Adding $3,600 of property tax and $1,500 of insurance a year ($425 a month) gives $2,194.79 a month, and total interest is about $357,125. No PMI is due because the loan is exactly 80% of the price. Paying an extra $100 every month from the first payment pays the loan off in 25 years 9 months (309 payments) and saves about $60,200 of interest. With only 5% down on the same home, the loan is $332,500 and PMI at 0.5% adds $138.54 a month until the balance falls to $273,000 (78% of the price) after payment 135 — about $18,700 of PMI in total.
Sources: CFPB — When can I remove PMI from my loan? · CFPB — Homeowners Protection Act (PMI cancellation) exam procedures
Frequently asked questions
How is PMI calculated and when does it go away?
PMI is usually quoted as a yearly percentage of the original loan, often 0.3%–1.5% depending on your credit score and down payment. Divide that yearly amount by 12 to get the monthly charge. On conventional loans it ends automatically when the balance is scheduled to reach 78% of the home’s original value, and you can ask your servicer to remove it at 80%. FHA mortgage insurance follows separate rules and often lasts for the life of the loan.
Should I enter the down payment as a dollar amount or a percent?
Either works — pick whichever you know. The calculator shows both forms in the results, along with the loan-to-value ratio, so you can see how close you are to the 20% mark that removes PMI.
How much do extra payments save?
Every extra dollar reduces principal immediately, so it stops collecting interest for the rest of the loan. Turn on extra payments to add a monthly amount, a yearly lump sum or a one-time payment, and the calculator shows the interest saved, the new payoff date and both balance lines on the chart.
What does an accelerated biweekly plan do?
You pay half the monthly payment every two weeks. There are 26 two-week periods in a year, so you make the equivalent of 13 monthly payments instead of 12, which shortens a 30-year loan by several years. Check that your servicer applies biweekly payments on receipt rather than holding them until month end.
Why is so much of the early payment interest?
Interest is charged on the remaining balance, which is largest at the start. On a 30-year loan at 6.5%, about 85% of the first payment is interest; the principal share grows every month, as the yearly schedule shows.
How can I lower the monthly payment?
A bigger down payment, a lower rate, or a longer term all lower the monthly amount. Reaching 20% down also removes PMI. A longer term raises the total interest, though.
Related calculators
This is an educational estimate, not financial advice. Lenders use their own rounding, fees and credit terms — confirm exact figures with your lender or a licensed advisor.