Mortgage Calculator

Calculate your full monthly mortgage payment for a home purchase — principal and interest plus optional property tax, homeowners insurance, HOA dues, and PMI when your down payment is under 20%.

Examples

$400K home, 20% down, 30y at 7%

Bankrate-style benchmark: $400,000 home with $80,000 down, 30-year fixed at 7.00% APR, principal & interest only.

Home Price: $400,000
Down Payment: $80,000
Interest Rate: 7 %
Loan Term: 30 years
Include taxes, insurance & HOA: No — show P&I only
Property Tax: $4,800 /yr
Homeowners Insurance: $1,800 /yr
HOA Dues: $0 /mo

Monthly Payment

$2,128.97

Principal & Interest

$2,128.97

Total Interest Over Loan

$446,428.47

Down Payment

20%

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How It Works

Formula

P = \text{homePrice} - \text{downPayment}

M_{P\&I} = P \times \frac{r(1 + r)^{n}}{(1 + r)^{n} - 1}

M_{\text{PITI}} = M_{P\&I} + M_{\text{PMI}} + M_{\text{tax}} + M_{\text{ins}} + M_{\text{HOA}}

Variables, symbols and units

$P$: Loan principal — home price minus down payment(currency)
$M_{P\&I}$: Monthly principal and interest payment(currency / month)
$M_{\text{PITI}}$: Full monthly housing payment (principal, interest, taxes, insurance, plus PMI and HOA)(currency / month)
$r$: Monthly interest rate — annual rate divided by 12 × 100
$n$: Total number of monthly payments — years × 12
$M_{\text{PMI}}$: Monthly PMI — 0.5%/year of the loan amount, applied when down payment < 20%(currency / month)

Calculation method explained

The calculator takes home price minus down payment as the loan principal, then applies the standard amortization formula for principal and interest. PMI at 0.5%/year of the loan amount is added automatically whenever the down payment is under 20%. With the toggle on, monthly property tax, homeowners insurance, and HOA dues are folded in to give the full PITI monthly payment.

References and source material

Examples

$400K home, 20% down, 30y at 7%$400,000 · $80,000 → $2,128.97

Bankrate-style benchmark: $400,000 home with $80,000 down, 30-year fixed at 7.00% APR, principal & interest only.

Home Price: $400,000
Down Payment: $80,000
Interest Rate: 7 %
Loan Term: 30 years
Include taxes, insurance & HOA: No — show P&I only
Property Tax: $4,800 /yr
Homeowners Insurance: $1,800 /yr
HOA Dues: $0 /mo

Monthly Payment: $2,128.97

$350K home, 10% down, 30y at 7.25% (PMI applies)$350,000 · $35,000 → $2,771.77

A typical first-time buyer: $350,000 home with $35,000 down (10%), 30-year at 7.25% with full taxes and insurance — triggers PMI.

Home Price: $350,000
Down Payment: $35,000
Interest Rate: 7.25 %
Loan Term: 30 years
Include taxes, insurance & HOA: Yes — show full PITI
Property Tax: $4,200 /yr
Homeowners Insurance: $1,700 /yr
HOA Dues: $0 /mo

Monthly Payment: $2,771.77

$500K home, 20% down, 15y at 6.5%$500,000 · $100,000 → $3,484.43

Aggressive payoff: $500,000 home with $100,000 down on a 15-year fixed at 6.50% APR, principal & interest only.

Home Price: $500,000
Down Payment: $100,000
Interest Rate: 6.5 %
Loan Term: 15 years
Include taxes, insurance & HOA: No — show P&I only
Property Tax: $6,000 /yr
Homeowners Insurance: $2,000 /yr
HOA Dues: $0 /mo

Monthly Payment: $3,484.43

Frequently Asked Questions

How is the monthly mortgage payment calculated?

Principal and interest use the standard amortization formula M = P · r(1+r)ⁿ / ((1+r)ⁿ − 1), where 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). When the toggle is on, monthly property tax, homeowners insurance and HOA dues are added on top, plus PMI when the down payment is under 20%.

What is PMI and when do I have to pay it?

PMI (private mortgage insurance) protects the lender when your down payment is below 20% of the home price. It is typically billed monthly as part of your mortgage payment until you reach 20% equity. This calculator assumes a typical 0.5% per year of the loan amount and adds it automatically whenever your down payment is under 20%.

Should I include property taxes and insurance in my estimate?

Yes — if you want to know what your real monthly housing cost will be. Most lenders escrow property tax and homeowners insurance into your monthly payment, and many buyers are surprised by how much they add. Toggle "Include taxes, insurance & HOA" on for a realistic full-PITI estimate.

How much should my down payment be?

A larger down payment reduces the loan amount and may avoid PMI. The right number depends on your savings, loan options, and monthly budget.

Does this include closing costs?

No. This calculator covers the recurring monthly housing payment only. Closing costs such as appraisal, title, lender fees, and transfer taxes are separate upfront expenses and vary by market.

Mortgage Calculator

$400K home, 20% down, 30y at 7%

How It Works

Examples

Frequently Asked Questions

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