Mortgage Calculator
See the real monthly cost of a home — not just principal and interest, but property taxes, homeowners insurance, HOA dues and PMI when your down payment is under 20%.
The core of a mortgage payment is principal and interest (P&I), calculated with the standard amortization formula on the loan amount — the home price minus your down payment. A 30-year term spreads the loan over 360 fixed payments; a 15-year term raises the payment but slashes total interest.
Lenders usually collect property tax and homeowners insurance in escrow, so the true monthly cost includes them. This tool estimates tax from the annual rate you enter (the US average is roughly 1.1% of home value) and adds private mortgage insurance — estimated at 0.5% of the loan per year — when the down payment is below 20%.
Worked examples
Typical starter home
$400,000 home, 20% down, 6.5% for 30 years: P&I on the $320,000 loan.
→ $2,022.62 / month P&I
Low down payment
The same home with 5% down adds PMI of about $158/month until you reach 20% equity.
→ PMI applies under 20%
15-year trade-off
A $320,000 loan at 6% for 15 years costs about $2,700/month — but saves over $200,000 in interest versus 30 years.
→ Higher payment, far less interest