Mortgage Calculator
Calculate your monthly mortgage payment with a detailed breakdown. See principal, interest, taxes, insurance, and more.
Monthly Payment
Total Monthly Payment
$1,817
$1,817
Per Month
Principal & Interest
Tax
Insurance
PMI + HOA
Principal & Interest
$1,517
Property Tax
$300
Home Insurance
$100
PMI + HOA
$0
Loan Summary
Loan Amount
$240,000
Total Interest
$306,108
Total Cost
$546,108
Payoff Date
Dec 2054
Amortization Schedule
| Month | Payment | Principal | Interest | Balance |
|---|
Understanding Mortgage Calculations
Monthly Payment Formula
M = P * [r(1+r)^n] / [(1+r)^n - 1]
Where M is monthly payment, P is principal (loan amount), r is monthly interest rate, and n is total number of payments.
Total Interest Paid
Total Interest = (M * n) - P
The total interest is your total payments minus the original loan amount. A shorter term means less total interest.
PMI (Private Mortgage Insurance)
PMI = 0.5% - 1% of loan annually
PMI protects lenders if you default. It's usually required when your down payment is less than 20% of the home price.
Frequently Asked Questions
Your monthly mortgage payment is calculated using the formula: M = P * [r(1+r)^n] / [(1+r)^n - 1], where M is monthly payment, P is principal (loan amount), r is monthly interest rate, and n is total number of payments. Additional costs like property tax, insurance, PMI, and HOA are added to get your total monthly payment (PITI).
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 on the loan. PMI usually costs between 0.5% to 1% of the loan amount annually. Once you reach 20% equity in your home, you can usually request to have PMI removed.
PITI stands for Principal, Interest, Taxes, and Insurance - the four components of a typical monthly mortgage payment. Principal reduces your loan balance, Interest is the cost of borrowing, Taxes are your property taxes, and Insurance includes homeowners insurance and PMI if required. Some payments also include HOA fees.
A common guideline is that your total monthly housing costs (PITI) should not exceed 28% of your gross monthly income. Your total debt payments (including mortgage, car loans, credit cards, etc.) should not exceed 36% of your gross income. Use this calculator to see if your desired home price fits within your budget.