Mortgage Calculator
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- Formula shown
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Results
Total monthly payment $2,547.62, including $2,022.62 principal and interest on a $320,000 loan at 6.5% for 30 years.
- Principal and interest
- $2,022.62
- Property tax
- $400.00
- Home insurance
- $125.00
| Year | Principal | Interest | Total paid | Balance |
|---|---|---|---|---|
| 1 | $3,577 | $20,695 | $24,271 | $316,423 |
| 2 | $3,816 | $20,455 | $24,271 | $312,607 |
| 3 | $4,072 | $20,200 | $24,271 | $308,535 |
| 4 | $4,345 | $19,927 | $24,271 | $304,191 |
| 5 | $4,636 | $19,636 | $24,271 | $299,555 |
| 6 | $4,946 | $19,325 | $24,271 | $294,609 |
| 7 | $5,277 | $18,994 | $24,271 | $289,332 |
| 8 | $5,631 | $18,641 | $24,271 | $283,701 |
| 9 | $6,008 | $18,264 | $24,271 | $277,694 |
| 10 | $6,410 | $17,861 | $24,271 | $271,284 |
Tax, insurance, PMI and HOA figures are your estimates. Your Loan Estimate from a lender shows the actual costs and the APR.
How to use the mortgage calculator
- Enter the home price and your down payment, either as a percentage of the price or as a dollar amount.
- Enter the interest rate from your lender's quote and choose a term from 10 to 30 years.
- Add the yearly property tax and home insurance. If you are putting down less than 20%, enter the PMI rate your lender quoted. Add HOA dues if the home has them.
- Read the total monthly payment and its breakdown, then open the yearly schedule under the results to see how the balance falls.
Mortgage payment formula
Total monthly payment = M + tax ÷ 12 + insurance ÷ 12 + PMI + HOA
PMI per month = loan × PMI rate ÷ 12
M is the monthly principal and interest, P is the amount you borrow (price minus down payment), r is the annual interest rate divided by 12, and n is the number of monthly payments (years × 12). This is the standard level-payment amortization formula, the same one behind the PMT function in a spreadsheet. Each month the interest is the balance times r, and the rest of M pays down the balance.
Worked example
Say you buy a $400,000 home with 20% ($80,000) down at 6.5% for 30 years. The loan is $320,000, r = 0.065 ÷ 12 ≈ 0.005417 and n = 360, so the principal and interest come to $2,022.62 a month. Add $4,800 a year of property tax ($400.00 a month) and $1,500 of home insurance ($125.00 a month), and the total is $2,547.62.
Over the full term you would pay $408,142 in interest. The first payment is $1,733.33 interest and only $289.28 principal. Principal doesn't overtake interest until payment 233, about 19 years 5 months in. On a 15-year term at the same rate, the payment rises to $2,787.54 but the total interest falls to $181,758.
With only 10% down, the loan becomes $360,000 and PMI at 0.5% adds $150.00 a month, for a total of $2,950.44. PMI stops by itself after 109 payments (9 years 1 month), when the balance is scheduled to reach 78% of the price. It costs $16,350 in all.
Monthly payment per $100,000 borrowed
Principal and interest only. Multiply by your loan amount in hundreds of thousands: a $250,000 loan is 2.5 times the figure shown.
| Rate | 15 years | 20 years | 30 years |
|---|---|---|---|
| 5% | $790.79 | $659.96 | $536.82 |
| 5.5% | $817.08 | $687.89 | $567.79 |
| 6% | $843.86 | $716.43 | $599.55 |
| 6.5% | $871.11 | $745.57 | $632.07 |
| 7% | $898.83 | $775.30 | $665.30 |
| 7.5% | $927.01 | $805.59 | $699.21 |
| 8% | $955.65 | $836.44 | $733.76 |
Getting an accurate estimate
- Use the rate, not the APR. The APR includes lender fees spread over the loan, so it overstates the payment if you put it in the rate field. The payment is based on the note rate.
- Check the real property tax. Rates vary a lot by county and even by school district. The current tax bill on the listing, or the county assessor's website, beats a state average. New construction is often reassessed after the sale.
- Taxes and insurance usually go through escrow. Most lenders collect them with your payment and pay the bills for you, so the total here is close to what leaves your account each month. Escrow amounts change when your tax or premium changes.
- PMI depends on credit and down payment. Quotes commonly run from a few tenths of a percent to over 1% of the loan a year. FHA loans use a different premium; see the FHA loan calculator.
- Closing costs are separate. They are paid at signing, not monthly. The down payment calculator adds them to your cash-to-close figure.
Related calculators
Not sure what price to aim for? Start with the house affordability calculator. To see every monthly payment, use the mortgage amortization calculator. To see what extra payments save, try the mortgage payoff calculator. Already have a loan? The refinance calculator works out whether a lower rate pays for its closing costs.
Frequently asked questions
What is the monthly payment on a $320,000 mortgage?
At 6.5% for 30 years, principal and interest are $2,022.62 a month. Property tax, home insurance and any PMI or HOA fees come on top: with $4,800 a year of tax and $1,500 of insurance, the total is about $2,547.62.
How is a mortgage payment calculated?
The principal-and-interest payment is M = P × r(1 + r)^n ÷ ((1 + r)^n − 1), where P is the loan amount, r is the annual rate divided by 12 and n is the number of monthly payments. Taxes, insurance, PMI and HOA dues are then added to get the full monthly cost.
When does PMI go away?
Under the US Homeowners Protection Act, borrower-paid PMI on a conventional loan ends automatically when the balance is scheduled to reach 78% of the original home value, or at the midpoint of the loan term if that comes first. You can ask the lender to cancel it once you reach 80%. With 10% down at 6.5% for 30 years, that automatic drop-off comes after 109 payments, about 9 years and 1 month.
Should I choose a 15-year or 30-year mortgage?
A 15-year loan costs more each month but far less overall. On $320,000 at 6.5%, the payment rises from $2,022.62 to $2,787.54, but total interest falls from about $408,000 to about $182,000. Fifteen-year rates are usually lower too, which widens the gap.
Does this mortgage calculator include closing costs?
No. Closing costs are paid once at signing, not monthly, so they are not part of the payment. Use the down payment calculator to add closing costs to the cash you need, and check the Loan Estimate from your lender for the exact figures.