Mortgage Calculator

The mortgage payment most calculators produce is principal and interest only, and it is routinely a third smaller than what actually leaves the account each month. Property tax, homeowner insurance, HOA dues and mortgage insurance are all part of a real housing payment, and most are collected by the lender in the same transfer.

This calculator computes all of them. It also reports total interest across the life of the loan, which is the number that makes a rate difference feel real rather than abstract.

Result

Total monthly payment

$2,469

Principal and interest

$1,919

Property tax: $400
Home insurance: $150
HOA dues: $0
Mortgage insurance: $0
Loan amount: $320,000
Loan to value: 80%
Total interest over the term: $370,682
Total paid: $690,682

Loan amount is 320000 after a down payment of 20% of the purchase price.

Yearly amortization summary

Year	Principal paid	Interest paid	Remaining balance
1	$3,930	$19,093	$316,070
2	$4,172	$18,851	$311,898
3	$4,429	$18,593	$307,469
4	$4,703	$18,320	$302,767
5	$4,993	$18,030	$297,774
6	$5,300	$17,722	$292,473
7	$5,627	$17,395	$286,846
8	$5,975	$17,048	$280,872
9	$6,343	$16,680	$274,529
10	$6,734	$16,289	$267,794

How to use the mortgage calculator

Enter the purchase price and the down payment amount.
Enter the interest rate and the term in years.
Add annual property tax, annual homeowner insurance and monthly HOA dues.
Enter the PMI rate if the loan will start above 80% loan-to-value.

What people use this for

Working out what a house at a given price actually costs each month.
Comparing the effect of a larger down payment on the payment and on PMI.
Checking a lender’s quoted payment against the components.
Seeing total interest before committing to a thirty-year term.

Worked examples

Every figure below is produced by running this calculator against the example inputs, so the numbers always match the tool.

A 20% down purchase

A $400,000 home with $80,000 down at 6% over 30 years, $4,800 property tax, $1,800 insurance, no HOA.

Total monthly payment: $2,469
Principal and interest: $1,919
Total interest over the term: $370,682

The same home with 5% down

A $20,000 down payment, which puts the loan above 80% LTV and adds mortgage insurance.

Total monthly payment: $2,987
Mortgage insurance: $158
Loan to value: 95%

How a mortgage payment is built

Principal and interest come from the amortisation formula: the payment is fixed, and the split between principal and interest changes every month as the balance falls. Property tax and insurance are annual amounts divided by twelve and usually collected into an escrow account by the lender.

Mortgage insurance is added when the loan starts above 80% of the property value. It protects the lender rather than the borrower, and most lenders remove it once the balance falls to 80% - which is worth tracking, because it does not always happen automatically.

Why total interest matters more than the rate

A rate difference of half a point sounds small. On a $320,000 loan over thirty years it is roughly thirty-five thousand dollars, which is the number worth carrying into a rate conversation.

The same applies to the term. A fifteen-year loan has a much higher payment and dramatically less total interest, because the balance falls far faster and interest is charged on what remains.

Methodology and assumptions

What this calculator does, and what it deliberately does not do.

Principal and interest use the standard amortising payment formula at the periodic rate over the number of monthly payments.
Property tax and insurance are the annual amounts divided by twelve. PMI is applied only when the loan starts above 80% loan-to-value.
Escrow accounts, rate changes on adjustable loans and tax reassessments are not modelled.
Results are estimates. Real quotes depend on credit, income, property, loan programme and lender pricing at the time of application.
Nothing you type is transmitted or stored - the calculation runs entirely inside your browser.

This calculator is provided for informational and educational purposes only. Results are estimates and may not reflect actual rates, fees, taxes, or market conditions.

This website is not a lender, a mortgage broker or a financial adviser. It does not originate loans, does not accept applications and does not forward your details to anyone.

Actual loan terms depend on credit history, income, the property, the loan programme and lender pricing at the time of application. Only a lender can tell you what you qualify for.

Frequently asked questions

Is the payment my lender quotes the same as this?

It should be close on principal and interest. Escrow amounts frequently differ because lenders use assessed values and their own insurance estimates rather than the figures you enter.

When does PMI come off?

Usually when the balance reaches 80% of the original value, and automatically at 78% in many jurisdictions. Reaching it early through extra payments often requires a written request.

Should I include HOA dues?

Yes if the property has them. They are not part of the mortgage but they are part of the monthly housing cost, and lenders include them in affordability calculations.

Does this account for tax deductions?

No. Whether mortgage interest is deductible, and by how much, depends on jurisdiction and individual circumstances. Nothing here is tax advice.

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