How to use
- Enter the home price, your down payment (% or amount), the rate and the term.
- Add yearly property tax and home insurance, plus PMI and HOA dues if they apply.
- See your monthly payment broken down line by line.
- Optional: add an extra monthly payment to see the time and interest you save.
Mortgage payment formula
P&I = L × r × (1 + r)^n ÷ ((1 + r)^n − 1)
Monthly payment = P&I + tax ÷ 12 + insurance ÷ 12 + PMI + HOA
- L is the loan: home price minus down payment.
- r is the monthly rate: yearly rate ÷ 12 ÷ 100.
- n is the number of monthly payments: years × 12.
Tax and insurance are usually collected into an escrow account with each payment.
Example
$400,000 home, 20% down, 6.5% for 30 years:
- Loan = $320,000
- Principal and interest = $2,022.62
- Tax $4,800 a year = $400.00; insurance $1,500 a year = $125.00
- Monthly payment = $2,547.62, with $408,140.64 interest over 30 years
Paying $200 extra a month clears it in 23 years 5 months and saves $105,427.85 in interest.
Principal and interest per $100,000 borrowed
| 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 |
For a $300,000 loan, multiply by 3.
PMI: when it starts and stops
- Starts: a conventional loan usually needs PMI when you put down less than 20%.
- Stops: automatically when your balance is scheduled to reach 78% of the home’s original value.
- Example: with 10% down on the home above and PMI at 0.5% a year, PMI is $150.00 a month for 109 payments.
How we model PMI and rounding
PMI is a yearly % of the original loan, paid monthly. We stop it with the payment that brings the scheduled balance to 78% of the price, and never after the loan’s halfway point.
You can ask your servicer to cancel it earlier, at 80%. FHA and VA loans follow different rules.
Each payment is rounded to the cent, so the last one is adjusted slightly. Some textbooks round payments up to the next cent instead.
No tax, insurance or PMI? The loan calculator works for any loan in any currency.