Use this mortgage calculator to estimate your full monthly housing payment, not just principal and interest.
Lenders and listing sites often quote only the principal and interest on a loan, but your real monthly cost also includes property taxes, homeowners insurance, and sometimes HOA dues. This calculator adds them together so you can see what owning a home would actually cost each month, along with a year-by-year amortization schedule.
How to use this calculator
Home price. Enter the purchase price you’re considering. If you’re still shopping, try a few prices to see how the payment changes.
Down payment. Enter the cash you’ll put down. The hint below the field shows it as a percentage of the price. If you put down less than 20%, the calculator reminds you that most conventional lenders will require private mortgage insurance (PMI), which isn’t included in the estimate.
Interest rate. Enter the annual rate from a lender quote or Loan Estimate. Rates depend on your credit, down payment, loan type, and the market on the day you lock, so use a real quote when you have one rather than a figure you saw advertised.
Loan term. Enter the length of the loan in years. Thirty and fifteen years are the most common terms. A shorter term raises the payment but cuts total interest sharply; our 15-year vs. 30-year mortgage guide compares them.
Property tax rate. Enter your annual property tax as a percentage of the home’s price. Rates vary widely by state, county, and city. You can estimate it by dividing the annual tax shown on a home’s listing by its price, or check your county assessor’s or treasurer’s website.
Home insurance. Enter your expected annual homeowners insurance premium. An insurance agent can quote a specific property, and premiums vary with location, home age, and coverage.
HOA dues. If the home is in a community with a homeowners association, enter the monthly dues. The listing or the seller’s agent can tell you the current amount. Otherwise leave it at $0.
How it’s calculated
First, the calculator subtracts your down payment from the price to get the loan amount. It then finds the monthly principal and interest payment with the standard amortization formula, using a monthly rate equal to the annual rate divided by 12:
Loan amount L = home price − down payment
Monthly rate r = annual rate ÷ 12 (as a decimal)
Payments n = years × 12
Principal & interest = L × r ÷ (1 − (1 + r)^−n)
Property tax = home price × tax rate ÷ 12
Insurance = annual premium ÷ 12
Total monthly = P&I + tax + insurance + HOAThe schedule below the results applies each payment month by month: interest is charged on the remaining balance, and the rest pays down the loan.
Keep these assumptions in mind:
- The rate is fixed for the entire term.
- Property tax is based on the purchase price. Your actual bill depends on your local assessed value and any exemptions.
- Taxes, insurance, and HOA dues stay the same every year. In reality they often rise.
- PMI, flood insurance, and closing costs aren’t included.
Many lenders collect property tax and insurance each month through an escrow account and pay the bills for you when they’re due. Even if you pay them yourself, budgeting for them monthly, as this calculator does, keeps a large annual bill from catching you off guard.
Example
With the default inputs, you’re buying a $400,000 home with $80,000 down (20%) at 6.5% for 30 years, with a 1.1% property tax rate, $1,800 a year for insurance, and no HOA.
| Result | Amount |
|---|---|
| Loan amount | $320,000 |
| Principal & interest | $2,022.62 |
| Property tax | $366.67 |
| Insurance | $150.00 |
| Estimated monthly payment | $2,539.28 |
| Total interest over 30 years | $408,142 |
Because the down payment is exactly 20%, the PMI notice doesn’t appear. Lower the down payment to $60,000 (15%) and it will, since a conventional loan would likely require PMI on top of the payment shown.
Open the yearly schedule and you’ll see how front-loaded interest is on a long loan. In year one, you pay $20,695 in interest and only $3,577 in principal, ending the year owing $316,423.
Small changes add up over 30 years:
- Shorter term: a 15-year loan at the same rate raises principal and interest to $2,787.54 (a total payment of $3,304.21) but cuts total interest to $181,758.
- Lower rate: at 6% instead of 6.5%, principal and interest falls to $1,918.56, and total interest drops to $370,682.
- Extra payments: paying an extra $100 a month toward principal on the 6.5% loan pays it off in 26 years 2 months and lowers total interest to $346,444, a saving of about $61,700.
This calculator doesn’t have an extra-payment field, so the last figure comes from the same amortization math run separately. To test extra payments yourself, enter your loan amount, rate, and term in months in the loan calculator.
Tips to lower your monthly payment
- Put more down. A larger down payment shrinks the loan and, at 20% or more, usually avoids PMI on a conventional loan. Our guide to what PMI is and how to get rid of it explains how it works.
- Strengthen your credit first. Borrowers with higher credit scores are generally offered lower rates, and even half a point makes a noticeable difference over decades.
- Get quotes from several lenders. Compare Loan Estimates side by side on the same day, looking at the rate, the APR, and the closing costs.
- Shop for insurance. Premiums for the same home can differ between insurers. Ask about raising your deductible or bundling policies.
- Check your tax assessment. If your home’s assessed value seems too high, most local governments have an appeal process, and some offer homestead exemptions for primary residences.
- Stay within a comfortable price range. The surest way to lower the payment is a lower price. See how much house you can afford before you start touring.
Related guides
- How Much House Can I Afford?
- 15-Year vs. 30-Year Mortgage: Which Is Better?
- What Is PMI and How Do You Get Rid of It?
- How Loan Amortization Works (With Examples)
Frequently asked questions
What does PITI mean?
PITI stands for principal, interest, taxes, and insurance, the four main pieces of a typical monthly mortgage payment. Lenders often look at PITI, plus any HOA dues and mortgage insurance, when deciding how much they're willing to lend you.
Will my mortgage payment ever change?
On a fixed-rate loan, the principal and interest portion stays the same for the life of the loan. If your taxes and insurance are paid through an escrow account, that part can rise or fall as your tax bill and premiums change, so your total payment can still move from year to year.
Does this calculator include closing costs?
No. Closing costs are paid upfront, or sometimes rolled into the loan, and aren't part of the monthly figure shown here. Your lender's Loan Estimate lists them, and it's wise to budget for them separately from your down payment.
Can I use this for a refinance?
Yes. Enter your home's current value as the home price and your equity as the down payment, so the loan amount matches your new balance. Then compare the result with your current payment, keeping in mind that refinancing has its own closing costs.
This content is for educational purposes only and isn't financial advice. Calculator results are estimates based on the numbers you enter. For decisions about your situation, consider talking with a qualified professional. Read our full disclaimer.