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Monthly payment with PMI, amortization & total cost
= $40,000
PMI required (down payment < 20%)
= $400/mo
$125/mo
optional
Monthly Payment
30-year fixed · 6.8% APR · $360,000 loan (includes PMI)
Monthly Breakdown
Private Mortgage Insurance (PMI)
PMI of $150.00/mo is required because your down payment is below 20%. PMI automatically drops off after ~113 months when your loan balance reaches 78% of the home value. Total PMI cost: $16,950.
Loan Summary
Loan Amount
$360,000
Total Interest
$484,895
Total Cost
$884,895
Amortization Schedule
360 total payments| Month | Principal | Interest | Balance |
|---|---|---|---|
| 1 | $306.93 | $2,040.00 | $359,693 |
| 2 | $308.67 | $2,038.26 | $359,384 |
| 3 | $310.42 | $2,036.51 | $359,074 |
| 4 | $312.18 | $2,034.75 | $358,762 |
| 5 | $313.95 | $2,032.98 | $358,448 |
| 6 | $315.73 | $2,031.20 | $358,132 |
| 7 | $317.52 | $2,029.42 | $357,815 |
| 8 | $319.31 | $2,027.62 | $357,495 |
| 9 | $321.12 | $2,025.81 | $357,174 |
| 10 | $322.94 | $2,023.99 | $356,851 |
| 11 | $324.77 | $2,022.16 | $356,526 |
| 12 | $326.61 | $2,020.32 | $356,200 |
Estimates only. PMI rate assumed at 0.5% of loan amount per year (actual rates vary by lender, credit score, and LTV ratio). Actual payments may vary based on lender fees, escrow adjustments, and rate changes. Consult a mortgage professional for personalized advice.
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A mortgage is the most complex loan most Americans take — it includes principal and interest, but also property tax, homeowner's insurance, HOA fees, and PMI. Understanding your true monthly payment before making an offer prevents budget surprises after closing. This calculator computes your full PITI payment, complete amortization schedule, and total 30-year cost — helping you compare loan scenarios and lenders confidently.
The principal and interest portion uses the standard amortization formula: M = P × [r(1+r)^n] / [(1+r)^n − 1], where P is the loan amount (home price minus down payment), r is the monthly interest rate (annual rate ÷ 12), and n is the number of monthly payments (typically 180 for 15yr or 360 for 30yr). For a $400,000 home with 20% down ($80,000), at 7% interest for 30 years: P = $320,000, r = 0.005833, n = 360, M = $2,129/month.
Worked example (illustrative, using the calculator's defaults): $400,000 home, 10% down ($40,000), $360,000 loan at 6.8% for 30 years. Principal & interest = $2,346.93. Property tax at 1.2% = $400.00/month, insurance of $1,500/year = $125.00/month, PMI at 0.5% of the loan = $150.00/month, for a total of about $3,021.93/month. With scheduled payments only, the balance reaches 78% of the $400,000 price after payment 113 (about 9.4 years), so PMI totals about $16,950. Total interest over 30 years is about $484,895. The same loan over 15 years is $3,195.66/month P&I and about $215,219 in interest, saving roughly $269,676.
On top of P&I, the calculator adds property tax (typically 0.5-2.5% of home value annually, divided by 12), homeowner's insurance (typically 0.1-0.5% annually, divided by 12), PMI when down payment < 20% (real PMI is often 0.5-1.5% of the loan a year; this calculator uses a flat 0.5% of the original loan amount), and HOA fees if applicable. These non-P&I components are added linearly each month.
The amortization schedule shows how each payment splits between interest and principal. In the early years, interest dominates. On a $320,000 loan at 7%, the very first payment has $1,867 going to interest and only $262 to principal. Principal does not overtake interest until payment 242 (about year 20). Total interest over 30 years = $2,128.97 × 360 − $320,000 ≈ $446,428 — more than the original loan.
The rate you enter is the note rate, not the APR. Lender fees and points raise the APR but do not change this payment; they show up in closing costs instead. If your lender escrows tax and insurance, those amounts are re-estimated every year, so the tax and insurance lines can change even when P&I is fixed.
A first-time buyer in Texas considering a $350,000 home at 6.75% for 30 years needs to see if their take-home salary of $8,500/month can support the total PITI payment including 2.1% property tax.
A couple comparing a 15-year vs 30-year mortgage on $280,000 at 6% wants to see the monthly P&I difference ($2,363 vs $1,679) and total interest saved (about $179,000) with the shorter term.
A buyer putting only 10% down on a $420,000 home at 6.5-7% needs to know when PMI can be cancelled (80% of original value after roughly 8 years of scheduled payments) and what the payment drops to then.
A real estate investor evaluating a rental property at $250,000 wants the full monthly cost (mortgage + tax + insurance) to compare against expected rental income of $2,200/month.
A homeowner with 8 years left on a 30-year mortgage at 4.5% is considering refinancing to a 15-year at 6.5% — wants to compare new payment vs current payment and break-even point.
Scope note: This calculator uses fixed interest rates. Adjustable-rate mortgages (ARMs) start with a lower teaser rate and adjust after an initial period (3/1, 5/1, 7/1 ARM), which can significantly change monthly costs. Property tax rates vary by county, not just state, and increase over time. HOA fees can change annually. Closing costs (typically 2-5% of home price) are not included in this calculator. Always get a Loan Estimate from lenders, which includes all costs in a standardized format.
Disclaimer: This calculator is for informational and educational purposes only and does not constitute financial, tax, or legal advice. Results are estimates based on publicly available tax slabs and formulas. Consult a qualified Chartered Accountant, tax professional, or financial advisor for guidance specific to your situation. Built and maintained by the WOWHOW Team with 14+ years of software development experience.
Enter the home price and adjust the down payment (% or $)
Choose your loan term — 15-year or 30-year fixed
Enter the current mortgage interest rate
Add property tax rate, home insurance, and optional HOA fees
View your monthly payment breakdown and full amortization schedule instantly
About the Mortgage Calculator
The principal & interest portion is calculated using the standard amortization formula: M = P × [r(1+r)^n] / [(1+r)^n − 1], where P is the loan amount, r is the monthly interest rate (annual rate ÷ 12), and n is the total number of payments. Property tax, insurance, and HOA are added on top.
The total monthly payment includes four components: Principal & Interest (P&I), property tax (based on assessed home value and local rate), homeowner's insurance, and HOA fees if applicable. This is commonly referred to as PITI — Principal, Interest, Tax, and Insurance.
A 30-year mortgage has lower monthly payments but costs significantly more in total interest. A 15-year mortgage pays off faster and saves tens of thousands in interest, but monthly payments are higher. Use this calculator to compare both scenarios side by side.
Yes. All calculations happen entirely in your browser. No financial data is ever sent to any server.
PMI (private mortgage insurance) is usually required on a conventional loan when your down payment is under 20%. Its cost varies with credit score and down payment; this calculator uses 0.5% of the loan per year. Under the Homeowners Protection Act you can ask your servicer to cancel PMI once your balance is scheduled to reach 80% of the home's original value, and it must end automatically at 78% if you are current on payments. FHA loans use a separate mortgage insurance premium (MIP) with different rules. The calculator drops PMI at 78% of the purchase price.
Lenders use two debt-to-income (DTI) ratios: front-end ratio (housing costs ÷ gross income) should be under 28%, and back-end ratio (all debt payments ÷ gross income) should be under 43%. As a quick guide, most people can afford a home priced at 3-4x their annual gross income. Use this calculator to back-calculate: enter your budget as home price and see if the monthly payment meets the 28% front-end DTI.
Putting 20% down removes PMI and lowers your monthly payment and total interest. Keeping cash invested only wins if your after-tax investment return beats your mortgage rate plus the PMI cost, and investment returns are not guaranteed while mortgage interest is. Keep an emergency fund and closing-cost cash before stretching the down payment. This is general information, not financial advice.
The interest rate (note rate) sets your principal & interest payment. The APR (annual percentage rate) spreads lender charges such as origination fees and discount points over the loan term, so it is usually higher. Illustrative: a $360,000, 30-year loan at 6.8% with $6,000 in prepaid finance charges has an APR of about 6.97%, while the monthly P&I stays $2,347. Use APR to compare lenders and the rate to estimate the payment.
Most lenders collect property tax and homeowners insurance with your monthly payment and hold it in an escrow account, then pay those bills for you. Federal RESPA rules let the servicer keep a cushion of up to one-sixth of the year's escrow payments (about two months) and require an annual escrow analysis. If your tax bill or insurance premium goes up, your monthly payment rises even on a fixed-rate loan.
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