Mortgage Calculator

Mortgage Calculator

Estimate your monthly mortgage payments including principal, interest, taxes, and insurance.

Loan Details

Loan amount, rate and term are all required. Blank property tax, insurance and PMI count as $0 - the calculator does not estimate them for you.

Annual nominal rate (APR excluding fees). Enter 0 only if the loan really is interest-free.

1 to 50 years.

Payment Breakdown

Your estimated monthly mortgage payment (auto-updates)

No payment to show yet

Enter a loan amount to see your payment.

How to calculate a mortgage payment with PMI, taxes and insurance

A monthly mortgage payment with taxes and insurance is principal and interest on the loan plus one twelfth of the yearly property tax, homeowners insurance and mortgage insurance. Private mortgage insurance (PMI) usually applies to a conventional loan with less than 20 percent down and typically costs 0.3 to 1.5 percent of the loan per year.

The mortgage payment formula

Monthly P&I = L × r × (1 + r)^n ÷ ((1 + r)^n minus 1)

Total monthly payment = P&I + (annual tax + annual insurance + annual PMI) ÷ 12

L is the loan amount, r is the annual rate divided by 12, and n is the number of monthly payments (360 for a 30 year loan).

How to estimate PMI before you enter it

The calculator does not estimate PMI for you, and a blank PMI field counts as zero. Estimate it in three steps:

  1. Divide the loan amount by the purchase price to get your loan-to-value ratio. Conventional lenders typically charge PMI above 80 percent.
  2. Pick a rate between about 0.3 and 1.5 percent a year. Strong credit with 15 percent down sits near the bottom, a lower score with 3 percent down near the top.
  3. Multiply the loan amount by that rate and enter the yearly dollar figure in the Annual PMI field.

Swap in the premium from your lender's loan estimate once you have it. The down payment calculator prefills a typical PMI rate for each loan-to-value band if you want a starting point. FHA loans charge a mortgage insurance premium (MIP) instead, commonly 0.55 percent a year on a 30 year loan with 3.5 percent down.

Worked example

Take a 400,000 dollar home bought with 10 percent down, so the loan is 360,000 dollars at 6.5 percent for 30 years. Principal and interest come to 2,275 dollars a month. Assume PMI at 0.5 percent: 360,000 times 0.005 is 1,800 dollars a year, the number you type into the Annual PMI field (150 dollars a month). Add property tax of 6,000 dollars a year (500 a month) and insurance of 1,800 dollars a year (150 a month), and the total monthly payment is about 3,075 dollars.

Amortization: why early payments are mostly interest

Every payment is the same size, but the split changes. In the first month of the example, interest is 360,000 times 6.5 percent divided by 12, or 1,950 dollars, so only about 325 dollars goes to principal. As the balance falls, more of each payment goes to principal. Over 30 years this loan costs about 459,160 dollars in interest.

Amortization also decides when PMI ends. On a conventional loan you can typically ask to cancel it at 80 percent of the original value and it ends automatically at 78 percent. Here that is 320,000 dollars, reached around payment 95 (just under 8 years), and 312,000 dollars, reached around payment 109 (about 9 years).

How to read the result

The large figure is your full monthly payment to the lender: the number to test against your income or, on a rental, against the rent.

The 30 year total holds tax, insurance and PMI flat. Tax and insurance usually rise, while PMI usually stops near 20 percent equity. In the example the total includes 54,000 dollars of PMI (1,800 a year for 30 years), when the real figure would be closer to 16,350 dollars if PMI ends around payment 109.

Frequently asked questions

Does this mortgage calculator include PMI?

Yes, when you enter it. The Annual PMI field adds your yearly premium to the monthly payment, divided by 12. The calculator does not estimate PMI on its own and a blank field counts as zero, so enter an estimate whenever you put less than 20 percent down on a conventional loan.

How much is PMI per month?

Multiply the loan amount by the annual PMI rate and divide by 12. At 0.5 percent on a 360,000 dollar loan that is 150 dollars a month. Rates typically range from about 0.3 to 1.5 percent of the loan per year, and your lender's loan estimate gives the exact figure.

When does PMI go away?

On a conventional loan you can typically ask the lender to cancel PMI once the balance is scheduled to reach 80 percent of the home's original value, and it ends automatically at 78 percent if you are current on payments. FHA mortgage insurance follows different rules and often lasts for the life of the loan when the down payment is under 10 percent.

What is PITI?

PITI stands for principal, interest, taxes and insurance, the four parts of a typical monthly mortgage payment. Many lenders collect the tax and insurance portion into an escrow account. PMI, when it applies, is usually collected in the same payment.

Can I use this mortgage calculator for an investment property?

Yes. Enter the investor loan terms plus the property's tax and insurance. Investment property loans typically need a larger down payment, often 15 to 25 percent, and usually carry a higher rate than a loan on a home you live in.

Related calculators