Mortgage Payment Calculator
Calculate your full monthly mortgage payment including principal, interest, taxes, insurance, and PMI.
Most mortgage calculators show you principal and interest only. The total monthly payment, including taxes, insurance, and PMI, is what actually hits your bank account and what you need for real budget planning. The gap between P&I and total payment is often $400–700/month and comes as a shock to first-time buyers.
PMI (Private Mortgage Insurance) is required when down payment is under 20%. It typically costs 0.5–1.5% of the loan amount annually and adds $100–400/month to your payment. It disappears when you reach 20% equity, request cancellation at that point.
Principal and interest (P&I)
The P&I payment is calculated from the loan amount (purchase price minus down payment), interest rate, and loan term using the standard amortization formula. This is the only portion that reduces the loan balance, tax and insurance payments go elsewhere.
Property taxes and insurance in escrow
Lenders typically require that property taxes and homeowners insurance be collected monthly and paid from an escrow account. This ensures the home is insured and taxes are paid, protecting the lender's collateral. Your monthly payment includes 1/12 of the annual tax and insurance amounts. If taxes or insurance increase, your monthly payment increases accordingly, this is why mortgage payments aren't truly fixed over the life of a loan.
PMI and the 20% threshold
PMI protects the lender if you default when LTV is above 80%. Typical PMI rates range from 0.5–1.5% of the loan amount annually, added monthly. This calculator estimates PMI at 0.8% annually when LTV exceeds 80%, actual rates vary by lender, loan type, and credit score. PMI is automatically canceled at 78% LTV per the Homeowners Protection Act, but you can request cancellation at 80% LTV.
Frequently asked questions
How does the interest rate affect total cost?
Significantly. On a $280,000 30-year loan: at 6%, total interest is $322,000. At 7%, it's $391,000. At 8%, it's $464,000. A 1% rate difference costs about $69,000 over 30 years. Shopping multiple lenders and improving your credit score before applying are the most impactful ways to reduce this cost.
What is a good debt-to-income ratio for a mortgage?
The standard guideline is the 28/36 rule: housing costs (PITI) should not exceed 28% of gross monthly income, and all debt payments should not exceed 36%. Lenders will often approve up to 43–45% DTI but the payment becomes harder to sustain. Use the Home Affordability Calculator to find your comfortable ceiling before shopping.