Mortgage Payment Calculator
See your true monthly payment — principal, interest, taxes, insurance, HOA, and PMI — plus a full amortization schedule. The rate field pre-fills with the latest Freddie Mac survey average (6.76%).
How Your Monthly Payment Breaks Down
A mortgage payment has up to five parts, often called PITI plus dues. Principal is the portion of your payment that reduces the loan balance; early in the loan it is small, because interest is charged on the full balance. Interest is the lender's charge, calculated monthly on the remaining balance — on a 30-year loan you pay more interest than principal for the first several years. Taxes and insurance are usually collected with the payment and held in escrow, and PMI applies when you put less than 20% down.
That front-loaded interest is why extra principal payments early in the loan save so much: a payment straight to principal in year one removes every future interest charge it would have carried.
Frequently Asked Questions
How is a monthly mortgage payment calculated?
Principal and interest are calculated with the standard amortization formula: loan amount times the monthly interest rate, divided by the factor that spreads repayment evenly across the loan term. Property taxes, homeowners insurance, HOA dues, and PMI are then added on top — they don't go to the lender's loan balance but they are part of your true monthly cost.
What is PMI and when do I pay it?
Private Mortgage Insurance is required on conventional loans when your down payment is less than 20% of the home price. It typically costs between 0.3% and 1.5% of the loan amount per year, added to your monthly payment. It can be removed once you reach 20% equity.
15-year vs 30-year mortgage: which should I choose?
A 15-year fixed has a lower rate and dramatically less total interest, but a higher monthly payment. A 30-year fixed maximizes affordability and cash flow flexibility. A common middle path is taking the 30-year and paying extra principal when you can.