Mortgage Calculator
Your full monthly payment — principal, interest, taxes, insurance, PMI, and HOA — plus a year-by-year amortization chart. Free, instant, no signup required.
Loan details
Loan amount: $0 · 20% down
Only applies if down payment is under 20%.
Loan type and buy/refi don't change the math below — FHA, VA, and USDA loans have their own mortgage insurance and fee rules, so treat this estimate as a conventional-loan approximation.
Total monthly payment
$0
Principal, interest, taxes, insurance, and HOA
- Loan payoff date
- —
- Total interest paid
- $0
- Down payment
- $0
- Down payment %
- 0%
- PMI
- —
- Monthly tax
- $0
- Total tax paid
- $0
- Total insurance
- $0
- Annual payment
- $0
- Total of all payments
- $0
Want your real payoff date tracked?
BudgetWise tracks your actual mortgage balance alongside the rest of your budget, so this updates itself every month.
Start freeYearly payment breakdown
How much of each year's payments goes to principal vs. interest vs. taxes, insurance, PMI, and HOA.
Remaining balance over time
Your loan balance as principal gets paid down, year by year.
How your mortgage payment is calculated
Most mortgage payments have four parts, often shortened to PITI: principal, interest, taxes, and insurance. The principal-and-interest portion is fixed for the life of a standard fixed-rate loan and is calculated with the amortization formula M = L × [r(1+r)ⁿ] / [(1+r)ⁿ − 1], where L is your loan amount, r is your monthly interest rate, and n is the total number of monthly payments.
What changes every month is the split between principal and interest — not the total. Early on, most of your payment covers interest because your balance (and therefore the interest charged on it) is at its highest. As the balance shrinks, more of each payment chips away at principal, which is exactly what the "Yearly payment breakdown" chart above shows: the green principal slice grows while the indigo interest slice shrinks, year after year.
Property tax, homeowners insurance, PMI (if applicable), and HOA dues stack on top of principal and interest for your full monthly payment. PMI is the one piece that can go away entirely — once your balance drops to 80% of your home's original value, it's no longer required, which is why the taxes-and-fees slice often gets thinner a few years into the loan.
Frequently asked questions
What's included in a mortgage payment?
A full monthly mortgage payment usually has four parts, sometimes called PITI: principal (paying down the loan balance), interest (the lender's charge for the loan), taxes (property tax, often collected monthly and held in escrow), and insurance (homeowners insurance, and PMI if your down payment is under 20%). HOA dues, if applicable, are a separate monthly cost on top of PITI.
What is PMI and when does it go away?
Private mortgage insurance (PMI) is typically required on conventional loans when your down payment is under 20% of the home's value. It protects the lender, not you, and adds a monthly cost. By federal law, lenders must automatically cancel PMI once your loan balance drops to 78% of the home's original value, and you can typically request cancellation yourself at 80%. This calculator estimates PMI dropping off at the 80% mark.
How is a mortgage payment calculated?
The principal-and-interest portion uses the standard amortization formula: M = L × [r(1+r)ⁿ] / [(1+r)ⁿ − 1], where L is the loan amount, r is the monthly interest rate, and n is the number of monthly payments. Property tax, insurance, PMI, and HOA are then added on top to get the full monthly payment.
Why does more of my payment go to interest early on?
Interest is calculated on your current balance each month, and early in the loan that balance is at its highest — so the interest portion is largest and the principal portion is smallest. As the balance shrinks, the interest charge shrinks with it and a growing share of each payment goes to principal, even though the total payment stays the same. This is normal amortization, not a sign anything is wrong.
Should I use gross or net income to decide what I can afford?
Lenders typically qualify you using gross (pre-tax) income, but budgeting your own comfort level is safer to do against net (take-home) income, since that's what actually hits your bank account. A common guideline is keeping total housing costs (PITI plus HOA) under 28% of gross monthly income.