Mortgage Payment Calculator: PITI, PMI & Extra Payments
Calculate your monthly mortgage payment with taxes, insurance, PMI and HOA, see an amortization schedule and what extra payments save.
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⚠️ Not financial advice. Results are illustrative only and should not be used as the basis for any investment, tax, or financial decision. Consult a qualified financial adviser or chartered accountant before acting on any figure shown.
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What goes into a monthly mortgage payment
The loan payment is principal and interest, worked out so the balance reaches zero at the end of the term. Most buyers also pay property tax and homeowners insurance each month through an escrow account, which together with the loan payment is called PITI (principal, interest, taxes and insurance). Add HOA dues if there are any, and private mortgage insurance (PMI) if your down payment is under 20%.
The formula
Principal and interest = loan × r ÷ (1 − (1 + r)−n), where r is the annual rate divided by 12 and n is the number of monthly payments. For a $300,000 loan at 6.5% over 30 years the payment is $1,896.20. Over 360 payments that is $682,633, of which $382,633 is interest. In the first month $1,625.00 goes to interest and only $271.20 reduces the loan.
Payment on a $300,000 loan at different rates
| Rate | 30 years | 15 years |
|---|---|---|
| 5.5% | $1,703.37 | $2,451.25 |
| 6% | $1,798.65 | $2,531.57 |
| 6.5% | $1,896.20 | $2,613.32 |
| 7% | $1,995.91 | $2,696.48 |
| 7.5% | $2,097.64 | $2,781.04 |
Principal and interest only. A one-point higher rate adds about $201.44 a month at 30 years here.
How the down payment changes it ($400,000 home, 6.5%, 30 years)
| Down payment | Loan | Principal and interest | PMI? |
|---|---|---|---|
| 5% ($20,000) | $380,000 | $2,401.86 | Usually |
| 10% ($40,000) | $360,000 | $2,275.44 | Usually |
| 20% ($80,000) | $320,000 | $2,022.62 | No |
With 20% down on $400,000 the loan is $320,000. Principal and interest is $2,022.62; with $4,800 a year of property tax and $1,500 a year of insurance the full payment is $2,547.62 a month.
PMI: when it applies and when it ends
Lenders usually require private mortgage insurance on a conventional loan when you put down less than 20%. The Consumer Financial Protection Bureau explains that you can ask your servicer to cancel it when the balance is scheduled to reach 80% of the home's original value, and that the servicer must end it automatically at 78%. “Original value” is generally the lower of the purchase price and the appraised value. On the $360,000 loan above (10% down) at a 0.5% PMI rate, PMI is $150.00 a month. It ends after 95 payments (7 years 11 months) if you cancel at 80%, costing $14,250, or after 109 payments (9 years 1 month) if it ends automatically at 78%, costing $16,350.
What extra payments do
Extra money goes to principal, so every later month is charged interest on a smaller balance. An extra $200 a month on the $300,000 loan above pays it off in 277 payments (23 years 1 month) instead of 360, 6 years 11 months sooner, and cuts total interest from $382,633 to $279,185, a saving of $103,449. Check that your lender applies extra payments to principal and has no prepayment penalty.
What is not included
This is a fixed-rate estimate. It leaves out closing costs, points, adjustable-rate changes, escrow adjustments and the insurance premiums and fees of FHA, VA and USDA loans. Your lender's Loan Estimate has the exact figures. To see how much you take home each month, use the paycheck calculator, and to check your loan-to-value ratio see the loan-to-value calculator.
Frequently asked questions
- How is a monthly mortgage payment calculated?
- The principal and interest payment is loan × r ÷ (1 − (1 + r)^−n), where r is the annual rate divided by 12 and n is the number of monthly payments. Example: a $300,000 loan at 6.5% for 30 years has a payment of $1,896.20. Over 360 payments that adds up to $682,633, of which $382,633 is interest. In the first month $1,625.00 of the payment is interest and only $271.20 pays down the loan; the split shifts toward principal over time.
- What does a monthly mortgage payment include (PITI)?
- PITI stands for principal, interest, taxes and insurance: the loan payment plus your property tax and homeowners insurance, usually collected in escrow, and any HOA dues or mortgage insurance on top. Example: a $400,000 home with 20% down ($80,000) leaves a $320,000 loan; at 6.5% for 30 years the principal and interest is $2,022.62. With $4,800 a year of property tax ($400 a month) and $1,500 a year of insurance ($125 a month), the total is $2,547.62 a month.
- When do I need PMI, and when does it end?
- Private mortgage insurance usually applies to a conventional loan when your down payment is under 20%. According to the CFPB, you can ask your servicer to cancel it when the balance is scheduled to reach 80% of the home's original value, and the servicer must end it automatically when the balance is scheduled to reach 78%. Example: a $400,000 home with 10% down ($40,000) is a $360,000 loan. At 0.5% a year PMI is $150 a month. The balance reaches 80% ($320,000) after 95 payments (7 years 11 months), so you pay $14,250 of PMI if you cancel then, or $16,350 over 109 payments (9 years 1 month) if it ends automatically at 78% ($312,000).
- How much do extra mortgage payments save?
- Extra money goes straight to principal, so it cuts the interest charged on every later month. Example: on the $300,000, 6.5%, 30-year loan, an extra $200 a month pays the loan off in 277 payments (23 years 1 month) instead of 360, which is 6 years 11 months sooner. Total interest falls from $382,633 to $279,185, a saving of $103,449. Check that your lender applies extra payments to principal and does not charge a prepayment penalty.
- How does the down payment change the monthly payment?
- A bigger down payment means a smaller loan, a lower payment and no PMI at 20% or more. On a $400,000 home at 6.5% for 30 years, principal and interest is $2,401.86 with 5% down, $2,275.44 with 10% down and $2,022.62 with 20% down. The first two would also carry PMI. The rate matters too: on $300,000 over 30 years, 6.5% costs $1,896.20 a month and 7.5% costs $2,097.64, which is $201.44 more.
- What does this mortgage calculator not include?
- It covers a fixed-rate loan with a constant rate and payment. It does not include closing costs, points, rate changes on an adjustable-rate loan, escrow adjustments when taxes or insurance change, or the mortgage insurance premiums and fees of FHA, VA and USDA loans, which work differently from conventional PMI. Treat the result as an estimate and use your lender's Loan Estimate for the exact figures.
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