Mortgages
Mortgage Calculator
Estimate your total monthly mortgage payment — principal, interest, property taxes, home insurance, PMI, and HOA fees. Adjust the home price, down payment, rate, and term to see how each choice changes your payment and the total interest you'll pay over the life of the loan.
Formula shown below · Tested against worked examplesHow we verify
20% or more avoids private mortgage insurance (PMI).
Charged on the loan amount while your loan-to-value is above 80%.
Total monthly payment: $2,572.62
Total monthly payment
$2,572.62
- Principal & interest
- $2,022.62
- Property tax
- $400.00
- Home insurance
- $150.00
- Loan amount
- $320,000
- Total interest over the loan
- $408,141
Amortization by year
| Year | Principal paid | Interest paid | Remaining balance |
|---|---|---|---|
| 1 | $3,577 | $20,695 | $316,423 |
| 2 | $3,816 | $20,455 | $312,607 |
| 3 | $4,072 | $20,200 | $308,535 |
| 4 | $4,345 | $19,927 | $304,191 |
| 5 | $4,636 | $19,636 | $299,555 |
| 6 | $4,946 | $19,325 | $294,609 |
| 7 | $5,277 | $18,994 | $289,332 |
| 8 | $5,631 | $18,641 | $283,701 |
| 9 | $6,008 | $18,264 | $277,693 |
| 10 | $6,410 | $17,861 | $271,283 |
| 11 | $6,839 | $17,432 | $264,444 |
| 12 | $7,297 | $16,974 | $257,146 |
| 13 | $7,786 | $16,485 | $249,360 |
| 14 | $8,308 | $15,964 | $241,053 |
| 15 | $8,864 | $15,407 | $232,189 |
| 16 | $9,458 | $14,814 | $222,731 |
| 17 | $10,091 | $14,180 | $212,640 |
| 18 | $10,767 | $13,505 | $201,873 |
| 19 | $11,488 | $12,784 | $190,385 |
| 20 | $12,257 | $12,014 | $178,128 |
| 21 | $13,078 | $11,193 | $165,050 |
| 22 | $13,954 | $10,317 | $151,096 |
| 23 | $14,889 | $9,383 | $136,207 |
| 24 | $15,886 | $8,386 | $120,321 |
| 25 | $16,950 | $7,322 | $103,372 |
| 26 | $18,085 | $6,187 | $85,287 |
| 27 | $19,296 | $4,976 | $65,991 |
| 28 | $20,588 | $3,683 | $45,403 |
| 29 | $21,967 | $2,304 | $23,436 |
| 30 | $23,436 | $833 | $0 |
Compare scenariosTry three values of one input
| Home price | |||
|---|---|---|---|
| Total monthly payment | $2,319.79 | $2,572.62+$252.83 | $2,975.44+$655.65 |
| Principal & interest | $1,769.79 | $2,022.62+$252.83 | $2,275.44+$505.65 |
| Loan amount | $280,000 | $320,000+$40,000 | $360,000+$80,000 |
| Total interest over the loan | $357,125 | $408,141+$51,016 | $459,164+$102,039 |
| PMI | — | — | $150.00+$150.00 |
Every other input stays at the value you set above — currently $400,000 for home price. Differences are measured against the first column.
Saved scenariosSave this calculation
Saved in this browser only — no account, and nothing is sent to us. Clearing your browser data deletes them.
How this calculator works
Principal and interest come from the standard fully-amortizing loan formula (the same math lenders and Excel's PMT function use). All amounts are computed in exact cents; the final payment absorbs rounding so the schedule sums precisely to your loan amount.
PMI is estimated as an annual percentage of the loan amount, applied while loan-to-value exceeds 80%. Property tax and insurance are your yearly inputs divided by twelve — actual escrow payments can vary slightly as your servicer trues up the account.
This tool provides educational estimates, not a loan offer. Your actual rate and costs depend on your credit profile, location, lender fees, and market conditions.
Formula
M = P × i(1+i)ⁿ ÷ ((1+i)ⁿ − 1)
Total monthly = M + tax÷12 + insurance÷12 + PMI- M
- Monthly principal and interest
- P
- Loan amount — price minus down payment
- i
- Monthly rate: annual rate ÷ 12
- n
- Number of monthly payments: years × 12
This is the standard fully-amortising payment, identical to Excel's PMT. When the rate is zero the expression is undefined and the payment is simply P ÷ n. PMI applies while the loan exceeds 80% of value. Amounts are computed in exact cents, with the final payment absorbing rounding so the schedule sums precisely.
What this assumes
- A fixed rate for the whole term. An adjustable-rate loan behaves differently once its fixed period ends.
- Property tax and insurance are your yearly figures divided by twelve. A real escrow account trues up annually, so your servicer's number will drift from this one.
- PMI applies while the loan exceeds 80% of the purchase price, and stops when it falls below. It is estimated as a flat annual percentage of the loan.
- No HOA dues, closing costs or maintenance. Those are real costs of owning, and none of them are part of a mortgage payment.
What changes this number
- Interest rate
- The largest single lever. Half a percentage point on a $300,000 loan moves the payment by roughly $100 a month and the lifetime interest by tens of thousands.
- Term length
- A 15-year loan carries a lower rate and roughly double the principal repayment each month. It cuts total interest sharply while raising the payment.
- Down payment
- Works twice: every dollar down is a dollar not financed, and crossing 20% removes PMI entirely.
- Property tax rate
- Varies by more than a factor of ten between states. On an identical house it can swing the payment by several hundred dollars.
A worked example
Take the first home: $300k, 10% down, 6.5% scenario. These figures are produced by the calculator above, not written alongside it, so they always match what the tool returns.
What you enter
- Home price
- $300,000
- Down payment
- $30,000
- Interest rate
- 6.5%
What it returns
- Total monthly payment
- $2,369.08
- Principal & interest
- $1,706.58
- Property tax
- $400.00
- Home insurance
- $150.00
- PMI
- $112.50
Sources
This calculator uses no external data — the result follows entirely from the formula above and the values you enter, so there is nothing to cite beyond the arithmetic.
Calculator last reviewed August 8, 2026. How we verify
Try an example
Frequently asked questions
How is a monthly mortgage payment calculated?
The principal-and-interest portion uses the standard amortization formula: M = P × r(1+r)^n / ((1+r)^n − 1), where P is the loan amount, r the monthly interest rate, and n the number of monthly payments. Property taxes, home insurance, PMI, and HOA fees are then added to get your full monthly housing cost.
What is PMI and when do I have to pay it?
Private mortgage insurance protects the lender when your down payment is below 20% of the home price. It typically costs 0.2%–1.5% of the loan amount per year and can be removed once you reach 20% equity — this calculator applies it automatically whenever your loan-to-value ratio is above 80%.
How much house can I afford?
A common guideline is to keep your total housing payment below 28% of your gross monthly income, and all debt payments below 36%. Lenders will compute both ratios. Use the payment this calculator produces and compare it to your monthly income to sanity-check a price range.
Should I choose a 15-year or 30-year term?
A 15-year loan carries a higher monthly payment but a lower rate and far less total interest — often less than half. A 30-year loan maximizes flexibility with a lower required payment; you can still pay it like a 15-year loan when cash flow allows. Compare both terms here before deciding.
Does this calculator include property taxes and insurance?
Yes. Enter your yearly property tax and home insurance amounts and the calculator spreads them monthly, the way an escrow account would. Local taxes vary widely — your county assessor's website lists the exact rate for your area.
How much is the monthly payment on a $450,000 mortgage?
With 20% down ($90,000) at 6.5% over 30 years, principal and interest come to $2,275.44 a month. Adding typical property tax and insurance brings the full payment to about $2,825.44. Your own figure moves with your rate, your local tax rate and whether PMI applies.
What does a $300,000 house cost per month compared with a $500,000 one?
At 20% down: $300,000 at 6.5% is about $2,066.96 a month all in, and $500,000 at 7% is about $3,211.21. Note that both the price and the rate moved there — a two-thirds larger house at a half-point higher rate costs about 55% more per month.
This calculator helps answer
Can I afford this house?
Work out what a home actually costs you each month — payment, taxes, insurance, PMI — and whether a lender would approve it. Four calculators, in the order they matter.
Should I rent or buy?
Compare the full cost of owning against renting over your actual time horizon, including the costs of buying and selling that make short stays expensive.
Should I refinance my mortgage?
The break-even test everyone teaches can approve a refinance that costs you more than doing nothing. Here is the comparison that actually decides it.
Read more about this
How Much House Can You Afford? The 28/36 Rule Explained
Lenders decide how much house you can afford with two ratios: housing costs under 28% of income, and total debt under 36%. Here is how the 28/36 rule works, why your down payment matters twice, and how to find your real budget.
15-Year vs. 30-Year Mortgage: How to Choose
A 15-year mortgage costs far less interest and builds equity fast; a 30-year keeps the monthly payment low and flexible. Here's how to weigh the trade against your budget and goals — and why the middle path often wins.
Should You Refinance Your Mortgage?
Refinancing can save hundreds a month — or quietly cost you more by resetting the clock. The deciding number is your break-even point. Here's when refinancing makes sense and when it doesn't.
Fixed vs. Adjustable-Rate Mortgage: Which Should You Choose?
A fixed-rate mortgage locks your payment for life; an ARM starts lower but can rise later. The choice hinges on how long you'll keep the loan and your tolerance for risk. Here's how to decide.
How Credit Scores Work (and How to Improve Yours)
Your credit score summarizes how reliably you repay debt and shapes the rates you're offered. Here are the five factors that build it, the fastest levers to raise it, and the myths to ignore.
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Disclaimer: DayCents provides this calculator for educational purposes only. Results are estimates based on your inputs and the stated assumptions — they are not financial advice, a quote, or an offer of credit. Consult a qualified financial professional before making major money decisions.