Use this calculator to estimate your total monthly mortgage payment. Enter your home price, down payment, interest rate, and loan term to see your principal and interest payment, plus an estimate of property tax, insurance, HOA, and PMI if applicable. The amortization breakdown shows exactly how each payment splits between principal and interest over the life of your loan.
The estimate includes principal and interest (P&I), property tax, homeowners insurance, HOA fees if applicable, and PMI if your down payment is less than 20%. Lenders often refer to the full amount as PITI — principal, interest, taxes, and insurance.
The P&I payment uses the standard fixed-rate amortization formula. For a $320,000 loan at 6.75% for 30 years, the monthly P&I is approximately $2,076. Each payment covers that month's interest on the remaining balance, with the rest reducing principal.
PMI is automatically cancelled when your loan balance reaches 80% of the original home value under the Homeowners Protection Act. You can also request cancellation once you reach 80% LTV through payments or appreciation. Lenders must automatically cancel PMI at 78% LTV.
Most lenders prefer a front-end DTI (housing costs / gross income) below 28% and a back-end DTI (all debts / gross income) below 43%. FHA loans allow up to 57% back-end DTI in some cases. Lower DTI ratios typically qualify for better rates.
A 15-year loan has a higher monthly payment than a 30-year loan but significantly less total interest paid. A 30-year loan on a $320,000 balance at 6.75% costs roughly $467,000 in total P&I payments. The same loan on a 15-year term costs around $341,000 — saving over $125,000 in interest.
This calculator assumes a fixed interest rate for the full loan term. For adjustable-rate mortgages (ARMs), the payment shown reflects the initial fixed rate period. After the fixed period ends, your rate and payment will adjust based on market conditions.
On a $300,000 loan, each 0.25% change in rate affects the payment by roughly $45–$50 per month. On a $500,000 loan that's $75–$85 per month. The impact is larger on larger loan amounts and on longer loan terms, since more of the early payments go toward interest.
Escrow is a separate account your lender manages to pay property taxes and homeowners insurance on your behalf. Your monthly payment typically includes 1/12th of your annual tax and insurance bills paid into escrow, in addition to principal and interest. This is the full PITI payment shown in this calculator.
Your principal and interest payment is fixed for the life of a fixed-rate loan. However, you can reduce costs by removing PMI once you hit 20% equity, by refinancing if rates drop significantly (typically worth it if the rate drops 0.75%+ and you stay long enough to recoup closing costs), or by making extra principal payments to build equity faster.