🏠Mortgage Calculator with PMI, Taxes & HOA

How your mortgage payment is calculated

A mortgage payment has two layers. The first is principal and interest (P&I), which is fixed for the life of a fixed-rate loan. The second is everything your lender collects on top: property tax, homeowners insurance, private mortgage insurance (PMI) if you put down less than 20%, and HOA dues if the property has them. Most online calculators only show P&I, which is why the number on a listing site is often $400–$900 lower than what you actually pay each month.

The P&I portion uses the standard amortization formula: M = P × r(1+r)^n / ((1+r)^n − 1), where P is the loan amount, r is the monthly interest rate (annual rate ÷ 12), and n is the number of monthly payments (years × 12). Early payments are mostly interest; later ones are mostly principal. The schedule above shows exactly how that shifts year by year.

What the inputs mean

• Home price – the purchase price, before any down payment.
• Down payment – cash you bring at closing. Under 20% usually triggers PMI. Conventional loans allow as little as 3%; FHA loans start at 3.5%.
• Interest rate – the annual rate on your loan, not the APR (APR also folds in fees). Rates vary daily and by credit score; check a current rate before relying on the result.
• Property tax – entered as a percentage of home value per year. The US average is about 1.1%, but it ranges from ~0.3% (Hawaii) to over 2% (New Jersey, Illinois, Texas).
• Home insurance – the US average is roughly $1,700–$2,400 per year, higher in coastal and wildfire-prone areas.
• PMI – typically 0.3%–1.5% of the loan amount per year. It disappears once you reach 20% equity, and the calculator estimates when that happens.
• Extra monthly payment – anything you add on top goes straight to principal, which is why even $100/month saves thousands in interest.

How much house can you afford?

Lenders lean on two ratios. The front-end ratio compares your full housing payment (the total this calculator shows) to your gross monthly income; most lenders want it at or below 28%. The back-end ratio adds all other monthly debt (car loans, student loans, credit card minimums) and should stay at or below 36% for the best terms, though many loans are approved up to 43–50%.

A quick sanity check: multiply your gross monthly income by 0.28. If the total payment above is higher than that, you are stretching. Try a bigger down payment, a lower price, or a longer term and watch the payment update instantly.

15-year vs 30-year mortgage

A 15-year loan carries a higher monthly payment but a lower interest rate and dramatically less total interest, often less than half. A 30-year loan is easier on monthly cash flow and leaves room for investing the difference. Toggle the term above and compare the Total interest figure to see the exact trade-off for your numbers.

A middle path: take the 30-year loan for flexibility and use the extra-payment field to simulate paying it like a 15-year. You keep the option to drop back to the minimum in a tight month.