Mortgage Calculator
See the payment you will actually make, taxes, insurance and PMI included, not just principal and interest. Then watch extra payments cut years of interest and end PMI sooner.
1The home
20% of price
% / yr
Loan amount360,00080% LTV
2Taxes, insurance & fees
%
No PMI: your 20%+ down payment avoids mortgage insurance.
3Terms
years
Payment frequency
4Extra paymentsOptional
Your total monthly paymentMonthly
2,817 / mo
all-in (PITI) on a 360,000 loan at 6.25%. Principal & interest is 2,217/mo.
Principal & interest2,217
Property tax450
Home insurance150
Down payment
90,000
Total interest
437,969
Payoff time
30 years
Lifetime cost
1,013,969
Over the life of the loan
BalancePrincipal paidInterest paid
374k
281k
187k
94k
0
now5y10y15y20y25y30y
On a 360,000 loan at 6.25% over 30 years, your all-in monthly payment (PITI) is 2,817. Total interest paid is 437,969 and the lifetime cost is 1,013,969.
How to use this calculator
From a home price to your real monthly cost.
1
Enter the home
Add the purchase price and your down payment (as a dollar amount or a percent). We derive the loan amount and prefill the price and rate from your mortgage when you are signed in.
2
Add the real costs
Property tax, insurance, HOA and, if your down payment is under 20%, mortgage insurance (PMI). These turn a principal-and-interest figure into the payment you will actually make.
3
Set the terms
Choose the loan term, how often you pay, and optionally a start date so the schedule shows real calendar months.
4
Pay it down faster
Add an extra payment, timed in years, and see how much interest you save and how many years you cut, plus exactly when PMI falls away.
Key concepts
The mechanics of a mortgage.
PITI: the real payment
Lenders think in PITI: Principal, Interest, Taxes and Insurance. Your true monthly cost is the loan payment plus property tax, homeowners insurance, any HOA dues and PMI. Budgeting on principal and interest alone understates what you actually pay.
Loan-to-value (LTV)
The loan as a percentage of the home's value. A 20% down payment means 80% LTV. LTV drives whether you pay PMI and affects your rate, which is why a larger down payment can lower your costs in more ways than one.
PMI and when it ends
Private mortgage insurance protects the lender when your down payment is below 20%. It is an extra monthly cost that adds nothing to your equity, but it automatically falls away once you have paid the balance down to 80% of the home's value.
Amortization
How a loan is repaid in equal payments. Early on most of each payment is interest; over time the balance falls and more goes to principal. Extra payments go straight to principal, removing all the future interest that principal would have cost.
Extra payments
Anything above the scheduled payment reduces principal directly, so it deletes future interest and shortens the loan. Because mortgages run for decades, even a modest extra payment made early saves a surprising amount.
Total cost of ownership
Over a full term the interest alone can rival the price of the home, and tax, insurance and PMI add more. Looking at lifetime cost, not just the monthly payment, is the honest way to compare loans and weigh paying extra.
The 28/36 affordability rule
A quick check on how much house you can afford: keep the full housing payment (PITI) under 28% of gross monthly income, and all debt payments combined under 36%. On an $8,000 gross income that means at most $2,240 for housing and $2,880 including car loans, cards and student debt. Lenders qualify you on similar ratios, but the rule is also a personal guardrail: a payment that passes the 28% test leaves room for saving, repairs and everything a mortgage calculator cannot see.
Discount points and the break-even
A discount point costs 1% of the loan upfront and typically lowers the rate by about 0.25%. On a $300,000 30-year loan, one point costs $3,000 and cuts the payment from roughly $1,896 at 6.5% to $1,847 at 6.25%, about $49 a month. Divide cost by saving: $3,000 / $49 is roughly 61 months, so you break even after about five years. Points only pay off if you keep the loan longer than that; if you expect to move or refinance sooner, skip them.
Tips to pay less
Small moves, big savings.
Put down 20% to skip PMI
Reaching a 20% down payment avoids mortgage insurance entirely. If you are close, finding the extra can remove a monthly cost that builds you no equity.
Budget the whole PITI
Lenders qualify you on the full payment including taxes and insurance. Plan around that number, not the principal-and-interest figure, so the real cost never surprises you.
Round up the payment
Rounding your payment up sends the difference straight to principal every month. It is painless and quietly shaves years off the loan.
Drop PMI sooner with extra payments
Extra principal payments get you to 20% equity faster, which can end PMI early. Watch the PMI-ends marker move as you raise the extra payment.
Compare total interest, not the payment
A lower monthly payment over a longer term usually costs far more overall. When choosing a term, look at the lifetime interest, not just the headline payment.
Recast after a lump sum
After a large one-time payment, some lenders will recast the loan: same rate and term, but the payment is recalculated on the lower balance, usually for a small fee. Extra payments shorten the loan; a recast lowers the monthly bill instead.
FAQ
What is PITI and why does it matter?+
PITI stands for Principal, Interest, Taxes and Insurance: the four parts of a typical mortgage payment, plus HOA and PMI where they apply. It matters because your real monthly cost is the full PITI, which can be hundreds of dollars above the principal-and-interest figure most calculators show.
How is the loan amount worked out?+
It is the home price minus your down payment. Enter the down payment as a dollar amount or a percent and we derive the loan, the loan-to-value ratio, and whether PMI applies.
When do I have to pay PMI?+
Generally when your down payment is under 20% of the home's value. This calculator adds PMI automatically in that case and removes it once your balance falls to 80% of the price. A bigger down payment, or extra payments, can avoid or end it sooner.
Do extra payments really save that much?+
Yes. Every extra dollar goes entirely to principal, permanently removing the interest that dollar would have cost for the rest of the loan. Made early, when the balance is highest, the effect is large, and it can also end PMI sooner.
Is bi-weekly better than monthly?+
Usually. Paying half your monthly amount every two weeks results in 26 half-payments, or 13 full payments, a year instead of 12. The extra payment goes to principal and can shorten a 30-year loan by several years.
Are property tax and insurance estimates?+
Yes. They vary widely by location and property, so enter your own figures when you have them. The defaults are placeholders to show how taxes and insurance affect the total payment.
How much cheaper is a 15-year loan than a 30-year?+
Dramatically cheaper in interest, but with a higher payment. On $300,000, a 30-year loan at 6.5% costs about $1,896 a month and roughly $382,600 in total interest. A 15-year loan at 6.0% (shorter terms usually price lower) costs about $2,532 a month but only around $155,700 in interest, roughly $227,000 less. Choose the 15-year only if the extra $636 a month never squeezes your emergency fund or retirement saving.
What does an extra $100 a month actually save?+
More than most people guess. On a $300,000 loan at 6.5% over 30 years, adding $100 a month to principal saves about $61,000 in interest and pays the loan off four years early. The effect is strongest at the start, when the balance and the interest share of each payment are highest. Enter your own numbers in the extra payments card to see your exact figure.
Should I pay off my mortgage early or invest?+
Paying extra earns a guaranteed return equal to your rate; investing offers a higher expected but uncertain return. With a 3% mortgage, long-term investing usually wins mathematically; at 7%, the guaranteed saving is hard to beat. Fill your emergency fund and any employer retirement match first, since those beat both options. Many people simply split the difference and do some of each, which is a perfectly reasonable answer.
When is refinancing worth it?+
A common threshold is a rate at least 0.75 to 1 point below your current one, but the real test is the break-even. Divide closing costs by the monthly saving: $4,500 in costs against a $150 lower payment is 30 months. If you will keep the home and loan longer than that, refinancing pays; if you might move sooner, it does not. Watch out for restarting a 30-year clock, which can raise lifetime interest even at a lower rate.
This calculator derives the loan from the home price and down payment, amortizes it at a fixed rate with 6.25% interest, and adds property tax, insurance, HOA and PMI to show the full monthly payment. PMI applies while the balance exceeds 80% of the price and is removed automatically thereafter. Illustrative, not financial advice.
Fixed-rate amortization with PITI and PMI. Illustrative, not financial advice.