Mortgage Calculator
Estimate principal, interest, and starter tax, insurance, and PMI assumptions for a home loan.
Home and loan
Starter assumptions: 1.2% annual property tax, $1,500 annual homeowners insurance, and PMI at 0.5% of the loan per year when the down payment is under 20%. PMI is removed once the balance is scheduled to reach 78% of the home price. A down payment above the home price is treated as paying cash, so the loan amount stays at $0.
Restore the starter mortgage scenario and hide the schedule.
What this means
At this rate and term, most early payments skew toward interest. Rate changes, extra monthly principal, and loan term usually move total cost more than small rounding differences in taxes or insurance.
Scenario comparison
Cases to test next
| Case | Change | Watch |
|---|---|---|
| Base case | Use the current price, down payment, rate, and term. | Monthly payment and total interest |
| Lower rate | Drop the rate by 1 percentage point. | Payment relief and interest saved |
| Shorter term | Compare 15 or 20 years against a 30-year term. | Higher payment, lower lifetime interest |
| Extra payment | Add monthly principal when cash flow allows. | Earlier payoff and less interest |
Reading the results
Mortgage visual analysis
Use the chart and fallback table to compare how principal, interest, rate, and extra payments shape the loan over time.
| Signal | Value to watch | Why it matters |
|---|---|---|
| Principal | Loan amount | The amount borrowed after the down payment. |
| Interest | Total interest | The modeled financing cost over the selected term. |
| Rate sensitivity | 1% lower rate | Shows how much payment relief a lower rate could create. |
| Balance path | Amortization table | Use the schedule to inspect remaining balance over time. |
Schedule
Amortization schedule
Monthly for the first year, then the first payment of each year and the final payment.
| Payment | Interest | Principal | Remaining balance |
|---|
Mastering Your Home Loan: How This Mortgage Calculator Helps You
A mortgage payment is more than principal and interest. Taxes, insurance, PMI, HOA dues, and extra principal can all change the monthly number. Use this calculator to estimate the payment and see how the loan balance moves over time.
Related guide
Understand the full payment beyond principal and interest
The calculator models the loan payment. The guide explains how taxes, insurance, PMI, HOA dues, maintenance reserves, and extra payments change the real ownership budget.
Read the mortgage payment breakdown guideUnderstanding Your Monthly Payment (PITI)
Most mortgage payments are more than just principal and interest. Lenders often use the acronym PITI to describe the full monthly cost:
- Principal: The actual portion of the payment that goes toward paying off your loan balance.
- Interest: The fee charged by the lender for borrowing the money. Early in the loan, most of your payment goes to interest.
- Taxes: Property taxes charged by your local government, often held in an escrow account.
- Insurance: This includes homeowners insurance and, depending on your down payment size, Private Mortgage Insurance (PMI).
How to Use Initial Results to Plan Your Move
Use the controls above to model different scenarios. Adding extra principal may shorten the payoff date and reduce interest if the servicer applies the extra amount to principal. The chart updates to show the ratio of borrowed principal versus modeled interest.
A note on down payments
Putting down at least 20% of the home's purchase price often removes private mortgage insurance from the monthly estimate. PMI rules vary by lender, loan type, and borrower profile, so compare the calculator result with a lender-provided Loan Estimate.
Last updated: October 2026
Formula or calculation method
The calculator estimates principal and interest with the standard amortization formula. It starts with home price minus down payment, converts the annual rate to a monthly rate, and spreads repayment across the selected term. It then adds starter property tax (1.2% of the home price per year), $1,500 of annual homeowners insurance, and PMI (0.5% of the loan per year) when the down payment is under 20%, with PMI removed once the balance is scheduled to reach 78% of the home price. The extra-payment control adds optional principal each month and changes the displayed payoff timeline.
Read the sitewide calculator methodology for how utility.finance documents formulas, assumptions, and model limits.
Plain-English assumptions
- The monthly estimate includes principal, interest, starter property tax, homeowners insurance, and PMI when the down payment is under 20%. HOA dues, maintenance, and closing costs are not included.
- Your actual tax bill, insurance premium, and PMI rate can differ from the starter assumptions, and HOA dues or maintenance can change affordability even when the payment looks manageable.
- The amortization schedule assumes a fixed rate, fixed payment timing, and no missed payments.
Worked example
Example: a $400,000 home with $80,000 down leaves a $320,000 loan. At 6.5% for 15 years, the estimated principal-and-interest payment is about $2,800 per month before taxes, insurance, HOA dues, or PMI.
Scenario comparison
Scenario comparison: raising the term from 15 to 30 years usually lowers the monthly payment but increases lifetime interest. Adding $200 per month to principal can shorten the payoff period, but only if the loan servicer applies that amount to principal.
Sensitivity notes
Sensitivity note: mortgage results are especially sensitive to interest rate, term, and down payment. A one-point rate change or a shift from 15 to 30 years can move both monthly payment and total interest by a meaningful amount.
Common mistakes
- Using the estimated payment as the full housing budget instead of adding HOA dues, maintenance, and reserves.
- Comparing loan offers without checking points, lender fees, and whether the rate is fixed or adjustable.
- Assuming lender qualification means the payment is comfortable for your monthly cash flow.
FAQ
Is this the same as a lender quote?
No. It is an educational estimate based on the numbers you enter. A lender quote may include credit pricing, points, escrow items, and loan-specific fees.
Why is affordability different from qualification?
Qualification is based on lender rules. Affordability depends on your actual budget, emergency fund, household expenses, and comfort with the payment.
Related guides
Start with Understand the full payment beyond principal and interest. It expands the calculator result with context, examples, and decisions to check before acting.
Related scenarios
Disclaimer
This calculator is for education and scenario planning. It does not provide individualized financial, tax, legal, credit, mortgage, or investment advice. Real outcomes can differ because rates, fees, taxes, insurance, lender rules, market returns, and household circumstances vary. Review the full financial disclaimer before relying on any estimate.