PMI, or private mortgage insurance, is an extra monthly cost lenders require when your down payment is less than 20% of the home's price on a conventional loan. It protects the lender, not you, in case you default. This calculator estimates PMI automatically when your down payment falls below 20%, using the PMI rate you can adjust. The good news is PMI is not permanent: on most conventional loans it can be removed once you reach about 20% equity, and it typically must be canceled automatically at 22% equity. Reaching that threshold sooner lowers your total housing cost.
Mortgage Calculator
Estimate your full monthly mortgage payment including taxes, insurance and PMI.
Reviewed by the Smart Finance Calculators Editorial TeamLast reviewed:
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Values update automatically. Currency: USD.
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Your down payment is 15.00% (below 20%), so PMI of about $141.67/month is estimated. You can override the PMI rate above.
Results
- Principal & interest
- $2,205.23
- Total monthly payment
- $2,871.90
- Loan amount
- $340,000.00
- Total interest
- $453,884.07
- Total cost of mortgage
- $793,884.07
- Payoff
- July 2056
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Chart data: month Yr 0, Balance 339707; month Yr 1, Balance 336063; month Yr 2, Balance 332166; month Yr 3, Balance 327997; month Yr 4, Balance 323537; month Yr 5, Balance 318768; month Yr 6, Balance 313666; month Yr 7, Balance 308208; month Yr 8, Balance 302371; month Yr 9, Balance 296128; month Yr 10, Balance 289450; month Yr 11, Balance 282306; month Yr 12, Balance 274666; month Yr 13, Balance 266493; month Yr 14, Balance 257751; month Yr 15, Balance 248401; month Yr 16, Balance 238400; month Yr 17, Balance 227702; month Yr 18, Balance 216259; month Yr 19, Balance 204020; month Yr 20, Balance 190928; month Yr 21, Balance 176925; month Yr 22, Balance 161947; month Yr 23, Balance 145926; month Yr 24, Balance 128790; month Yr 25, Balance 110460; month Yr 26, Balance 90854; month Yr 27, Balance 69883; month Yr 28, Balance 47452; month Yr 29, Balance 23458
| Month | Principal | Interest | Balance |
|---|---|---|---|
| 1 | $292.73 | $1,912.50 | $339,707.27 |
| 2 | $294.38 | $1,910.85 | $339,412.89 |
| 3 | $296.04 | $1,909.20 | $339,116.85 |
| 4 | $297.70 | $1,907.53 | $338,819.15 |
| 5 | $299.38 | $1,905.86 | $338,519.77 |
| 6 | $301.06 | $1,904.17 | $338,218.71 |
| 7 | $302.75 | $1,902.48 | $337,915.96 |
| 8 | $304.46 | $1,900.78 | $337,611.50 |
| 9 | $306.17 | $1,899.06 | $337,305.34 |
| 10 | $307.89 | $1,897.34 | $336,997.44 |
| 11 | $309.62 | $1,895.61 | $336,687.82 |
| 12 | $311.36 | $1,893.87 | $336,376.46 |
What the Mortgage calculator does
A mortgage calculator estimates your monthly home-loan payment and the full cost of buying a home over time. Beyond principal and interest, it accounts for property taxes, insurance, HOA fees and private mortgage insurance so you see the true monthly obligation.
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How the calculation works
The loan amount is the home price minus your down payment. A fixed-payment formula spreads that loan across the term, and recurring housing costs are added to produce the total monthly payment.
Formula
Payment = L × r ÷ (1 − (1 + r)^−n), where L is the loan, r the monthly rate and n the number of months. PMI applies when the down payment is below 20%.
What your results mean
A $400,000 home with $60,000 down (15%) at 6.75% over 30 years produces a principal-and-interest payment plus estimated PMI, taxes and insurance.
Limitations: Tax and insurance figures are estimates that vary by location. Adjustable-rate mortgages and points are not modeled.
Frequently asked questions
It depends on your priorities. A 15-year mortgage has higher monthly payments but a lower interest rate and dramatically less total interest, so you build equity faster and own the home sooner. A 30-year mortgage lowers the monthly payment, improving cash flow and affordability, but costs far more in interest over its life. Many buyers choose 30 years for flexibility and then make extra payments when they can, capturing some of the savings without being locked into a higher required payment. Use this calculator to compare the two terms and see the total-interest difference for your numbers.
Yes. Beyond principal and interest, it lets you enter annual property taxes, annual homeowners insurance, monthly HOA fees, and estimated PMI, then folds them into a total monthly payment that reflects the true cost of owning the home. This is important because taxes and insurance can add hundreds of dollars a month beyond the loan payment itself. The figures are estimates you provide, since tax rates and insurance premiums vary widely by location and property. Check your local tax rate and get an insurance quote to make the total payment as accurate as possible.
Any extra amount you pay is applied directly to your loan's principal, lowering the balance that interest is charged on for every remaining month. Because mortgages are long and front-loaded with interest, even modest extra payments early on can save a substantial amount over the full term and shorten the loan by years. This calculator includes an optional extra monthly payment so you can see how much interest and time you would save. Just confirm with your lender that extra payments are applied to principal and that no prepayment penalty applies before committing to a strategy. Our guide on how mortgage amortization works explains why early payments save the most.
No. This calculator focuses on your monthly payment and total loan cost, and it does not include one-time closing costs such as lender fees, appraisal, title insurance, taxes due at closing, and prepaid escrow amounts. Closing costs commonly run in the range of a few percent of the loan amount and are paid up front, separate from your down payment. Because they vary by lender and location, ask for a loan estimate to see them itemized. Budget for closing costs in addition to your down payment so you are not surprised by the cash needed at signing.
The principal-and-interest portion is calculated with the standard amortization formula and is accurate for a fixed-rate loan with the numbers you enter. The total monthly payment is only as accurate as your inputs for taxes, insurance, HOA, and PMI, which vary by location and can change over time. The tool does not model adjustable rates, discount points, rate changes, or escrow adjustments. Treat the results as a solid estimate for planning and comparison rather than an exact quote. For binding figures, rely on a lender's loan estimate based on your specific application.
Yes, in several ways. A larger down payment reduces the loan amount, which lowers both your monthly payment and the total interest you pay over the life of the loan. Putting down at least 20% also lets you avoid PMI on a conventional loan, removing that extra monthly cost, and a stronger down payment can sometimes help you qualify for a better interest rate. The trade-off is tying up more cash up front, so keep enough left over for closing costs and an emergency fund. Adjust the down payment in this calculator to see the impact on your numbers.
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Financial disclaimer: Results are estimates for educational purposes only and are not professional financial, tax, legal or investment advice. Figures may not reflect your exact situation. Consult a qualified professional before making financial decisions.