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Mortgage Calculator

Calculate home loan payments including PMI and property taxes

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Mortgage Calculator Guide: Calculate Home Loan Payments with PMI & Taxes

A mortgage calculator estimates monthly payment, total interest, and amortization for a home loan. It can include PMI, property taxes, homeowners insurance, and HOA dues to show your full monthly outlay.

What is Mortgage Calculator?

The mortgage calculator models fixed-rate mortgages and allows extra principal payments to see interest saved and earlier payoff. It also estimates when PMI may drop as your loan-to-value (LTV) falls.

How to Use the Mortgage Calculator

  1. Enter home price, down payment, and APR.
  2. Set term (e.g., 15 or 30 years) and choose compounding (monthly).
  3. Add taxes, insurance, HOA, and PMI settings (rate or fixed).
  4. Calculate P&I payment and total monthly outlay.
  5. (Optional) add extra payments and view payoff acceleration.

Formulas & Methods

  • Monthly rate: r = APR / 12
  • P&I payment: PMT = P*r / (1 - (1 + r)^(-n))
  • Balance after k: B_k = P*(1 + r)^k - PMT*((1 + r)^k - 1)/r
  • PMI (simple model): PMI = pmi_rate * P / 12 until LTV <= threshold
  • Escrow: Monthly_outlay = PMT + tax/12 + insurance/12 + HOA + PMI

Assumptions & limitations

  • Fixed-rate model; ARMs have rate changes.
  • PMI rules vary by lender/regulation.
  • Taxes and insurance are estimates; verify with local data.

Examples

Example A — 30-year fixed
Price $400,000, down 20% → P = $320,000, APR 6.25%, n = 360.
r = 0.0625/12 ~ 0.005208.
PMT ~ 320,000*0.005208/(1 - (1.005208)^(-360)) ~ $1,970 (P&I).
Add tax $4,800/yr, ins $1,200/yr, HOA $50/mo → Total ~ $2,520/mo.

Example B — With PMI, 10% down
P = $360,000, APR 6.25%, PMI rate 0.6%/yr → PMI ~ 0.006*360,000/12 = $180/mo until LTV <= 80% (drop timing shown in schedule). | Component | Monthly | |---|---:| | Principal & Interest | ~$1,970 | | Property Tax | $400 | | Insurance | $100 | | HOA | $50 | | PMI (if applicable) | varies |

Pro Tips & Best Practices

  • Compare 15-year vs 30-year: shorter term cuts interest dramatically.
  • Refinance if you can reduce APR enough to beat breakeven on costs.
  • Make one extra payment per year to shave years off the term.
  • Ask for PMI removal at 80% LTV with a good payment history.

Related Calculators

FAQ

Q: How is a mortgage payment calculated?

A: Payment = P*r / (1 - (1 + r)^(-n)), where P is principal, r monthly rate (APR/12), n months. Taxes/insurance/HOA add on top.

Q: What is PMI and when does it drop?

A: Private Mortgage Insurance protects the lender when LTV > 80%. It typically drops around 78% LTV or by request at 80% with good history.

Q: How do extra payments help?

A: Extra principal reduces balance faster, shortening term and saving interest.

Q: Should I buy points?

A: Paying points lowers APR; compare breakeven time to how long you will keep the loan.

Q: What about escrow for taxes and insurance?

A: Escrow items are not part of principal & interest but are added to the monthly outlay.

Compliance note: This article is for information only and not financial advice.

Call to Action

Price a home, add taxes/insurance/PMI, and see your true monthly—then try an extra-payment plan to reach freedom sooner.