Work out the true monthly cost of a home loan: principal and interest plus property tax, homeowners insurance, HOA dues and PMI, with a year-by-year amortization schedule.
Your loan details
Monthly payment including taxes, insurance and PMI.
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This default reflects the US national average for a 30-year fixed mortgage in October 2026. Enter your own quoted rate for an accurate result.
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Total monthly payment
$0/ month
Principal & interest
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Loan amount
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Total interest
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Payoff date
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What each payment covers
Balance over time
Amortization schedule
Year-by-year breakdown of principal, interest and remaining balance.
Year
Principal
Interest
Balance
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How the mortgage payment is calculated
The core of the payment, principal and interest, comes from the standard amortization formula:
M = P x r(1 + r)^n / ((1 + r)^n - 1)
Where P is the loan amount, r is the monthly rate (annual rate divided by 12) and n is the total number of payments. Early payments are mostly interest; as the balance falls, a growing share goes to principal. That is why the schedule above tilts so heavily toward interest in the first years.
Property tax, homeowners insurance, HOA dues and PMI are added on top so the total reflects what actually leaves your bank account each month.
Ways to cut the total cost
A bigger down payment shrinks the loan and, at 20% or more, removes PMI entirely.
A shorter term raises the monthly payment but can cut total interest by more than half versus a 30-year loan.
One extra payment a year toward principal can shorten a 30-year mortgage by roughly 4 to 5 years.
Rate shopping matters: a 0.5% lower rate on a $340,000 loan saves about $40,000 in interest over 30 years.
The principal-and-interest portion uses the amortization formula M = P x r(1+r)^n / ((1+r)^n - 1), where P is the loan amount, r is the monthly rate and n is the number of payments. Property tax, insurance, HOA dues and PMI are then added to give the true monthly cost.
What is PMI, and when does it go away?
Private mortgage insurance is usually required on a conventional loan with less than 20% down. It typically costs 0.3% to 1.5% of the loan per year, billed monthly. It can generally be removed once your balance reaches 80% of the home's value; on most loans it drops off automatically at 78%.
How much house can I afford?
A common guideline is the 28/36 rule: housing costs (payment, tax, insurance) under 28% of gross monthly income, and all debts combined under 36%. Lenders vary, and your own comfort level matters more than a lender's maximum. Run the calculator above with your real tax and insurance figures for an honest number.
Should I choose a 15-year or 30-year mortgage?
A 15-year loan has higher monthly payments but usually a lower rate and far less total interest, often less than half of a 30-year loan. A 30-year loan keeps payments lower and preserves cash flow. Compare the total interest figures, not just the monthly payment.