Work out the full monthly cost of a home loan — principal and interest plus property tax, homeowners insurance, PMI and HOA fees — and see when PMI drops off.
Yearly amortization table
| Year | Interest | Principal | PMI | Balance at year end |
|---|
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Results are estimates for information only, not financial, tax, legal or investment advice. Actual rates, fees, taxes and rules vary. How our calculators work
How to use the Mortgage Calculator
- Enter the home price and your down payment, as an amount or a percentage.
- Enter the interest rate and choose the loan term.
- Add the yearly property tax (as a percentage of the price or an amount), homeowners insurance, any HOA fee, and the PMI rate if you put down less than 20%.
- Read the total monthly payment and its breakdown, when PMI stops, and the year-by-year amortization table.
About this tool
The figure a lender quotes as “the payment” is usually just principal and interest. What leaves your account each month is larger: lenders collect property tax and homeowners insurance into an escrow account along with the loan payment, conventional loans with less than 20% down add private mortgage insurance (PMI), and many condos and estates charge HOA fees. Together these are often called PITI — principal, interest, taxes and insurance. This calculator adds all of them up.
How it works. The loan amount is the price minus the down payment. Principal and interest use the standard fixed-rate formula, M = L × r / (1 − (1 + r)−n), where L is the loan, r the annual rate divided by 12 and n the number of monthly payments. Property tax and insurance are divided by 12. PMI is the yearly rate times the original loan amount, divided by 12, and it is charged only while the loan is more than 80% of the home’s price.
When PMI ends. Under the US Homeowners Protection Act, PMI on a conventional loan ends automatically when the balance is scheduled to reach 78% of the home’s original value, and you can ask the lender to cancel it once you reach 80%. The calculator shows the automatic date from the regular schedule; extra payments bring it forward. FHA loans charge a mortgage insurance premium (MIP) under different rules, and it often lasts for the life of the loan.
Property tax rates, insurance premiums and PMI rates vary a lot by location, credit score and lender, so use the figures from your own quotes when you have them.
Frequently asked questions
What is included in a mortgage payment?
Principal and interest on the loan, plus — in most cases — property tax and homeowners insurance collected into escrow. Loans with less than 20% down usually add PMI, and some properties have HOA fees, which are normally paid separately but are still a monthly housing cost.
How much is PMI?
Typically somewhere between about 0.3% and 1.5% of the loan amount per year, depending mainly on your credit score and down payment. On a $360,000 loan at 0.5%, that is $1,800 a year, or $150 a month.
When does PMI go away?
On a conventional loan it ends automatically when the balance is scheduled to fall to 78% of the home’s original value, and you can request cancellation at 80% if your payment history is good. Paying extra principal reaches those points sooner.
How do I avoid PMI?
Put down at least 20% on a conventional loan. Some lenders offer “lender-paid” mortgage insurance in exchange for a higher rate, and VA loans do not charge PMI.
What property tax rate should I use?
US effective property tax rates range from under 0.5% to over 2% of a home’s value a year depending on the state and county; around 1% is a common middle figure. The listing or the county assessor’s website shows the actual tax bill for a specific home.
Does a 15-year mortgage save money?
Usually a lot. The monthly payment is higher, but the rate is typically lower and you pay interest for half as long. Switch the term between 30 and 15 years above to compare total interest.