Mortgage Calculator
Advanced planning with amortization schedule, extra payments, taxes, insurance & affordability
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Complete the form above and click "Calculate Repayments" to see your full mortgage breakdown
Advanced planning with amortization schedule, extra payments, taxes, insurance & affordability
Complete the form above and click "Calculate Repayments" to see your full mortgage breakdown
This free mortgage calculator helps you estimate your monthly payment with taxes, insurance, PMI, and extra payments included. Most online calculators only show principal + interest. That number is wrong. Your real payment is always higher.
1. Mortgage Amount: Enter the total loan you plan to borrow. This is your home price minus your down payment. For a $400,000 home with 20% down, your mortgage amount is $320,000.
2. Mortgage Term: Choose 15, 20, or 30 years. A 30-year term gives you the lowest monthly payment. A 15-year term saves massive interest but doubles the payment.
3. Interest Rate: Enter your annual rate. Check with a lender for current rates. Even 0.25% changes your payment by $50-$100/month on a $300k loan.
4. Down Payment: Optional but important. Less than 20% down means you’ll pay PMI. We calculate your loan-to-value (LTV) automatically.
5. Annual Property Tax: Enter your yearly county tax. Average is 1.1% of home value, but it varies. Alabama is ~0.4%. New Jersey is 2.4%. Check your county assessor site.
6. Annual Home Insurance: Average is $1,200-$2,500/year or $100-$200/month. Coastal states like Florida cost more.
7. Extra Monthly Payment: Want to pay off your house early? Add $100, $200, or more. We show you exactly how much interest you save and how many years you cut off.
Click Calculate Repayments to see your full breakdown, amortization schedule, and total interest paid.
Your mortgage payment has 4 parts, called PITI: Principal, Interest, Taxes, Insurance.
Formula: M = P [ i(1 + i)^n ] / [ (1 + i)^n – 1 ]
Where M = monthly payment, P = principal loan amount, i = monthly interest rate, n = number of payments.
Real example: $400,000 home, 20% down = $320,000 loan. 30-year term at 6.5% interest.
If you only calculated principal + interest, you’d be $492 short every month. That’s why taxes and insurance matter.
What about PMI? If you put less than 20% down, add $100-$300/month for Private Mortgage Insurance until you hit 20% equity.
PMI = Private Mortgage Insurance. It protects the lender, not you. You pay it if your down payment is less than 20%.
How much is PMI? Usually 0.5% to 1.5% of the loan amount per year. On a $300,000 loan, that’s $125-$375/month added to your payment.
How to avoid PMI:
How to remove PMI: Once you reach 20% equity from payments + home appreciation, call your lender. They are legally required to remove it at 22% equity. Don’t wait. Lenders won’t remove it automatically. You save $200+/month the day it’s gone.
First-time buyers get shocked when the real payment is $600 higher than the mortgage estimate. Here’s why:
Property Tax Example:
Same house, $232/month difference just from location. Always check your county rate.
Home Insurance: Costs $800-$4,000/year depending on state, age of home, and coverage. Florida and Louisiana are highest due to hurricanes. New homes are cheaper than 1950s homes.
Your lender collects 1/12 of these costs every month and holds them in escrow. Then they pay your tax and insurance bills for you once a year. That’s why your payment is called PITI.
Yes, if you have no high-interest debt. Extra payments go 100% toward principal. This cuts years off your loan and saves massive interest.
Example: $320,000 loan, 30-year, 6.5% rate. Normal payment = $2,022/month. Total interest = $407,920.
Add $100 extra/month: You pay off the loan 3 years, 6 months early. Save $47,103 in interest.
Add $250 extra/month: Pay off 7 years, 10 months early. Save $99,847 in interest.
Pro tip: Make 1 extra payment per year instead of monthly. Ask your lender to apply it to principal. You’ll cut 4 years off a 30-year loan.
When NOT to pay extra: If you have credit card debt at 24% interest, pay that first. If your mortgage is 3% and you can invest at 7%, investing wins. But most people feel better debt-free.