CalcWealth

Free Mortgage Calculator — Monthly Payment with PMI, Tax & Insurance

Calculate your complete monthly mortgage payment including principal & interest, PMI, property tax, and homeowners insurance. See your full 30-year amortization schedule.

This mortgage calculator uses the standard amortization formula to show your exact monthly payment, how much goes to interest vs. principal over time, and automatically flags when PMI applies on down payments under 20%. No sign-up required.

What Is a Mortgage Calculator?

A mortgage calculator computes your monthly payment using the loan amount (home price minus down payment), interest rate, and loan term. Unlike simple loan calculators, a complete mortgage calculator also factors in PMI, property taxes, and homeowners insurance to give you the true total monthly housing cost.

The principal and interest portion (P&I) is fixed for the life of the loan. But your total payment includes three variable costs: property tax (typically 0.5–2.5% of home value annually), homeowners insurance ($800–$2,500/year), and PMI (0.5–1.85% annually if down payment is under 20%).

Use this calculator alongside our loan calculator to compare loan scenarios, or our budget calculator to check if a payment fits your 28/36 rule.

How to Use This Mortgage Calculator

  1. 1

    Enter Home Price and Down Payment

    Home price is the purchase price. Down payment is the cash you bring. The difference is your loan amount. A 20% down payment on a $400,000 home = $80,000 down, $320,000 loan.

  2. 2

    Set Interest Rate and Loan Term

    Your rate comes from your lender's offer. 30 years is standard; 15 years saves dramatically on interest. Even 0.5% rate difference matters: $320,000 at 7% vs 7.5% over 30 years = $38,000 difference in total interest.

  3. 3

    Adjust Property Tax and Insurance

    Property tax defaults to 1.1% annually (national average). Look up your county's actual rate for accuracy — varies from 0.3% (Hawaii) to 2.5% (New Jersey). Insurance defaults to $100/month; get quotes to find your real number.

Mortgage Payment Formula

M = P × [r(1+r)^n] / [(1+r)^n − 1]

P = loan amount, r = monthly rate (APR ÷ 12 ÷ 100), n = 360 months for a 30-year loan.

Example: $320,000 at 7% for 30 years — r = 0.005833, n = 360. M = 320,000 × [0.005833 × 1.005833^360] / [1.005833^360 − 1] = $2,129/month P&I. Total interest over 30 years = $446,284.

Mortgage Payment Examples

Real scenarios at current market rates.

Starter Home: $300,000 at 7%, 30 Years, 10% Down ($30,000)

Loan amount: $270,000. Monthly P&I: $1,796. PMI (0.85%): $191/mo. Property tax ($300K × 1.1%/12): $275/mo. Insurance: $100/mo. Total monthly: $2,362. Once equity reaches 80% (about year 6), PMI drops off — saving $191/month, or $2,292/year.

Mid-Range Home: $500,000 at 7%, 30 Years, 20% Down ($100,000)

Loan amount: $400,000. No PMI. Monthly P&I: $2,661. Property tax ($500K × 1.1%/12): $458/mo. Insurance: $150/mo. Total monthly: $3,269. Over 30 years, total interest = $557,800. On a 15-year at 6.5% instead: $3,486/mo, saves $214,000 in interest.

Luxury Home: $1,000,000 at 7.5%, 30 Years, 20% Down ($200,000)

Loan amount: $800,000. Monthly P&I: $5,594. Property tax ($1M × 1.2%/12): $1,000/mo. Insurance: $250/mo. Total monthly: $6,844. Total interest = $1,213,895. This illustrates why high home prices at elevated rates dramatically increase lifetime cost — the interest alone exceeds the original purchase price.

Frequently Asked Questions

How much house can I afford?
The 28/36 rule: your monthly mortgage payment should not exceed 28% of gross monthly income, and total debt payments should not exceed 36%. On $80,000/year ($6,667/month): max mortgage payment = $1,867, max total debt = $2,400. Lenders typically require a debt-to-income ratio under 43%. Use a 20% down payment to eliminate PMI and qualify for better rates.
What is PMI and when can I remove it?
PMI (Private Mortgage Insurance) is required when your down payment is less than 20% of the home price. It protects the lender, not you. PMI typically costs 0.5–1.5% of the loan amount annually ($83–$250/month on a $200,000 loan). You can request PMI removal once your loan balance reaches 80% of the original purchase price. Under the Homeowners Protection Act, lenders must automatically cancel PMI at 78%.
What is the difference between a 15-year and 30-year mortgage?
$400,000 home, 20% down ($80,000), $320,000 loan at 7%: 30-year = $2,129/month, total interest = $446,484. 15-year = $2,877/month, total interest = $197,904. The 15-year saves $248,580 in interest but costs $748/month more. If you can afford the 15-year payment, you build equity twice as fast and save nearly a quarter million dollars.
How much is a $400,000 mortgage per month?
$400,000 mortgage at 7% for 30 years = $2,661/month (P&I only). Add property tax (1.1% = $367/mo), homeowners insurance ($100/mo), and PMI if under 20% down ($142/mo) = approximately $3,270/month total. On a 15-year term at 7%: $3,593/month P&I. The exact amount depends on your down payment, rate, taxes, and insurance costs.
Is it better to put 20% down on a house?
20% down eliminates PMI (saves $100–$250/month), reduces your loan amount, and often qualifies you for better rates. On a $400,000 home: 20% down ($80,000) vs 5% down ($20,000) — the 5% buyer pays PMI of ~$142/month plus more interest on the higher loan. Over 5 years until PMI removal, that's roughly $8,500 extra. However, keeping cash liquid for emergencies may justify a lower down payment.
Should I choose a fixed or adjustable-rate mortgage (ARM)?
Fixed-rate mortgages lock your rate for the entire term — ideal if you plan to stay 7+ years. ARM rates are lower initially (often 0.5–1.5% below 30-year fixed) but reset after 5–7 years. A 7/1 ARM at 5.5% vs 30-year fixed at 7% on $400,000: saves $387/month for 7 years = $32,508. If rates rise to 8% after reset, the ARM becomes more expensive. ARMs suit buyers planning to sell or refinance within the fixed period.

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