Mortgage Payment Calculator
Calculate your monthly mortgage payment with optional taxes, insurance, and PMI (PITI). See your total interest, LTV, and how overpaying can shorten your loan.
Your monthly payment (P+I)
$2,128.97
You'll pay $2,128.97 per month for 30 years. Your loan-to-value ratio is 80.0%. Over the life of the mortgage you'll pay $446,428.47 in interest on top of the $320,000.00 you borrowed.
Balance and interest over time
Year-by-year breakdown
| Year | Payments | Interest | Principal | Balance |
|---|---|---|---|---|
| 1 | $25,547.62 | $22,297.02 | $3,250.59 | $316,749.41 |
| 2 | $25,547.62 | $22,062.04 | $3,485.58 | $313,263.83 |
| 3 | $25,547.62 | $21,810.07 | $3,737.55 | $309,526.28 |
| 4 | $25,547.62 | $21,539.88 | $4,007.74 | $305,518.54 |
| 5 | $25,547.62 | $21,250.16 | $4,297.46 | $301,221.09 |
Formula
A standard amortising mortgage uses the same formula as any other fixed-rate loan:
M = P × r(1+r)n / ((1+r)n − 1),
where P is the loan amount (home price minus deposit), r is
the monthly rate (annual rate divided by 12), and n is the term in months.
With a 25- or 30-year term this means early payments are mostly interest and later payments
are mostly principal — the chart above shows the crossover. Optional taxes and insurance are
added directly to the monthly outflow without affecting the schedule.
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Frequently asked questions
What is PITI?▾
PITI stands for Principal, Interest, Taxes, and Insurance — the four components of a typical US monthly mortgage payment when the lender escrows taxes and insurance on your behalf. The headline number on this calculator is just principal + interest (P+I); when you fill in the optional Tax & insurance section, a separate sub-line shows the full PITI figure.
When is PMI required?▾
Most US conventional lenders require Private Mortgage Insurance (PMI) when your deposit is less than 20% of the home price (LTV above 80%). PMI typically costs 0.5–1% of the loan amount per year, paid monthly. Under the federal Homeowners Protection Act, PMI must be cancelled automatically when your scheduled balance reaches 78% LTV (or earlier if you request it at 80%). Enter your PMI as a monthly figure in the Tax & insurance section.
Why does the 30-year fixed dominate the US market?▾
The 30-year fixed-rate mortgage is a US peculiarity supported by the secondary market (Fannie Mae and Freddie Mac buy these loans from lenders, transferring interest-rate risk away from banks). It gives borrowers a predictable monthly payment for the life of the loan — most other countries don't offer terms this long at fixed rates. ARMs (Adjustable-Rate Mortgages) reset periodically; this calculator assumes a single fixed rate for the full term.
Should I overpay my mortgage?▾
Federal CFPB rules ban prepayment penalties on most qualified residential mortgages originated since 2014, so overpaying is generally free and effective — every extra dollar reduces principal directly and saves compound interest. Older loans or some non-QM products may still charge a prepayment penalty; check your loan documents. The 'Extra monthly payment' field above shows the time and interest savings.
Should I include property tax and insurance in my budget?▾
Yes — even if your lender doesn't escrow them, they're part of the true cost of owning. Property tax in the US ranges roughly 0.3–2.5% of home value per year by state and locality; homeowner's insurance averages around 0.5% of home value. Use the Tax & insurance section to model them; the headline P+I stays separate so you can compare lender quotes apples-to-apples.