Private Mortgage Insurance is an extra monthly premium lenders charge when your down payment is under 20% of the home price. A smaller down payment means the lender is financing more of the home, so they carry more risk if the loan ever defaults — PMI protects the lender, not you, against that risk. That's why it kicks in below the 20% mark and disappears once you reach 20% equity, at which point you can usually request to have it removed. Leave this on and the calculator adds PMI automatically whenever your down payment falls under 20%.
Conventional amortization schedule
Based on the inputs from your Conventional Loan tab. Early payments go mostly to interest — this schedule shows exactly when that flips in your favor.
Payment schedule
| Year | Principal | Interest | Balance |
|---|
Shown payment is P&I + MIP only — add your own property tax, insurance and HOA from the Conventional Loan tab for a full payment.
See the full year-by-year breakdown — including the exact year MIP drops off — in the FHA Amortization tab.
Buying with an FHA loan? Here's what's different.
FHA loans are government-insured mortgages designed to help buyers with lower credit scores or smaller down payments qualify. The math works a little differently than a conventional loan — mainly around mortgage insurance.
FHA MIP vs. conventional PMI
This is the difference that catches most buyers off guard. On a conventional loan, PMI cancels automatically once your balance reaches 78% of the home's original value. On an FHA loan, if you put down less than 10%, annual MIP usually stays for the life of the loan — it doesn't cancel on its own. Put down 10% or more, and MIP typically drops off after 11 years. There's also a one-time upfront MIP charge (separate from the annual premium) that's due at closing, though most lenders roll it into the loan balance rather than requiring cash upfront.
| FHA Loan | Conventional Loan | |
|---|---|---|
| Min. down payment | 3.5% | 3% – 20% |
| Min. credit score | 500–580 | 620+ typical |
| Mortgage insurance | MIP (upfront + annual) | PMI (annual only) |
| When insurance ends | Often life of loan if <10% down | Auto-cancels at 78% LTV |
| Loan limits | Set annually by county | Set annually, generally higher |
| Best for | Lower credit or smaller down payment | Stronger credit, 5%+ down |
FHA requirements, MIP rates and county loan limits change periodically and vary by lender and loan amount. Confirm current figures with an FHA-approved lender before relying on them.
FHA amortization schedule
Based on the inputs from your FHA Loan tab — including the upfront MIP and the 11-year MIP cancellation rule. Switch to the FHA Loan tab to change the numbers.
Payment schedule
| Year | Principal | Interest | MIP | Balance |
|---|
Cut years off your mortgage with extra payments
Add a little each month, drop a lump sum, or switch to bi-weekly — and watch how much sooner you're debt-free and how much interest you keep.
| Original | Your plan | |
|---|---|---|
| Payoff time | — | — |
| Total interest | — | — |
| Total paid | — | — |
The full picture, not just principal and interest
True PITI breakdown
Taxes, homeowners insurance, PMI and HOA dues are folded into your real monthly number — the figure your lender actually quotes.
Payoff date & interest
See the exact month you finish paying and the lifetime interest cost so you can compare 15- vs 30-year terms instantly.
Live, private & fast
Every number recalculates as you type. Nothing is sent anywhere — the math runs entirely in your browser.
How your mortgage payment is calculated
Your monthly mortgage payment is usually described with the shorthand PITI: Principal, Interest, Taxes and Insurance. The principal and interest portion is fixed for the life of a standard fixed-rate loan, while taxes and insurance are collected by your lender and held in an escrow account on your behalf.
The principal & interest formula
Lenders use a standard amortization formula to spread your loan evenly across every month of the term. It takes your loan amount, your monthly interest rate, and the total number of payments, then solves for the fixed payment that pays the balance down to zero by the final month. Because interest is charged on the remaining balance, early payments are interest-heavy and later payments are principal-heavy — which is exactly what the schedule above visualizes.
When you pay PMI
Private mortgage insurance is typically required when your down payment is below 20% of the home price. It protects the lender, not you, and usually costs somewhere between 0.3% and 1.5% of the loan amount each year. Once you build enough equity, you can generally request its removal — which is why putting 20% down, when possible, lowers your monthly cost in two ways at once.
Taxes, insurance and HOA
Property taxes vary widely by county and are reassessed periodically. Homeowners insurance depends on the home, its location, and your coverage level. If the property sits in a community with shared amenities, monthly HOA dues are an additional cost that is not part of the loan but still hits your budget every month. Adjust each field above to match a specific listing or a lender's estimate.
Estimates are for educational planning only and are not a loan offer or financial advice. Your actual rate, taxes, insurance and eligibility are determined by a licensed lender.
Frequently asked
Everything people ask before, during and after running the numbers — grouped by topic so you can jump straight to what you need.
A 20% down payment lets you avoid PMI and lowers your loan amount, but many buyers put down less. Conventional loans can go as low as 3%, FHA loans as low as 3.5%, and some VA and USDA loans require no down payment at all. Try a few values above to see the trade-off between cash upfront and your monthly cost.
PMI (Private Mortgage Insurance) is an extra monthly premium that protects the lender — not you — if you default on a loan with less than 20% down. It typically costs between 0.3% and 1.5% of your loan amount per year. The auto-apply toggle above adds it automatically whenever your down payment falls under 20%.
By federal law, lenders must automatically cancel PMI once your loan balance reaches 78% of the home's original value, as long as you're current on payments. You can also request removal earlier, once you reach 80% loan-to-value, by contacting your lender — sometimes a new appraisal is required to confirm your home's current value.
No — they're often confused but serve completely different purposes. Homeowners insurance protects you and your home against damage, theft and liability, and lenders require it on virtually every mortgage regardless of your down payment. PMI protects the lender against you defaulting on the loan, and only applies when your down payment is under 20%. So you'll always pay homeowners insurance — but PMI is the one you can avoid with a down payment of 20% or more.
Some lenders offer "lender-paid PMI," where the cost is built into a slightly higher interest rate instead of a separate monthly fee. Piggyback loan structures and certain VA loans can also avoid traditional PMI. Each option trades one cost for another, so it's worth comparing the total cost over the life of the loan.
A 15-year loan has higher monthly payments but dramatically less total interest and faster equity. A 30-year loan keeps payments lower and more flexible, which can matter if your income varies. Switch the loan term above and compare the "Total interest" figure to see the real difference in dollars for your numbers.
More than most people expect. Even a 1% difference in rate can change your monthly payment by hundreds of dollars and your lifetime interest by tens of thousands. Try moving the interest rate slider up and down to see the effect on your specific loan amount.
Your interest rate is the cost of borrowing the principal. APR (Annual Percentage Rate) includes the interest rate plus most lender fees and closing costs, expressed as a yearly percentage — which is why APR is usually slightly higher and is the better number for comparing loan offers side by side.
A fixed-rate mortgage keeps the same interest rate for the entire term, which is what this calculator assumes. An adjustable-rate mortgage (ARM) usually starts lower but can rise or fall after an initial period. Fixed rates offer predictability; ARMs can save money short-term if you plan to move or refinance before the rate adjusts.
Yes — change the term using the preset buttons or the custom year input, and every result updates instantly: monthly payment, total interest, payoff date and the full amortization schedule. Try toggling between 15, 20 and 30 years to see the full trade-off for your loan amount.
Property taxes are billed annually or semi-annually by your county, but most lenders collect 1/12th of the yearly amount each month and hold it in escrow, paying the tax bill on your behalf. That's why your monthly mortgage payment includes more than just principal and interest.
Lenders require homeowners insurance for the life of the loan, and like property tax, it's usually collected monthly through escrow. Insurance costs vary widely by state, home age, construction type and flood or hurricane risk — so an accurate estimate here makes a real difference in your total payment.
HOA (Homeowners Association) dues are fees paid to a community association for shared amenities and upkeep. They're not part of your loan and aren't collected in escrow, but they're a real monthly cost on top of your mortgage payment — which is why this calculator includes them in your total.
Yes. Most counties reassess property values periodically, and tax rates can change with local budgets and ballot measures. Some areas also reassess immediately after a sale, sometimes raising the tax bill above what the previous owner paid — it's worth checking with the county assessor for any specific property.
An escrow account is held by your lender to collect a portion of your annual property tax and insurance bills with every monthly payment, so you're not hit with one large bill once a year. Your lender pays the tax authority and insurance company directly when those bills come due.
Amortization is the schedule that pays off your loan in equal monthly payments over the full term. Each payment is split between interest (calculated on your remaining balance) and principal (which reduces what you owe) — early payments are mostly interest, and later payments are mostly principal, even though the total payment stays the same.
It can be significant — even a modest amount like $100–$300 extra per month can shave years off a 30-year loan and save tens of thousands in interest, because that extra amount applies entirely to principal rather than interest. Use the early payoff calculator above to see the exact numbers for your loan.
Yes. Paying half your monthly payment every two weeks results in 26 half-payments per year — the equivalent of one extra full payment annually — without you really noticing the difference in your budget. Toggle "Pay bi-weekly" above to see how many years it can cut off your term.
A lump sum applied directly to your principal immediately reduces your remaining balance, which lowers the interest charged on every future payment for the rest of the loan. The earlier in your loan term you apply it, the bigger the long-term effect, since more of your future payments are still interest-heavy.
Interest is calculated each month based on your current remaining balance, which is highest at the very start of the loan. As you pay down principal over time, the interest portion of each payment shrinks and the principal portion grows — even though your total monthly payment doesn't change on a fixed-rate loan.
A common guideline is keeping your total housing payment — principal, interest, taxes, insurance and HOA — under 28% of your gross monthly income, though lenders often allow more depending on your other debts and credit profile. Plug in different home prices above to see how the monthly payment compares to your budget.
Requirements vary by loan type and lender, but conventional loans typically want a score of at least 620, FHA loans can go as low as 580 (or even 500 with a larger down payment), and the best interest rates are usually reserved for scores of 740 and above.
Most lenders look for a total debt-to-income (DTI) ratio — all monthly debts including the new mortgage divided by gross monthly income — under 43%, though some loan programs allow higher with strong compensating factors like a large down payment or excellent credit.
Closing costs typically run 2–5% of the loan amount and cover things like loan origination fees, appraisal, title insurance, and prepaid taxes and insurance. On a $400,000 loan, that's roughly $8,000–$20,000 — worth budgeting for separately from your down payment.
Conventional loans aren't backed by the government and usually require stronger credit. FHA loans are government-insured with lower down payment and credit requirements, but require mortgage insurance for most or all of the loan term. VA loans, available to eligible service members and veterans, often require no down payment and no PMI at all.
It includes principal, interest, property taxes, homeowners insurance, PMI and HOA dues, then shows your total monthly payment, total interest paid, payoff date, and a full amortization schedule by year or by month — plus a dedicated early payoff planner for extra payments, lump sums and bi-weekly schedules.
No. All calculations happen locally in your browser using JavaScript — nothing you type is transmitted to a server, stored in a database, or shared with anyone, including us. You can close the tab and nothing is retained.
Very close for principal, interest and PMI math, since those follow the same standard, fixed formulas lenders use. Property taxes, insurance and HOA fees are estimates you provide, so the more specific you make them — using a real listing or a quote from your insurer — the more accurate your total monthly payment will be.
Yes. Just enter your current loan balance instead of a home price, set the down payment to zero, and use your new proposed rate and term. The payoff calculator is especially useful for comparing how a refinance changes your total interest and payoff date versus your existing loan.
Yes, completely. There's no sign-up, no email required, and no hidden fees — every feature on this page, including the amortization schedule and payoff planner, is free to use as many times as you'd like.