Principal
The portion that reduces what you owe. Early in a 30-year loan it is a small slice — on a $320,000 loan at 6.5%, only about $290 of the first $2,023 payment touches the balance.
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See the whole mortgage payment, not just the part lenders advertise.
Most calculators show principal and interest and stop there. This one adds property taxes, insurance, PMI and HOA dues, then explains where every dollar goes.
Down payment: $80,000 · Loan amount: $320,000
Estimated monthly payment
$2,539.28
Where your monthly payment goes
- Principal & interest$2,02380%
- Property taxes$36714%
- Homeowners insurance$1506%
- Principal & interest
- $2,022.62
- Property taxes
- $366.67
- Homeowners insurance
- $150.00
Total interest over 30 years$408,142
Total of 360 payments$728,142
Estimates are for education only and assume a fixed-rate loan. Your actual payment depends on the lender's quoted rate, your county's tax assessment, insurance premiums and escrow requirements.
What makes up a monthly mortgage payment
Lenders group four costs into one payment and call it PITI. Understanding the split is the difference between budgeting for a mortgage and being surprised by one.
Interest
The lender's charge on the outstanding balance, recalculated every month. Because the balance falls slowly at first, interest dominates the first decade of payments.
Taxes
County property tax, usually collected monthly into an escrow account. Rates commonly run 0.5% to 2.2% of assessed value per year depending on where you buy.
Insurance
Homeowners coverage your lender requires, plus PMI if you put down less than 20%. Flood or wind coverage may be added in coastal counties.
| Line item | Monthly | Yearly |
|---|---|---|
| Principal & interest | $2,023 | $24,276 |
| Property taxes (1.1%) | $367 | $4,400 |
| Homeowners insurance | $150 | $1,800 |
| PMI (not owed at 20% down) | $0 | $0 |
| Total payment | $2,540 | $30,476 |
Figures rounded to the nearest dollar. Change any input above to model your own scenario.
Which loan type fits your situation
The right program depends on your credit, cash on hand, service history and the property's location — not on which one advertises the lowest rate.
Conventional
3% – 20% downNot government-backed. Best when your credit is 620+ and you can reach 20% equity to drop PMI. Loan limits apply above the conforming ceiling.
FHA
3.5% downBacked by the Federal Housing Administration and friendlier to lower credit scores. Trade-off: an upfront fee plus annual mortgage insurance that often lasts the life of the loan.
VA
0% downFor eligible service members, veterans and surviving spouses. No down payment, no monthly mortgage insurance, but a one-time funding fee unless exempt.
USDA
0% downFor qualifying rural and some suburban addresses, with household income caps. Comes with its own guarantee fee instead of standard PMI.
Mortgage questions, answered directly
What does the calculator actually include?+
Principal and interest from the standard amortization formula, plus property taxes, homeowners insurance, PMI when your down payment is under 20%, and any HOA dues you enter. That total is what lenders call PITI.
How is the monthly payment formula calculated?+
M = P × r / (1 − (1 + r)^−n), where P is the loan amount, r is the monthly interest rate (annual rate ÷ 12) and n is the number of payments (years × 12). A $320,000 loan at 6.5% over 30 years works out to about $2,023 in principal and interest.
When can I stop paying PMI?+
On conventional loans, you can generally request cancellation once you reach 20% equity, and it automatically terminates at 22% based on the original amortization schedule. FHA mortgage insurance usually cannot be cancelled unless you put 10% or more down.
How much house can I afford?+
Most lenders want total housing costs under about 28% of gross monthly income and total debt under roughly 36% to 43%. On a $90,000 salary, that points to a housing payment near $2,100 per month — including taxes and insurance, not just principal and interest.
Should I choose a 15-year or 30-year term?+
A 15-year loan carries a higher monthly payment but far less interest. On a $320,000 loan, 30 years at 6.5% costs roughly $408,000 in interest, while 15 years at 6.0% costs about $166,000 — a payment difference of around $680 per month.
Buying in a high-insurance state?
Property taxes and homeowners insurance vary far more by location than interest rates do. Our Florida guide loads real county tax rates and premium ranges for seven metros so you can see the difference on the same loan.
Florida mortgage calculator & cost guideHow we build these tools
Transparent math
Every result uses the standard amortization formula, published on the page so you can check it against your loan estimate.
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Calculations run locally. We do not ask for your name, email, phone number or credit score, and we do not sell leads.
Reviewed and dated
Guides are reviewed against current federal program rules and updated when limits, fees or insurance rules change.
Educational, not advice
We are not a lender or broker. Use these estimates to prepare for a conversation with a licensed loan officer.