Mortgage Calculator
This mortgage calculator estimates your full monthly payment, not just principal and interest. Enter the home price, down payment, interest rate and term, then add property taxes, insurance, HOA dues and PMI to see the payment you would actually make each month, along with total interest and your payoff date.
Monthly P&I, taxes, insurance, PMI, and full amortization schedule. Default rates sourced from Freddie Mac's weekly PMMS survey, the same benchmark used by major U.S. lenders. PMI calculated using industry standard tables. Conforming loan limits updated annually per FHFA guidelines.
Amortization Schedule
Payment Breakdown
How This Mortgage Calculator Works
This calculator computes your exact monthly mortgage payment using standard monthly compound amortization formulas. Unlike basic tools that only show Principal and Interest (P&I), MortiVio incorporates property taxes, homeowners insurance, private mortgage insurance (PMI), and HOA dues to display your true out-of-pocket monthly housing expense.
What Is Included in a Monthly Mortgage Payment (PITI)
A monthly mortgage payment usually consists of four main parts, known collectively as PITI:
- Principal: The portion of your payment that directly reduces your remaining loan balance.
- Interest: The fee charged by your lender for borrowing capital, calculated monthly based on your remaining principal balance.
- Taxes: Real estate property taxes collected by your county or municipality, held in escrow by your lender.
- Insurance: Homeowners insurance protecting against property damage. Private Mortgage Insurance (PMI) is added if your loan-to-value ratio exceeds 80%.
How PMI Works and When It Drops Off
Private Mortgage Insurance (PMI) protects conventional lenders against borrower default when your down payment is less than 20% (LTV > 80%). PMI rates vary based on your LTV tier and credit score:
PMI Rate Table by Loan-to-Value (LTV)
| LTV Tier | Annual PMI Rate | Monthly Fee on $320,000 Loan | Cancellation Rule |
|---|---|---|---|
| ≤ 80.00% | 0.00% | $0 / mo | No PMI required |
| 80.01% – 85.00% | 0.30% | $80.00 / mo | Cancel at 80% LTV / Auto-stop at 78% |
| 85.01% – 90.00% | 0.50% | $133.33 / mo | Cancel at 80% LTV / Auto-stop at 78% |
| 90.01% – 95.00% | 0.80% | $213.33 / mo | Cancel at 80% LTV / Auto-stop at 78% |
| > 95.00% | 1.00% | $266.67 / mo | Cancel at 80% LTV / Auto-stop at 78% |
Under the Homeowners Protection Act, servicers must automatically terminate PMI once your balance reaches 78% of the original home price, provided payments are current.
Understanding Your Amortization Schedule
In fixed-rate mortgages, your total P&I payment remains identical every month, but the distribution between interest and principal shifts dramatically over time. During Year 1, interest accounts for over 80% of each payment. By Year 20, principal repayment becomes the primary component.
Example Scenarios
Example: A $400,000 home with a 20% down payment ($80,000) leaves a $320,000 loan balance. At 6.58% over 30 years, the principal and interest payment is about $2,040 per month. Adding property tax at 1.25% ($417/mo), homeowners insurance at $1,500/yr ($125/mo), and no HOA dues brings total monthly PITI to roughly $2,581 per month. There is no PMI because LTV is exactly 80%.
Monthly Payment by Interest Rate ($320,000 Loan, 30-Year Fixed)
| Interest Rate | Monthly P&I | Total Interest (30 Years) | Total Loan Payment |
|---|---|---|---|
| 5.50% | $1,816.92 | $334,093 | $654,093 |
| 6.00% | $1,918.56 | $370,682 | $690,682 |
| 6.58% (base) | $2,039.48 | $414,214 | $734,214 |
| 7.00% | $2,128.97 | $446,430 | $766,430 |
| 7.50% | $2,237.49 | $485,496 | $805,496 |
PITI Breakdown ($400,000 Home, 20% Down at 6.58%)
| Component | Monthly Amount | Percentage Share |
|---|---|---|
| Principal & Interest (P&I) | $2,039.48 | 79.0% |
| Property Taxes (1.25%) | $416.67 | 16.1% |
| Homeowners Insurance ($1,500/yr) | $125.00 | 4.9% |
| PMI / HOA | $0.00 | 0.0% |
| Total Monthly Payment | $2,581.15 | 100.0% |
15-Year vs 30-Year Comparison ($320,000 Loan at 6.58%)
| Loan Term | Monthly P&I | Total Interest Paid | Interest Savings |
|---|---|---|---|
| 30-Year Fixed | $2,039.48 | $414,214 | — |
| 15-Year Fixed | $2,800.86 | $184,155 | $230,059 Saved |
Assumptions and Limitations
- Property taxes, insurance premiums, and HOA dues are assumed to stay flat for the 30-year life of the loan. In practice, local property taxes and homeowners insurance premiums typically rise over time due to municipal re-assessments and inflation.
- PMI is priced using standard baseline LTV tiers (0.30%–1.00%) for conventional loans. Actual Borrower-Paid Mortgage Insurance (BPMI) rates range from 0.19% to 1.86% depending on your exact FICO credit score and credit profile.
- Calculations assume standard fixed-rate compound monthly amortization.
Frequently Asked Questions
How much house can I afford on my income?
A common guideline is that your total monthly housing payment should stay at or below 28% of your gross monthly income, and all monthly debt payments including the mortgage should stay at or below 36%. On a $90,000 salary ($7,500 gross per month), that is roughly $2,100 for housing and $2,700 for all debts. Lenders may approve higher ratios, but the limit that matters most is the payment you can comfortably sustain. Use our Affordability Calculator for a customized figure based on your debt profile.
What is included in a monthly mortgage payment?
A monthly mortgage payment usually has four parts, known as PITI: principal, interest, property taxes and homeowners insurance. If your down payment is below 20% on a conventional loan you also pay private mortgage insurance (PMI), and a condo or planned community may add HOA dues. Only principal and interest are fixed on a fixed-rate loan; taxes, insurance and HOA dues change over time.
How is the monthly mortgage payment calculated?
Principal and interest come from the standard amortization formula: M = P × r / (1 - (1 + r)^-n), where P is the loan amount, r is the annual interest rate divided by 12, and n is the number of monthly payments. On a $320,000 loan at 6.58% for 30 years, r is 0.0054833 and n is 360, which gives a principal and interest payment of about $2,040 per month. Taxes, insurance, PMI and HOA dues are added on top.
When can I stop paying PMI?
On most conventional loans, PMI can be cancelled at your request once the balance reaches 80% of the original property value, and the servicer must automatically terminate it at 78% based on the original amortization schedule, provided payments are current. Extra principal payments or a documented higher appraised value can move that date earlier. FHA loans use a different rule: mortgage insurance often lasts for the life of the loan when the down payment is under 10%.
Should I choose a 15-year or a 30-year mortgage?
A 15-year loan carries a higher monthly payment but a lower rate and far less total interest, while a 30-year loan keeps the payment low and leaves more room in your budget. On a $320,000 loan, moving from 30 years to 15 years increases the monthly payment by roughly 45% while cutting total interest by more than half. If cash flow flexibility matters, a 30-year loan with voluntary extra principal payments captures most of the savings without locking in the higher payment. Learn more using our Extra Payment Calculator and Biweekly Payment Calculator.
Related Calculators
Explore our complete suite of mortgage calculation tools:
- Affordability Calculator — Determine maximum purchasing price based on income and DTI.
- Refinance Calculator — Calculate breakeven timing on a rate reduction.
- Extra Payment Calculator — Model mortgage payoff acceleration strategies.
- Biweekly Payment Calculator — Compare 26 biweekly drafts vs 12 monthly payments.
Sources & Methodology
Amortization logic strictly follows federal compounding regulations. References include:
- CFPB Real Estate Settlement Procedures Act (RESPA) — Escrow account and disclosures standards.
- Fannie Mae Selling Guide — LTV limits and PMI cancellation criteria.
Assumptions Used in This Calculator
- Property taxes and homeowners insurance are held constant for the full loan term. In practice both typically rise 2%–4% per year, so long-horizon totals shown here are conservative and your actual escrow payment will grow over time.
- PMI is estimated from loan-to-value tiers only. Actual private mortgage insurance ranges from roughly 0.19% to 1.86% of the loan amount annually and depends heavily on your credit score, loan type, term, and coverage level. Borrowers with FICO scores above 760 typically pay near the bottom of that range.
- PMI removal is modeled at 78% LTV based on the original amortization schedule, matching automatic termination under the Homeowners Protection Act. You may request cancellation at 80% LTV, which is earlier.
Last updated: July 2026. All calculations run client-side in your browser. MortiVio stores transient preferences using local browser storage (FormStorage).
Disclaimer
The results shown by this calculator are estimates for educational purposes only and are not a loan offer, a pre-approval, or financial advice. Actual payments depend on your lender, credit profile, property location, taxes, insurance, HOA dues, and loan program rules, and may differ from the figures shown here. Rates change daily. Consult a licensed mortgage professional before making a decision.
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