About this calculator
A mortgage payment is more than the loan itself. For most homeowners the monthly bill combines four parts — principal, interest, property taxes and homeowners insurance (often shortened to PITI) — and sometimes a fifth, HOA dues. Lenders usually collect the tax and insurance portions into an escrow account, so the amount that leaves your bank account each month is the combined figure this calculator shows.
The split between principal and interest changes over time. In the early years most of each payment is interest; later, most is principal. The amortization schedule below the calculator shows that shift year by year, along with your remaining balance.
How to use it
- Enter the home price and your down payment — the difference is the loan amount.
- Add the interest rate and loan term (30 and 15 years are the most common).
- Pick your state to apply its average effective property tax rate — or switch the basis to custom and enter your own annual tax bill. Add homeowners insurance and HOA dues if any.
- Read the total monthly payment, then scan the amortization table to see how your balance falls each year.
The formula
M is the monthly principal-and-interest payment, P is the loan amount, r is the monthly interest rate (annual rate ÷ 12), and n is the number of monthly payments (years × 12). Taxes, insurance and HOA are then added on top because they do not depend on the loan balance.
Worked example
A $400,000 home with $80,000 down leaves a $320,000 loan. At 6.5% over 30 years, principal and interest come to $2,022.62 a month. At the US average effective property tax rate of 0.90%, tax adds $3,600 a year ($300 a month), and $1,800 a year of insurance adds $150 — a total monthly payment of $2,472.62. Location changes that total a lot: the same home in New Jersey (1.88%) carries $7,520 a year in tax, while in Hawaii (0.29%) it carries just $1,160. Over the life of the loan you would pay $408,142.36 in interest — more than the amount borrowed, which is why the rate and term matter so much.
Sources: Standard amortization formula; default property-tax rates are 2025 state average effective rates (Tax Foundation). Last updated: October 2026.
Frequently asked questions
What is included in a monthly mortgage payment?
Principal (the part that reduces your balance), interest, property taxes and homeowners insurance — together called PITI. If your home has HOA dues or you pay mortgage insurance (PMI), those are added too. This calculator covers everything except PMI.
How much house can I afford on my salary?
A common guideline is the 28/36 rule: housing costs at or below 28% of gross monthly income, and total debts at or below 36%. Lenders also look at your down payment, credit score and other debts, so treat the rule as a starting point, not an approval.
Is a 15-year or 30-year mortgage better?
A 15-year mortgage has a higher monthly payment but a much lower rate and total interest — on a $320,000 loan at typical rates you save well over $200,000 in interest. A 30-year mortgage keeps the monthly payment lower, which can be safer for cash flow. Compare both terms above to see the trade-off with your own numbers.
What is an amortization schedule?
It is a table showing, for every period, how much of your payment went to principal, how much to interest, and what balance remains. Early payments are mostly interest; by the final years they are almost entirely principal.
How much is property tax in my state?
Effective property tax rates vary enormously: New Jersey and Illinois average about 1.88% of home value per year, while Hawaii averages 0.29% and Alabama 0.37%. The US average is about 0.90%. Pick your state in the calculator to use its average rate (Tax Foundation figures based on Census data) — or enter your actual tax bill with the custom basis if you know it. Your county and city can differ a lot from the state average.
Does this calculator include PMI?
No. If your down payment is under 20%, your lender will usually add private mortgage insurance (PMI), often 0.3%–1.5% of the loan amount per year, until you reach 20% equity. Ask your lender for an exact figure.
What formula does this mortgage calculator use?
M = P × r(1 + r)^n ÷ ((1 + r)^n − 1) M is the monthly principal-and-interest payment, P is the loan amount, r is the monthly interest rate (annual rate ÷ 12), and n is the number of monthly payments (years × 12). Taxes, insurance and HOA are then added on top because they do not depend on the loan balance. The worked example on this page applies the formula step by step with real numbers, so you can verify the result by hand.