Mortgage Calculator with Taxes, Insurance & Extra Payments
Your mortgage payment is more than principal and interest. Enter your home price, taxes, insurance, PMI and HOA to see your true monthly housing cost (PITI), then test how extra payments shrink your total interest. Everything runs in your browser; nothing is uploaded.
Cumulative principal vs. interest paid each year (with your extra payments). The dashed line shows the interest you would pay with no extra payments. Assumes a fixed rate for the life of the loan; taxes and insurance are held constant at the amounts you entered.
View year-by-year amortization schedule
Educational use only: this calculator is for educational purposes only and does not constitute financial advice. Consult a qualified financial advisor before making decisions.
Assumptions: fixed interest rate for the life of the loan; property tax and homeowner's insurance held constant at the amounts entered; PMI removed automatically once the balance falls below 80% of the home value; extra payments applied to principal each month. Actual payments vary with rate adjustments, tax reassessments, and escrow changes.
How to use this calculator
- Home price and down payment — the dollar and percent fields stay in sync. A down payment under 20% triggers PMI, which the calculator adds automatically and drops once your balance falls below 80% of the home price.
- Rate and term — enter the annual rate from your loan estimate. A 15-year term roughly doubles the principal portion of each payment but can cut total interest by more than half.
- Taxes, insurance, HOA — these are collected with your mortgage payment (often into escrow) and are part of what lenders actually evaluate. Do not skip them or your "affordable" payment will be fiction.
- Extra principal payment — an optional amount added to every monthly payment. Watch the green callout: it shows exactly how much interest you save and how many years you shave off.
- PMI rate — typically 0.5%–1% of the loan per year. Adjust it to match your loan estimate, or leave the default.
The formula behind it
The principal-and-interest payment M comes from the standard amortization formula:
M = P × r(1+r)n / ((1+r)n − 1)
where P is the loan amount, r is the monthly rate (annual rate ÷ 12), and n is the number of payments. Your full monthly cost is then PITI + PMI + HOA: principal, interest, property taxes, homeowners insurance, private mortgage insurance, and HOA dues.
Want the full breakdown with a worked example? Read our guide: Mortgage Calculator With Taxes and Insurance: How Your True Monthly Payment Is Calculated.
Frequently asked questions
How is my monthly mortgage payment calculated?
The principal-and-interest portion uses the standard amortization formula: M = P x r(1+r)^n / ((1+r)^n - 1), where P is the loan amount, r is the monthly interest rate (annual rate divided by 12), and n is the total number of monthly payments. For example, a $300,000 loan at 6.5% for 30 years (360 payments) gives a monthly principal-and-interest payment of about $1,896.20. Taxes, insurance, PMI and HOA are then added on top to get the full monthly housing cost.
What does PITI stand for?
PITI stands for Principal, Interest, Taxes and Insurance — the four components of a typical mortgage payment. Principal and interest go to the lender to pay down the loan; property taxes and homeowners insurance are usually collected monthly into an escrow account and paid on your behalf. Many lenders also require PMI (private mortgage insurance) and you may owe HOA dues, so the true monthly cost is often PITI plus PMI plus HOA.
When does PMI drop off?
On a conventional loan, you can generally request PMI cancellation once your balance reaches 80% of the original home value, and the lender must drop it automatically at 78% if you are current on payments. This calculator stops charging PMI in its schedule once the balance falls below 80% of the home price. FHA loans have different mortgage-insurance rules that usually last longer, so check your loan type.
Are biweekly mortgage payments really better?
Biweekly payments work because 26 half-payments per year equal 13 full monthly payments — one extra payment per year. That extra principal shortens the loan and cuts total interest substantially. But the magic is the extra payment, not the schedule: adding one-twelfth of your payment to each monthly payment achieves the same result. Beware of third-party biweekly programs that charge setup fees for something you can do yourself for free.
Do extra principal payments reduce total interest?
Yes. Every extra dollar goes directly against the principal, so future interest is calculated on a smaller balance — you effectively earn a risk-free return equal to your mortgage rate on each extra payment. For example, adding $200 per month to a $300,000, 6.5%, 30-year loan saves roughly $103,000 in interest and pays the loan off about 7 years early. Make sure your loan has no prepayment penalty first.