Mortgage calculator with taxes, insurance and PMI
On a $320,000 mortgage at 6.5% for 30 years, the principal and interest payment is $2,022.62 a month. Add property tax, homeowners insurance, HOA dues and PMI (if you put down less than 20%) to get your real monthly PITI payment, then download the full amortization schedule.
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📌 Key facts
- Principal and interest equal L × r ÷ (1 − (1 + r)^−n), with r the monthly rate and n the number of payments.
- On a $320,000 loan at 6.5% for 30 years, principal and interest are $2,022.62 a month.
- A 15-year loan at 5.75% costs $2,657.31 a month on the same amount but far less interest.
- PITI adds property tax and homeowners insurance to principal and interest, plus HOA dues and PMI when they apply.
- PMI can be cancelled on request at 80% of the original value and ends automatically at 78%.
How a mortgage payment is calculated
Most U.S. mortgages are fully amortizing: you pay the same principal and interest every month, and the split shifts over time. Early payments are mostly interest; late payments are mostly principal.
P&\( I = \dfrac{L \times r}{1 - (1 + r)^{-n}} \) L = loan amount, r = APR ÷ 12, n = number of monthly payments
Your lender then adds your escrow items to get the PITI payment: Principal, Interest, property Taxes and homeowners Insurance. HOA dues and PMI are added on top.
| Piece | How we estimate it |
|---|---|
| Property tax | Home price × tax rate ÷ 12 |
| Homeowners insurance | Yearly premium ÷ 12 |
| PMI | Loan × PMI rate ÷ 12, only if the down payment is under 20% |
When PMI goes away
Private mortgage insurance protects the lender when your loan-to-value (LTV) is above 80%. Under the Homeowners Protection Act you can ask your servicer to cancel PMI once your balance reaches 80% of the original home value, and it ends automatically at 78%. This calculator drops PMI when the scheduled balance reaches 80% of the home price and shows how many months that takes. FHA loans use a different mortgage insurance rule, so treat the result as an estimate if you are using one.
15-year vs 30-year: the interest gap
On a $320,000 loan, a shorter term raises the payment but cuts the interest sharply, and lenders usually offer a lower rate on 15-year loans.
| Loan | Rate | P&I per month | Total interest |
|---|---|---|---|
| 30-year | 6.50% | $2,022.62 | $408,142 |
| 15-year | 5.75% | $2,657.31 | $158,316 |
Mortgage calculator: PITI explained with an example
PITI stands for principal, interest, taxes and insurance. Take the $2,022.62 payment on a $320,000 loan. First, add property tax: at 1% of a $400,000 home, that is $4,000 a year, or $333 a month. Then add homeowners insurance of $1,800 a year, or $150 a month. Next, add PMI if your down payment is under 20%.
So the real monthly cost lands near $2,500 before PMI and HOA dues. That is why a mortgage calculator with taxes and insurance gives a truer number than a simple payment formula.
Mortgage calculator: reading the amortization schedule
The schedule shows how each payment splits. In the first years, most of the payment is interest. Later, most is principal. For example, on a 30-year loan at 6.5%, the first payment on $320,000 has about $1,733 of interest and only about $289 of principal.
As a result, extra payments early in the loan save the most. Also, the schedule helps you see when your balance reaches 80% of the home's value, the point where PMI can end.
Mortgage calculator: what to do next
After the payment, work on the rest of the plan. First, test your budget with the home affordability calculator. Then estimate cash due with the closing cost calculator. Next, model extra payments in the mortgage payoff calculator.
If rates fall later, try the refinance calculator. Finally, compare owning with renting through the rent vs buy calculator.
3 real-life examples
$400,000 home, 20% down, 6.5% for 30 years
Loan: $320,000. Principal and interest: $2,022.62. With property tax at 1% ($333.33) and $1,800 a year of insurance ($150), your PITI is $2,505.95 a month. No PMI, since you put 20% down. Total interest over 30 years: $408,142.
Same home with 10% down
Loan: $360,000. Principal and interest: $2,275.44. PMI at 0.5% adds $150 a month, so the total is $2,908.78. PMI runs about 95 months, until the balance falls to 80% of $400,000 ($320,000). After that, the payment drops to $2,758.78.
Choosing a 15-year loan
Same $320,000 loan at 5.75% for 15 years: $2,657.31 a month, about $635 more than the 30-year payment at 6.5%, but you save roughly $249,800 in interest and own the home free and clear 15 years sooner.