When does PMI go away?

On a conventional loan you can usually ask to cancel PMI once your balance reaches 80% of the home's original value, and it ends automatically at 78%. FHA mortgage insurance follows different rules.

Do extra payments really save money?

Yes. Extra payments go straight to principal, so every later payment carries less interest. The schedule below shows the interest saved and the new payoff date.

Does the monthly payment include closing costs?

No. Closing costs are paid once, at closing, on top of the down payment. Use the Closing Cost Calculator to estimate them and the total cash you'll need.

Buying a home

Mortgage Calculator

Q: What does PITI mean?

Principal, interest, taxes and insurance: the four parts of a typical monthly mortgage payment. HOA dues and PMI are added on top when they apply.

See what a home will really cost each month. Enter the price, down payment and rate to get principal and interest plus property tax, insurance, HOA dues and private mortgage insurance, then add an extra monthly payment to see how much interest and time you save.

Estimated monthly payment

$2,427

On a $300,000 loan over 30 years

$2,427per month

Principal & interest: $1,896
Property tax: $344
Homeowner's insurance: $188
HOA: $0
PMI: $0
Total interest over the loan: $382,633

Amortization schedule

Year	Principal	Interest	Balance
1	$3,353	$19,401	$296,647
2	$3,578	$19,177	$293,069
3	$3,817	$18,937	$289,252
4	$4,073	$18,681	$285,179
5	$4,346	$18,409	$280,833
6	$4,637	$18,118	$276,196
7	$4,947	$17,807	$271,249
8	$5,279	$17,476	$265,970
9	$5,632	$17,122	$260,338
10	$6,009	$16,745	$254,328
11	$6,412	$16,343	$247,916
12	$6,841	$15,913	$241,075
13	$7,299	$15,455	$233,776
14	$7,788	$14,966	$225,987
15	$8,310	$14,445	$217,677
16	$8,866	$13,888	$208,811
17	$9,460	$13,294	$199,351
18	$10,094	$12,661	$189,257
19	$10,770	$11,985	$178,487
20	$11,491	$11,263	$166,996
21	$12,261	$10,494	$154,735
22	$13,082	$9,673	$141,653
23	$13,958	$8,797	$127,695
24	$14,893	$7,862	$112,803
25	$15,890	$6,864	$96,912
26	$16,954	$5,800	$79,958
27	$18,090	$4,665	$61,868
28	$19,301	$3,453	$42,567
29	$20,594	$2,161	$21,973
30	$21,973	$781	$0

How the payment is calculated

The formula

Monthly principal and interest

M = P × r(1 + r)ⁿ(1 + r)ⁿ − 1

M: Monthly principal and interest
P: Loan amount: the home price minus the down payment
r: Monthly interest rate: the annual rate ÷ 12, as a decimal
n: Number of monthly payments: the term in years × 12

Monthly property tax

Property tax = Home price × Annual tax rate12

Annual tax rate: The yearly property tax as a percentage of the home price

Monthly homeowner's insurance

Insurance = Annual premium12

Annual premium: The yearly cost of the homeowner's insurance policy

Estimated PMI (under 20% down)

PMI = Loan amount × 1%Loan term in months

Loan amount: The home price minus the down payment
Loan term in months: The term in years × 12; PMI is $0 at 20% down or more

Total monthly payment

Payment = M + Property tax + Insurance + HOA + PMI

HOA: Monthly homeowners association dues

Principal and interest use the standard fixed-rate amortization math, so the figure matches the payment on a conventional fixed-rate loan with the same amount, rate and term. Early payments are mostly interest; the share going to principal grows every month, which the amortization schedule shows year by year.

Property tax and homeowner's insurance are spread evenly over 12 months, the way a lender collects them through an escrow account. Your actual tax bill depends on your county's assessment and can change after a sale, and insurance premiums vary by location and coverage.

PMI is added only when the down payment is under 20%. The estimate is the same one RealtyTrac's property pages use, and it is a placeholder: lenders price PMI on your credit score, down payment and loan, and FHA, VA and USDA loans use their own mortgage insurance or fees instead. Any extra monthly payment goes straight to principal, and the schedule is recalculated to show the interest saved and the earlier payoff date.

Results are estimates for planning, not a loan offer or financial advice. Lenders, title companies and local rules set the actual figures.

Terms used in this calculator

MortgageMortgages & financingA mortgage is a loan used to buy real estate, secured by the property itself. If the borrower stops paying, the lender can take the property through foreclosure to recover what is owed.PITIMortgages & financingPITI stands for principal, interest, taxes and insurance, the four parts of a typical monthly mortgage payment. Lenders use it to judge whether a borrower can afford a home.AmortizationMortgages & financingAmortization is the process of paying off a loan with regular, fixed payments over time. Early payments go mostly to interest; later payments go mostly to principal.Private Mortgage Insurance (PMI)Mortgages & financingPrivate mortgage insurance (PMI) protects the lender, not the borrower, if a borrower defaults on a conventional loan. It is usually required when the down payment is less than 20% of the home's value.Down PaymentMortgages & financingA down payment is the part of a home's purchase price the buyer pays upfront in cash rather than borrowing. It is usually stated as a percentage of the price and is due at closing.EscrowBuying & closingEscrow is an arrangement where a neutral third party holds money or documents until the conditions of a deal are met. The term also refers to the account a lender uses to pay a borrower's property taxes and insurance.Loan-to-Value Ratio (LTV)Mortgages & financingLoan-to-value ratio (LTV) compares the size of a mortgage with the property's value. A lower LTV means more equity and less risk for the lender, which often brings better loan terms.Mortgage Pre-ApprovalMortgages & financingA mortgage pre-approval is a lender's conditional commitment to lend up to a set amount, based on verified income, assets and credit. Sellers often expect one before accepting an offer.

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Frequently Asked Questions

Guides to read next

How Much House Can You Afford?Guide · 6 min readThe right price is the one you can pay every month without strain and still keep savings for repairs and emergencies. This guide shows how lenders measure affordability, what they leave out, and how to build a budget that works for you.How to Get Pre-Approved for a MortgageGuide · 7 min readA pre-approval tells you, and the sellers you make offers to, how much a lender is prepared to lend after checking your income, assets and credit. This guide explains how it differs from pre-qualification, what to gather, how to compare lenders and what can change the answer before closing.Closing Costs Explained: What Buyers Pay and WhyGuide · 9 min readClosing costs are the fees and prepaid expenses due when a purchase completes, on top of the down payment. They vary by state, loan and price, and some are negotiable. This guide explains each category, how to read your disclosures and how to keep costs down.

More calculators

Home Affordability CalculatorThe price range your income and debts support under the 28/36 rule.Refinance CalculatorMonthly savings, lifetime interest and the break-even point.Closing Cost CalculatorLine-by-line closing costs and cash needed at closing.Rent vs. Buy CalculatorThe total cost of owning versus renting over your time in the home.

Disclaimer: The information on this page is for general educational purposes only and is not legal, financial, tax or investment advice. Laws, lending rules and market conditions vary by state and change over time, and any figures shown are estimates. Before you buy, sell, finance or bid on a property, consult a qualified attorney, financial advisor, lender or licensed real estate professional about your situation.