Home Loan Calculator

Calculate home loan payments including P&I, tax, insurance, PMI, and HOA. Compare down payment scenarios and view annual amortization schedules.

About the Home Loan Calculator

A home loan (mortgage) is the largest financial commitment most people make. Understanding your true monthly obligation — not just principal and interest, but property tax, insurance, PMI, and HOA — prevents budget surprises and ensures you buy within your means.

The monthly payment depends on home price, down payment, interest rate, and loan term. But the full PITI (principal, interest, taxes, insurance) payment is what matters for your budget. Adding PMI for less than 20% down and HOA fees gives you the complete picture.

This calculator provides a comprehensive home loan analysis. Enter your purchase details to see exact monthly payments with a visual breakdown, down payment comparison table showing how different down payment amounts affect your payment and PMI, and an annual amortization schedule tracking equity building. Whether you are a first-time buyer or upgrading, these numbers drive your most important financial decision.

Why Use This Home Loan Calculator?

Most basic mortgage calculators only show principal and interest. This calculator includes the full monthly housing cost — taxes, insurance, PMI, and HOA — so you can compare homes on a realistic budget basis. The down payment comparison helps you see exactly how much extra cash is needed to reduce PMI and lower your payment.

How to Use This Calculator

  1. Enter the home price you are considering.
  2. Set down payment percentage (3.5% FHA, 5%, 10%, 20%).
  3. Input the interest rate and choose the loan term.
  4. Add annual property tax and home insurance amounts.
  5. Include monthly HOA fees if applicable.
  6. Review total monthly payment and the visual breakdown.
  7. Compare down payment scenarios in the table.

Formula

P&I = Loan × [r(1+r)^n] / [(1+r)^n − 1]. PMI = ~0.5% of loan/year if LTV > 80%. PITI = P&I + Tax/12 + Insurance/12 + PMI + HOA.

Example Calculation

Result: $2,077/mo P&I — $2,602/mo PITI — No PMI — Total interest: $427,800

A $400K home with 20% down ($80K) finances $320K at 6.75% for 30 years. P&I is $2,077/mo. Adding $400/mo property tax and $125/mo insurance brings the total to $2,602/mo. With 20% down, no PMI is required. Total interest over 30 years is $427,800.

Tips & Best Practices

Budgeting for a Purchase

Base affordability on the full PITI payment, not just principal and interest. Property taxes and insurance vary widely by location, so the same home price can produce very different monthly costs.

Down Payment Strategy

Use the down payment comparison to test 5%, 10%, 15%, and 20% scenarios. Crossing 20% down can remove PMI and materially lower the payment.

Before You Offer

Run the calculator with a slightly higher rate and realistic tax and insurance estimates so the purchase budget has room for market movement and lender requirements.

Sources & Methodology

Last updated:

Methodology

This page calculates the fixed principal-and-interest mortgage payment from the home price, down payment, rate, and term, then adds user-entered property tax, insurance, HOA dues, and a simplified PMI estimate when the down payment is below the assumed threshold. The down-payment comparison table reruns that same framework across several down-payment levels so the user can see how financing size, PMI, and total monthly housing cost move together.

The output is a planning worksheet rather than an underwriter decision or Closing Disclosure. Actual PMI pricing, escrow reserves, and lender qualification rules vary by borrower profile and product, so the final loan estimate and servicer disclosures control.

Sources

Frequently Asked Questions

How much house can I afford?

A common guideline is to keep total housing costs (PITI + HOA) under 28% of gross monthly income, and total debt payments under 36%. Lenders may qualify you for more, but 28/36 provides a comfortable budget.

What is PMI and how do I avoid it?

Private Mortgage Insurance protects the lender if you default. It is required when your down payment is less than 20% (LTV > 80%). You can avoid it by putting 20% down, using a piggyback loan (80/10/10), or choosing a lender credit option at a higher rate.

Should I choose 15 or 30 years?

A 30-year mortgage has lower payments (~40% less) but costs much more in total interest. A 15-year builds equity faster and saves significantly on interest. Choose 30-year if you need payment flexibility; 15-year if you can handle the higher payment.

What are closing costs?

Closing costs typically run 2-5% of the home price and include lender fees, appraisal, title insurance, attorney fees, and prepaid taxes/insurance. On a $400K home, expect $8K-$20K in closing costs on top of your down payment.

How does the interest rate affect my payment?

Every 1% increase in rate raises your P&I by about 10-12% on a 30-year loan. On a $320K loan, 6.75% costs $2,077/mo vs $2,240/mo at 7.75% — a $163/month difference, or $58,700 over 30 years.

When does PMI go away?

You can request PMI removal when your loan balance reaches 80% of the original purchase price. PMI automatically terminates at 78% LTV. Some lenders also remove it based on a new appraisal showing sufficient equity.

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