How the calculation works
Principal = home price − down payment. Principal and interest use the fixed-rate loan formula. Estimated monthly housing cost adds annual property tax / 12, annual insurance / 12, monthly HOA, and your monthly PMI estimate.
Work through an example
For a $300,000 home with $60,000 down, the loan is $240,000. Over 30 years at 6% interest, principal and interest are about $1,438.92 per month. Adding $3,600 yearly property tax and $1,200 yearly insurance gives about $1,838.92 before HOA, PMI, or extra payments.
Assumptions and limitations
The note interest rate is nominal annual interest, not APR. Taxes, insurance, HOA, and the entered PMI amount are held constant. PMI eligibility and cancellation are not calculated. Extra payments shorten the loan term. Closing costs, maintenance, variable rates, escrow changes, and tax benefits are excluded.
The displayed defaults are examples, not live rates. Results are before tax unless explicitly stated. Figures are calculated at full precision, with amounts rounded for display, so adding displayed rows may differ by a small rounding amount.
Questions about this calculator
Should I enter APR or the interest rate?
Enter the loan's note interest rate. APR also reflects certain fees and is not the rate used by this payment formula.
Does PMI automatically stop at a certain balance?
No. The monthly PMI amount is your estimate and stays constant in the housing-cost breakdown. Ask your servicer about cancellation requirements.
Keep the comparison useful
Save one calculation before changing an input. Keep the other assumptions fixed, then compare the result with the saved calculation. For borrowing, look at the total interest and repayment time as well as the scheduled payment. For investing, compare contributions with growth and remember that a constant return is only an illustration.
The table provides the numerical checkpoints behind the chart. Download it as CSV if you want to inspect the values elsewhere. A comparison stays in this tab only and is lost when you reload. No account is needed.
Background reading: CFPB: mortgage payment components. Our calculator, worked examples, and explanations are created for SumHatch; the linked organisation does not endorse this tool.
Methodology updated November 10, 2026.