Enter loan and escrow details
Example data table
| Scenario | Home Price | Down | APR | Tax (yr) | Ins (yr) | Extra (mo) | Total (mo) |
|---|---|---|---|---|---|---|---|
| Standard 20% down | 350,000.00 | 20% | 6.50% | 4,200.00 | 1,500.00 | 0.00 | 2,244.79 |
| Lower down with PMI | 350,000.00 | 10% | 6.50% | 4,200.00 | 1,500.00 | 0.00 | 2,623.51 |
| Extra payment | 350,000.00 | 20% | 6.50% | 4,200.00 | 1,500.00 | 250.00 | 2,494.79 |
Formula used
- Loan amount: P = Home Price − Down Payment
- Monthly rate: r = (APR ÷ 100) ÷ 12
- Number of payments: n = Term Years × 12
- Monthly principal & interest: M = P × [r(1+r)n] ÷ [(1+r)n − 1] (if r = 0, then M = P ÷ n)
- Monthly escrow items: Taxes = Annual Taxes ÷ 12, Insurance = Annual Insurance ÷ 12
- PMI estimate: PMI = (P × PMI Rate ÷ 100) ÷ 12 when LTV > 80%
- Total payment: Total = M + Taxes + Insurance + HOA + PMI + Extra Payment
How to use this calculator
- Enter the home price and choose down payment as amount or percent.
- Set term and APR, then add annual taxes and annual insurance.
- Add HOA and an optional extra payment to see the impact.
- Enable PMI if your down payment is below 20%.
- Click Calculate split to view results above the form.
- Use the CSV or PDF buttons to download your summary.
Understanding the monthly split
A mortgage payment is rarely one number. Most borrowers pay principal and interest to the lender, while escrow items like property taxes and insurance are collected monthly and paid later. This calculator separates those pieces so you can see the true cash flow required each month and spot which line items are driving the total. Use the charts to test rate changes, escrow updates, and paydown options before shopping, so offers can be compared on equal terms quickly.
Principal and interest behavior over time
At the start of a loan, interest consumes a large share because it is computed on the current balance. As the balance falls, interest shrinks and the principal portion rises. In a typical 30-year schedule at 6.50% APR, the first-year payments can be mostly interest, while later years accelerate principal reduction. The balance chart visualizes this shift.
Escrow and predictable budgeting
Annual taxes and insurance become steady monthly amounts when divided by 12. For example, taxes of 4,200 per year add 350 per month, and insurance of 1,500 adds 125. Escrow often feels “hidden” because it does not reduce the loan balance, but it is still required cash. Tracking these values helps prevent payment shock at renewal time.
PMI and the 80% threshold
If your loan-to-value starts above 80%, lenders may charge PMI. This tool estimates PMI as an annual percentage of the original loan amount, converted to monthly. PMI is commonly temporary and may drop once your balance reaches about 80% of the home value, subject to lender rules. Comparing scenarios with different down payments shows how PMI affects affordability.
Using extra payments strategically
Extra monthly payments apply directly to principal, reducing the balance faster and lowering future interest. Even 250 per month can shorten payoff months and cut total interest, while your escrow items remain unchanged. Use the split chart to confirm the new total payment and the payoff estimate to quantify the time savings before committing to a plan.
FAQs
Why is my total payment higher than principal and interest?
Your total can include property tax, homeowners insurance, HOA dues, PMI, and any extra principal payment. These items increase cash outflow but do not necessarily reduce the loan balance.
Does the calculator include closing costs or lender fees?
No. It focuses on recurring monthly costs. If you want fees included, convert them into an equivalent monthly amount and add them to your HOA or extra payment field for planning.
How is PMI estimated here?
PMI is estimated as a yearly percentage of the original loan amount, divided by 12, and shown only when the starting loan-to-value is above 80%. Actual PMI pricing and cancellation rules vary.
Why does the interest share drop over time?
Interest is calculated on the remaining balance each month. As you pay down principal, the balance falls, so the interest charge declines and more of each payment goes toward principal.
Will extra payments always shorten the payoff time?
Typically yes, if your lender applies the extra to principal and you keep paying it consistently. However, some loans have prepayment rules. Confirm your lender’s policy before relying on the estimate.
Are taxes and insurance always escrowed?
Not always. Some borrowers pay them directly. Even without escrow, these costs still affect your monthly budget, so entering them helps you compare true affordability across homes.