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Example data
| Home price | Down payment | Rate | Term | Tax (annual) | Insurance (annual) | PMI rate | Estimated monthly total |
|---|---|---|---|---|---|---|---|
| $350,000 | 20% | 6.25% | 30 years | $4,200 | $1,500 | 0.55% | Varies by PMI, HOA, and extras |
| $280,000 | $28,000 | 5.75% | 20 years | $3,000 | $1,200 | 0.65% | Higher PI, lower total interest overall |
| $500,000 | 10% | 6.80% | 30 years | $6,500 | $2,000 | 0.85% | PMI increases monthly costs until it drops |
These examples are illustrative. Your lender may calculate escrow and PMI differently.
Formula used
1) Loan amount = Home price − Down payment.
2) Monthly interest rate r = (Annual rate ÷ 100) ÷ 12.
3) Number of payments n = Term years × 12.
4) Monthly principal + interest (when r > 0):
PI = P × r × (1+r)^n ÷ ((1+r)^n − 1)
5) Monthly escrow = (Annual tax + Annual insurance) ÷ 12.
6) Monthly PMI estimate (only if down payment < 20%):
PMI = Loan amount × (PMI rate ÷ 100) ÷ 12
7) Total monthly payment = PI + Escrow + PMI + HOA + Extra payment.
How to use this calculator
- Enter the home price and choose down payment as percent or amount.
- Add the interest rate and loan term in years.
- Fill annual property tax and annual home insurance for escrow estimates.
- If your down payment is under 20%, enter an estimated PMI rate.
- Optionally add monthly HOA dues and an extra monthly payment.
- Click Calculate payment to see results above the form.
- Use Download CSV for the full amortization schedule, or Download PDF for a summary.
This tool estimates payments. Lenders may use different escrow cushions, PMI cancellation rules, and rounding. Always confirm the final numbers with official disclosures.
Breaking down the monthly payment
The calculator separates your payment into principal, interest, escrow, PMI, HOA, and optional extra principal. For a $350,000 home with 20% down, the loan is $280,000. At 6.25% for 30 years, principal and interest are computed from the standard amortization equation, then the monthly insurance and tax estimates are added. If HOA dues are $150, they are added monthly, and an extra $200 accelerates payoff.
Insurance and tax escrow impact
Escrow converts annual costs into a predictable monthly reserve. If property taxes are $4,200 and insurance is $1,500, escrow is $475 per month. This amount does not reduce the loan balance, but it changes affordability because lenders often qualify borrowers using the full monthly payment including escrow.
PMI estimate and drop-off logic
When the down payment is under 20%, the tool estimates PMI using the entered annual PMI rate and the current loan amount. A 0.55% PMI rate on a $315,000 loan adds about $144 per month. For planning, the chart and schedule reduce PMI once the balance reaches roughly 80% of the original loan. Actual cancellation rules vary, so treat it as an estimate.
Scenario testing with term and rate
Try shorter terms to see the tradeoff between higher monthly PI and lower lifetime interest. For example, moving from 30 years to 20 years increases principal payments, yet total interest can fall dramatically. Small rate changes matter too: a 0.50% rate drop can save thousands over the loan’s life. A $200 extra payment can cut months and interest noticeably.
Using exports for planning and review
The amortization table shows how each payment shifts from interest-heavy to principal-heavy over time. Use the CSV export to filter months, sum interest by year, or model refinancing. The PDF summary is useful for budgeting conversations, because it lists assumptions, total payment, payoff estimate with extras, and the projected payoff date. Match the start date to closing.
FAQs
What does the total monthly payment include?
It adds principal and interest to escrowed property tax and home insurance, then includes estimated PMI when down payment is under 20%. Optional HOA dues and extra principal payments are also included.
How is escrow calculated?
Escrow is the annual property tax plus annual insurance, divided by 12. Some lenders add a cushion, so your actual escrow payment may be slightly higher than this estimate.
When does PMI apply in this calculator?
PMI is estimated when the down payment percentage is below 20%. The monthly PMI equals loan amount multiplied by the PMI rate, divided by 12, then it is reduced once the balance reaches about 80%.
Does an extra payment change the principal and interest amount?
The scheduled principal and interest payment stays the same, but the extra amount is applied to principal. That reduces the balance faster, shortens the payoff time, and lowers total interest paid.
Why might my lender’s numbers differ?
Lenders may round differently, use specific day-count conventions, require escrow reserves, or apply different PMI cancellation rules. Rates, fees, and insurance premiums can also vary by location and policy.
What do the CSV and PDF downloads contain?
The CSV provides the full amortization schedule with monthly breakdowns and balances. The PDF provides a concise summary of your inputs, estimated monthly totals, payoff timing with extras, and total interest.