Calculator Inputs
Example Data Table
| Home Price | Down % | Rate | Term | Tax / Year | Insurance / Year | HOA / Month | PMI % | Closing % | Cash to Close | Required Monthly |
|---|---|---|---|---|---|---|---|---|---|---|
| $350,000 | 15.00% | 6.75% | 30 years | $4,200.00 | $1,800.00 | $95.00 | 0.65% | 2.20% | $56,200.00 | $2,685.73 |
This example shows one possible scenario. Actual lender pricing, reserves, and taxes can vary by location and borrower profile.
Formula Used
Monthly principal and interest uses the standard fixed-rate amortization formula:
M = P × [r(1+r)^n] ÷ [(1+r)^n − 1]
- M = monthly principal and interest
- P = loan amount
- r = monthly interest rate
- n = total monthly payments
Required monthly payment = principal and interest + monthly tax + monthly insurance + HOA + PMI. Planned monthly outflow adds your extra principal payment.
How to Use This Calculator
- Enter the home price.
- Choose whether you want to enter the down payment as a percent or amount.
- Add your estimated mortgage rate and loan term.
- Fill in yearly property tax, yearly insurance, and monthly HOA dues.
- Add PMI and closing cost assumptions if applicable.
- Include seller credits and optional extra monthly principal.
- Press calculate to see cash to close, monthly cost, LTV, payoff timing, and the Plotly chart.
Frequently Asked Questions
1) What does this calculator estimate?
It estimates down payment, loan amount, closing costs, cash to close, monthly mortgage expenses, PMI effect, and a simple balance-versus-equity projection for a conventional purchase scenario.
2) How much down payment usually avoids PMI?
Many conventional loans stop requiring PMI once your starting down payment reaches 20% or your balance later falls low enough. Lender rules can vary.
3) Are closing costs the same as the down payment?
No. Down payment reduces the borrowed amount. Closing costs are separate transaction expenses, such as lender fees, title charges, prepaid taxes, and insurance items.
4) Can seller credits reduce my cash to close?
Yes. Seller credits can offset eligible closing expenses. They usually do not replace your minimum required down payment, but they can reduce upfront cash needed at settlement.
5) Why is my monthly total higher than principal and interest?
Because most buyers also pay property taxes, insurance, HOA dues, and sometimes PMI. The calculator combines those pieces into a fuller monthly ownership estimate.
6) Does extra principal lower the required payment?
Usually no. It mainly reduces balance faster, shortens payoff time, and may help you reach lower LTV milestones earlier. Your scheduled payment generally stays the same.
7) Should I enter taxes and insurance as annual values?
Yes. This page expects annual property tax and annual homeowners insurance. HOA is entered monthly so the payment estimate can combine each component correctly.
8) Is this a loan approval or lender quote?
No. It is a planning tool. Final loan terms depend on credit, reserves, debt ratios, pricing adjustments, lender overlays, and property-specific underwriting details.