Total monthly payment
$2,572.62
everything included
Principal & interest
$2,022.62
on a $320,000 loan
Total interest
$408,142
over 30 years
What makes up the monthly payment
Loan amount
$320,000
20.0% down
Total of all payments
$728,142
principal & interest only
How the Mortgage Calculator Works
PITI — the four parts of a payment
A mortgage payment is more than the loan. Principal and interest repay the borrowing itself, calculated with the standard amortisation formula payment = principal × r ÷ (1 − (1 + r)⁻ⁿ). On top of that, property tax and homeowners insurance are usually collected monthly by your lender into escrow. Together these four make up PITI — and the difference between the principal-and-interest figure and the true monthly outlay often surprises first-time buyers.
PMI and the 20% threshold
If your down payment is under 20% of the price, lenders typically require private mortgage insurance. It protects the lender rather than you, and is charged as a percentage of the loan amount — commonly 0.3% to 1.5% per year. This calculator only adds PMI when your down payment falls below that threshold. It is not permanent: once you build 20% equity you can usually ask for it to be removed.
Term length is the biggest lever
Switching between 15, 20 and 30 years shows the trade-off clearly. A longer term lowers the monthly payment but multiplies the total interest, because you borrow the money for longer — on a 30-year loan the interest can approach the amount borrowed. A shorter term costs more each month and far less overall.
What is not included
Homeowners association dues, maintenance, utilities and closing costs are all real costs of owning a home, but none are part of the mortgage payment — budget for them separately.
Frequently asked questions
What is included in a monthly mortgage payment?
Four things, often shortened to PITI: principal, interest, taxes and insurance. Principal and interest repay the loan itself; property tax and homeowners insurance are usually collected by the lender into an escrow account and paid on your behalf. If your down payment is under 20%, private mortgage insurance (PMI) is added on top.
What is PMI and when do I have to pay it?
Private mortgage insurance protects the lender, not you, if you default. It is normally required when your down payment is less than 20% of the home price, and typically costs between 0.3% and 1.5% of the loan amount per year. Once you build 20% equity you can usually request that it be removed, so it is a temporary cost rather than a permanent one.
How much should my down payment be?
20% is the figure that avoids PMI and gets you the best rates, but plenty of loans allow far less. A larger down payment means a smaller loan, a lower monthly payment and less interest over the term — weighed against tying up cash you might need elsewhere.
Is a 15-year or 30-year mortgage better?
A 15-year term has a noticeably higher monthly payment but costs dramatically less in total interest, because you are borrowing the money for half as long and usually at a lower rate. A 30-year term keeps the monthly payment affordable but you pay far more overall. Try both terms here and compare the total interest.
Why is the total interest so much larger than I expected?
Because interest is charged on the outstanding balance every month for decades. On a 30-year loan, the interest can approach or exceed the amount borrowed. Shortening the term or overpaying reduces it sharply, since both cut the balance the interest is calculated on.
Does this include HOA fees or maintenance?
No. This calculator covers principal, interest, property tax, homeowners insurance and PMI. Homeowners association dues, maintenance, utilities and closing costs are all real costs of owning a home but are not part of the mortgage payment itself — budget for them separately.