Mortgage Payment Calculator
Break a mortgage payment into its pieces — principal and interest, PMI you can switch on or off, taxes and insurance — so you can see exactly what you are paying for each month.
A payment is four payments wearing one coat
Lenders advertise one monthly figure, but it is really four: principal and interest owed to the bank, private mortgage insurance if your down payment was under 20%, and the escrow slices for property taxes and insurance. Knowing the pieces matters — when the payment jumps a year in, it is almost never the loan that changed; it is the escrow, repriced against new tax and insurance bills.
Payment = P&I + PMI (if any) + taxes ÷ 12 + insurance ÷ 12
Example: on a $300,000 loan at 6%, P&I is $1,798.65. PMI at 0.5% of the loan per year adds $125.00; taxes of $3,600 a year add $300; insurance of $1,800 adds $150. The full payment: $2,373.65.
PMI: the passenger that eventually gets out
Private mortgage insurance protects the lender, not you, and it is priced as a yearly percentage of the original loan. It is not forever: once the balance falls to about 80% of the home's value you can usually have it removed, and it terminates automatically around 78%. The switch in this calculator lets you price the payment with it and picture life without it.
How this is calculated
Principal and interest use the standard amortization formula (nominal rate ÷ 12, payments at month end). PMI is computed as the annual PMI rate times the original loan amount, divided by 12 — the way most servicers bill it — and shown at its starting level; it does not step down inside this calculation, which is why the page notes when it typically falls away. Taxes and insurance are annual figures divided by 12.
Frequently asked questions
Why did my mortgage payment go up if my rate is fixed?
Because the escrow part moved. Your servicer re-estimates property taxes and insurance each year; when they rise, the monthly escrow slice rises with them, even though the loan itself never changed.
How long do I pay PMI?
Until your balance reaches roughly 80% of the home's value, when you can request removal, with automatic termination near 78% — assuming payments are current. FHA loans follow different rules (see the FHA calculator).
Can I pay taxes and insurance myself instead of escrow?
Sometimes, on loans with substantial equity — lenders call it an escrow waiver. Many require escrow precisely so tax and insurance bills are never missed.
Is the tax figure here exact?
It is your annual tax bill divided by twelve. Enter the real bill from your county statement for an exact escrow figure; the calculator's job is the arithmetic, not the assessment.
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