Mortgage Calculator

Calculate your monthly payment and view complete amortization schedule

Loan Details

Home Price

Down Payment

20% down payment

Interest Rate

Loan Term

Property Tax (Annual)

PMI Rate

Payment Summary

Monthly Payment

$1,621.50

Principal

$240,000

Total Interest

$343,740

Total Payment

$583,740

Principal & Interest$1,621.50

Property Tax (Monthly)$300.00

PMI (Monthly)$100.00

Total Monthly Payment$2,021.50

Amortization Schedule

Month	Payment	Principal	Interest	PMI	Remaining

How This Calculator Works

US Standard Amortization Formula

This calculator uses the standard US mortgage amortization formula to compute your monthly payment:

M = P × [r(1+r)^n] / [(1+r)^n - 1]

M = Monthly payment
P = Principal loan amount (home price minus down payment)
r = Monthly interest rate (annual rate ÷ 12 ÷ 100)
n = Total number of payments (loan term in years × 12)

Principal and Interest Allocation

Each monthly payment consists of two parts: principal (the amount borrowed) and interest (the cost of borrowing). During the early years of the loan, a larger portion of each payment goes toward interest. As the loan progresses, more of each payment is applied to the principal balance.

Private Mortgage Insurance (PMI)

PMI is required when the loan-to-value (LTV) ratio exceeds 80%, meaning your down payment is less than 20% of the home value. The PMI rate is applied annually to the loan amount and divided by 12 for monthly payments.

According to the Homeowners Protection Act of 1998, lenders must automatically cancel PMI when the LTV reaches 78% of the original home value through regular payments. Borrowers may also request cancellation when LTV reaches 80%.

Property Tax

Annual property taxes are divided by 12 to determine the monthly tax payment. Property tax rates vary by location, with the US average ranging from 0.5% to 2% of the home's assessed value.

Official Standards & Authoritative Sources

CFPB

Consumer Financial Protection Bureau

consumerfinance.gov

HUD

U.S. Department of Housing and Urban Development

hud.gov

Fannie Mae

Federal National Mortgage Association

fanniemae.com

Freddie Mac

Federal Home Loan Mortgage Corporation

freddiemac.com

IRS Pub 936

Mortgage Interest Deduction Guidelines

irs.gov/publications/p936

Homeowners Protection Act

PMI Cancellation Requirements (1998)

congress.gov

Frequently Asked Questions

What is a mortgage amortization schedule?

An amortization schedule is a table showing each periodic payment on a mortgage loan. It details the amount of principal and interest paid with each payment, as well as the remaining balance after each payment.

How does PMI get cancelled automatically?

Under the Homeowners Protection Act of 1998, lenders must automatically terminate PMI when the loan balance reaches 78% of the original home value through regular monthly payments. This typically happens after several years of payments as the principal balance decreases.

What is the difference between fixed-rate and adjustable-rate mortgages?

A fixed-rate mortgage has the same interest rate for the entire loan term, providing predictable monthly payments. An adjustable-rate mortgage (ARM) has an interest rate that can change periodically, typically tied to a financial index. This calculator focuses on fixed-rate mortgages.

How does my credit score affect my mortgage rate?

Credit scores are a key factor lenders use to determine mortgage rates. Higher credit scores typically qualify for lower interest rates, while lower scores may result in higher rates or require larger down payments.

Are mortgage payments tax-deductible?

Mortgage interest and property taxes may be tax-deductible for eligible homeowners. For detailed information, refer to IRS Publication 936 or consult a qualified tax professional.