$2,697
- Principal & interest
- $2,181
- Loan amount
- $320,000
- Total interest over the loan
- $465,086
How this is calculated: standard fixed-rate amortization (principal & interest), plus property tax, homeowners insurance, HOA dues and PMI entered as monthly costs. Estimates only — your lender’s actual quote depends on your credit, loan type and local rates.
How the mortgage payment is calculated
The principal-and-interest portion uses the standard fixed-rate amortization formula: M = P × r(1 + r)ⁿ ÷ ((1 + r)ⁿ − 1), where P is the loan amount, r is the monthly rate (annual rate ÷ 12) and n is the number of monthly payments. Property tax, insurance, HOA dues and PMI are added as monthly amounts.
Assumptions
- Loan type. Fixed-rate, fully amortizing. No balloon payments or interest-only periods.
- Property tax and insurance. Entered as annual amounts and divided by 12. Your actual bills depend on assessed value and your insurer.
- PMI and HOA. You enter them as monthly amounts. PMI usually applies when the down payment is under 20% and ends as equity grows.
- Not included. Closing costs, utilities, maintenance and income-tax effects.
Mortgage calculator FAQ
What is included in my estimated monthly payment?
Principal and interest on the loan, plus property tax, homeowners insurance, HOA dues and PMI if you enter them. Lenders call this PITI.
Why is my lender's number different?
Lenders use your credit, exact rate, tax bill and insurance quote. Use this tool for planning and your Loan Estimate for the real figures.
Does a larger down payment lower my payment?
Yes. It reduces the loan amount, and it can remove the need for PMI at 20%.
Sources
- Owning a Home tools and guides. Consumer Financial Protection Bureau.
- What is a debt-to-income ratio?. Consumer Financial Protection Bureau.
Updated 11/05/2026. How we update