Monthly Mortgage Payment Calculator

Loan Amount ($)
Down Payment %
Interest Rate %
Loan Term (months)
Annual Property Tax %
Annual Home Insurance ($)
Annual HOA Fee ($)
Private Mortgage Insurance (PMI)


Principal & Interest Expense:
HOA Expense:
PMI Expense:
Total Monthly Payment:

Monthly Payment Distribution


Monthly Mortgage Payment Components:

The monthly mortgage payment is primarily derived from the following components:

    • Loan Amount

      —The amount borrowed from the bank. This is usually the price of the home.

    • Down Payment

      —The percentage of the loan amount that is paid upfront. This reduces the amount of money that is required to be paid back over time.

    • Interest Rate

      —The interest rate of the loan.

    • Loan Term

      —The amount of time over which the loan will be paid back. Usually 15 or 30 years (180 or 360 months).

    • Annual Property Tax

      —Every property owner is required to pay a tax to the governing authorities. Although there may be slight variations across states, the average rate of annual property tax in the US is between 1-4% of the property value.

    • Annual Home Insurance

      —It is an insurance policy that protects a homeowner from possible accidents to the property, although it may include personal liability coverage – a form of protection against lawsuits emanating from injuries sustained on and off the property. The lender will require the owner purchase home insurance. This will be included in the mortgage.

    • Annual HOA Fee

      —The property owner is often required to pay a certain amount to an organization that oversees the maintenance and improvement of the neighborhood the home is located in.  The value is usually less than 1% of the property value annually.

    • Private Mortgage Insurance

      —It is an insurance policy that protects the mortgage lender if the borrower fails to repay the mortgage. It ranges from 0.3-1.5% of the loan amount annually, and the exact price depends on factors like the credit of the borrower, the size of the loan, and down payment. If a down payment of less than 20% is made, then PMI will be added to your mortgage payment.



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