Mortgage Calculator

Last Verified: July 2026

Calculate monthly mortgage payments (PITI) with property tax, insurance, PMI, and HOA fees. Compare US vs. Canadian compounding standards.

Home Price$400,000
$
$10k$2.0M
Down Payment (20.0%)
$
$0$400,000
Interest Rate6.5%
%
0%15%
Loan Term30 Years
Property Tax Rate1.2%
%
Home Insurance (Annual)$1,200/yr
$
HOA Fees (Monthly)$0/mo
$
PMI Rate (Annual)0% (N/A)
%
Total Monthly Payment
$2,522.62
PITI + HOA
$2,523
P&I$2,023 (80%)
Taxes$400 (16%)
Insurance$100 (4%)
Loan Principal$320,000
Down Payment$80,000
Total Payments$908,142

Loan Amortization Schedule

Visualize how your mortgage balance declines over time. Hover or tap the chart to view details for a specific year.

Selected Year
Hover chart below
Remaining Balance
—
Cumulative Principal
—
Cumulative Interest
—
$320,000$240,000$160,000$80,000$0Yr 1Yr 6Yr 11Yr 16Yr 21Yr 26Yr 30
YearPrincipal PaidInterest PaidTotal Interest PaidRemaining Balance
Year 1$3,577$20,695$20,695$316,423
Year 2$3,816$20,455$41,150$312,607
Year 3$4,072$20,200$61,349$308,535
Year 4$4,345$19,927$81,276$304,191
Year 5$4,636$19,636$100,912$299,555
Year 6$4,946$19,325$120,238$294,609
Year 7$5,277$18,994$139,232$289,332
Year 8$5,631$18,641$157,873$283,701
Year 9$6,008$18,264$176,136$277,694
Year 10$6,410$17,861$193,998$271,284
Year 11$6,839$17,432$211,430$264,444
Year 12$7,297$16,974$228,404$257,147
Year 13$7,786$16,485$244,889$249,361
Year 14$8,308$15,964$260,853$241,053
Year 15$8,864$15,407$276,260$232,189
Year 16$9,458$14,814$291,074$222,732
Year 17$10,091$14,180$305,255$212,641
Year 18$10,767$13,505$318,759$201,874
Year 19$11,488$12,784$331,543$190,386
Year 20$12,257$12,014$343,557$178,129
Year 21$13,078$11,193$354,750$165,051
Year 22$13,954$10,317$365,068$151,097
Year 23$14,888$9,383$374,451$136,208
Year 24$15,886$8,386$382,837$120,323
Year 25$16,949$7,322$390,159$103,373
Year 26$18,085$6,187$396,345$85,289
Year 27$19,296$4,976$401,321$65,993
Year 28$20,588$3,683$405,004$45,405
Year 29$21,967$2,305$407,309$23,438
Year 30$23,438$833$408,142$0
Assumptions, Limitations & Mathematical Formulas
Compounding Conventions:
  • United States: Interest is compounded monthly. Periodic interest rate $r = R / 1200$.
  • Canada: Legally compounded semi-annually. Converts annual rate $R$ to equivalent monthly rate $r = (1 + R / 200)^0.16666666666666666 - 1$.
PMI (Private Mortgage Insurance):Required by conventional lenders on down payments below 20%. Automatically estimated via brackets (1.5% for <5% down, 1.0% for 5-10% down, 0.5% for 10-20% down) and canceled once home equity reaches 20% (80% LTV).
Calculators Sources & Legal Citations:
  • Formula standard derived from US CFPB guidelines and Freddie Mac fixed-rate repayment principles.
  • Canadian compounding adjustments conform to the Canadian Interest Act (R.S.C. 1985, c. I-15).

About the Mortgage Calculator

A mortgage is a debt instrument secured by the collateral of specified real estate property, which the borrower is obliged to pay back with a predetermined set of payments. The monthly mortgage payment is primarily composed of Principal and Interest (P&I) to repay the loan sum, but lenders also package monthly allocations for local property taxes, homeowners insurance, and private mortgage insurance (PMI). In personal finance, purchasing a home is typically an individual's largest lifetime financial transaction, making mortgage planning critical. Historically, the 30-year fixed-rate mortgage has been the standard in United States housing, providing rate stability and budget predictability. Understanding how down payments, annual interest rates, and loan terms affect overall interest payments allows prospective homebuyers to optimize their purchasing power, minimize lifetime borrowing costs, and avoid entering unaffordable loan agreements.

Mathematical Formula & Logic

The monthly Principal and Interest (P&I) payment for a fixed-rate mortgage is calculated using the amortization formula: M = P × [ ( r × (1 + r)^n ) / ( (1 + r)^n - 1 ) ] Where: - M = Total monthly principal and interest payment - P = Principal loan amount (home price minus down payment) - r = Monthly interest rate (annual interest rate / 12 / 100) - n = Total number of monthly payments (loan tenure in years × 12) Note: The total monthly housing cost is computed by adding escrow costs (monthly property tax and homeowners insurance) and monthly PMI if the down payment is less than 20%.

Step-by-Step Example

Calculate the monthly P&I payment for a $400,000 home with a 20% down payment ($80,000) on a 30-year fixed-rate mortgage at 6% annual interest: 1. Compute principal loan amount: P = $400,000 - $80,000 = $320,000 2. Compute monthly rate: r = 6 / 12 / 100 = 0.005 3. Compute total payments: n = 30 × 12 = 360 payments 4. Apply formula: M = 320,000 × [ ( 0.005 × (1.005)^360 ) / ( (1.005)^360 - 1 ) ] 5. Calculate compounding factor: (1.005)^360 ≈ 6.022575 6. Compute numerator: 0.005 × 6.022575 = 0.030113 7. Compute denominator: 6.022575 - 1 = 5.022575 8. Calculate monthly P&I payment: M = 320,000 × (0.030113 / 5.022575) ≈ $1,918.56 (rounded to $1,919)

Reference Data & Values

interest ratemonthly pitotal interestlifetime cost
5.0% p.a.$1,718$298,393$618,393
6.0% p.a.$1,919$370,681$690,681
7.0% p.a.$2,129$446,403$766,403
8.0% p.a.$2,348$525,291$845,291

Frequently Asked Questions

A monthly mortgage payment typically includes Principal (repaying the borrowed money) and Interest (the lender's fee), known as P&I. It often also includes escrow items: Property Taxes, Homeowners Insurance, Private Mortgage Insurance (PMI) if you put down less than 20%, and Homeowner Association (HOA) fees.
US mortgages compound interest monthly, meaning the annual interest rate is simply divided by 12. Canadian mortgages are legally required to compound interest semi-annually (twice a year). This means Canadian mortgages have a slightly lower effective monthly interest rate for the same quoted nominal rate, resulting in a slightly lower monthly payment.
Private Mortgage Insurance (PMI) is required by lenders on conventional loans if your down payment is less than 20% of the home purchase price. It protects the lender in case you default on the loan. PMI usually costs between 0.3% and 1.5% of the loan amount annually and is split into monthly payments.
PMI can be cancelled once you have reached 20% equity in your home (meaning your Loan-to-Value ratio drops to 80%). Under the Homeowners Protection Act, lenders must automatically terminate PMI when your balance reaches 78% of the original home value, provided you are current on payments.
If the interest rate is 0%, the monthly Principal and Interest payment is simply the total loan principal divided by the total number of amortization months. Escrow fees like taxes, homeowners insurance, and HOA fees are calculated independently and added to this base.
In the United States, you can deduct mortgage interest on the first $750,000 of debt ($375,000 if married filing separately) for qualified homes if you itemize deductions. In Canada, mortgage interest on primary residences is generally not tax-deductible.
A larger down payment reduces the principal loan amount, which lowers your monthly interest charges and payment. Furthermore, putting down at least 20% eliminates the need for Private Mortgage Insurance (PMI), reducing your monthly bill even further.
An amortization schedule is a table showing each payment over the life of the loan. It details how much of each payment goes toward the principal balance versus how much goes toward interest, along with the remaining balance after each payment.