Estimate your monthly principal & interest payment on a home loan.
This calculator covers principal and interest (P&I) only, compounded monthly over your chosen term. It does not include property taxes, homeowners insurance, mortgage insurance (PMI), or HOA fees — all of which are commonly bundled into a real monthly mortgage bill and can add hundreds of dollars a month depending on your location and lender.
Lenders typically require PMI when your down payment is below 20% of the home price, since it protects them if you default early in the loan. Once you've built up 20% equity, you can usually request that PMI be removed.
On a $350,000 home with a $70,000 down payment (20%), you'd borrow $280,000. At 6.75% over 30 years, that comes to roughly $1,816 a month in principal and interest, and around $373,700 in total interest paid over three decades — more than the home's original price.
Shortening the term to 15 years at the same rate raises the monthly payment noticeably, but can cut total interest paid by more than half, since the loan compounds for far fewer periods.
Why is my real mortgage bill higher than this estimate?
Most lenders collect property tax and insurance monthly through an escrow account alongside your P&I payment. Ask your lender for the full "PITI" (Principal, Interest, Taxes, Insurance) figure for an accurate monthly cost.
Should I put down more than 20%?
A larger down payment lowers your loan amount, avoids PMI, and reduces total interest — but it also ties up more cash. Whether that trade-off makes sense depends on your other financial goals and how the money would otherwise be invested.
15-year or 30-year term — which is better?
A 15-year term saves substantially on interest and builds equity faster, but comes with a higher required monthly payment. A 30-year term is more flexible on cash flow, at the cost of paying more interest overall.
Does a higher interest rate always mean a worse deal?
Generally yes for the same loan amount and term, but points, fees, and loan type (fixed vs. adjustable) also affect the true cost — compare the full loan estimate, not just the headline rate.
Using the amortization formula based on loan amount, interest rate, and term.
Only if explicitly added (often called PITI) — a basic calculator may show principal and interest only.
It reduces the loan amount and may help avoid PMI if it brings loan-to-value to 80% or below.