JB PARCELMortgage Calculator
Your real monthly payment, not just principal and interest. Add taxes, insurance, PMI, HOA, discount points, and extra principal, and see exactly what the loan costs and when it pays off.
How this calculator works
Monthly principal and interest comes from the standard amortization formula: M = P × r(1 + r)n / ((1 + r)n − 1), where P is the loan amount, r is the monthly rate, and n is the number of payments. Every month, interest is charged on the outstanding balance first, and whatever is left of your payment reduces principal. That is why year one is almost all interest and year twenty-five is almost all principal.
The escrow line is separate from the loan. Property taxes and homeowners insurance are annual bills your servicer collects monthly and pays for you. PMI applies when your down payment is under 20 percent and drops once you are below 80 percent loan-to-value. HOA dues never go through escrow but they still hit your account, so they belong in the total.
Extra principal is the one input that changes the shape of the loan. It skips straight past the interest and shortens the term, which is why a few hundred dollars a month can cut years off a thirty-year note. The amortization table below the results updates as you type so you can see the balance drop.
Worked example: a Rutherford County rental
Say you are buying a three-bedroom in Murfreesboro at $340,000 with 20 percent down at 6.75 percent on a 30-year note.
| Loan amount | $272,000 |
|---|---|
| Principal and interest | $1,764.19 / mo |
| Property tax ($2,100 / yr) | $175.00 / mo |
| Insurance ($1,600 / yr) | $133.33 / mo |
| Total payment | $2,072.52 / mo |
| Total interest over 30 years | $363,107 |
Now put $200 a month of extra principal against it. The loan retires in 22 years and 6 months instead of 30, and you keep $106,575 of interest that would have gone to the bank. That single field is worth more than shopping a quarter point off the rate, and it costs you nothing to turn on or off.
Questions investors ask
What is included in PITI?
Principal, interest, taxes, and insurance. Lenders qualify you on that combined number, not on principal and interest alone, and they add PMI and HOA dues to it when they apply. This calculator shows all of it in the Total monthly payment box.
How much does one discount point actually save?
One point costs one percent of the loan and typically buys the rate down by roughly an eighth to a quarter of a point, though the exchange rate varies by lender and by day. Run the payment both ways here, divide the upfront cost by the monthly savings, and you get the break-even in months. If you plan to sell or refinance before that month, do not buy the points.
Does the calculator handle investment property loans?
Yes. Set the down payment to 20 or 25 percent and use your quoted investor rate, which usually runs a half point to a full point above owner-occupied. Then take the payment over to the rental cash flow calculator or the DSCR calculator to see whether the rent supports it.
When does PMI come off?
On a conventional loan, you can request cancellation once the balance reaches 80 percent of the original purchase price, and the servicer must drop it automatically at 78 percent. The note under the results tells you which year that happens at your payment. FHA mortgage insurance works differently and often lasts the life of the loan.
Why is my lender's payment higher than this?
Almost always escrow. Lenders collect a cushion, and their tax figure is the reassessed value after your purchase, not the prior owner’s. Check the property’s current appraised value on the parcel map and re-run it with a realistic tax number.
Related calculators
Screening a real property? Pull its appraised value, assessed value, acreage, land use, and last recorded sale off the JB PARCEL parcel map and drop the real numbers into this calculator instead of guessing. Coverage runs across every county we carry.