Estimate principal, interest, taxes, insurance, PMI, monthly escrow, and a two-month escrow-cushion reference.
The Mortgage Payment and Escrow Calculator validates every input, normalizes monthly and annual amounts, and calculates principal, interest, property tax, insurance, PMI, and escrow from one consistent scenario.
Loan P = price × (1 − down-payment fraction). For monthly rate r and n payments, principal-and-interest M = P × r / (1 − (1 + r)^−n). Total monthly outlay = M + price × annual tax rate / 12 + annual insurance / 12 + monthly PMI. Escrow here is taxes plus insurance.
A $400,000 home with 20% down creates a $320,000 loan. At 6.5% for 30 years, P&I is about $2,022.62. A 1.2% property tax and $1,800 annual insurance add $400 and $150 a month; with no PMI the total is about $2,572.62.
Content and calculation reviewed:
Understand the calculation
A fixed-payment loan is an annuity: the discounted value of all future payments equals the amount borrowed today. Summing that geometric series gives the monthly-payment equation. Match the rate and time unit: monthly payments use an annual nominal rate divided by twelve and a term counted in months.
P = Σ[t=1…n] M/(1+r)^t M = Pr / (1 − (1+r)^−n) Iₜ = Bₜ₋₁r; Bₜ = Bₜ₋₁ + Iₜ − paymentₜ
The detailed guide adds variable definitions, a reproducible example, a practice question and model limitations.