Skip to content

Mortgage Calculator

Calculate your complete monthly mortgage payment — including principal, interest, taxes, insurance, and PMI. See your PITI breakdown and full amortization schedule.

🏠 Mortgage Details
$
$
%
%
Optional — Taxes & Insurance
$
$
$

Understanding Your Mortgage Payment (PITI)

Most homebuyers focus only on the principal and interest portion of a mortgage, but your actual monthly payment includes four components known as PITI:

  • Principal (P): The portion of your payment that reduces your loan balance.
  • Interest (I): The cost of borrowing — calculated on your remaining balance each month.
  • Taxes (T): Annual property taxes divided by 12 and collected monthly by your lender into escrow.
  • Insurance (I): Annual homeowners insurance premium divided by 12, also held in escrow.

If your down payment is less than 20%, your lender will also require PMI (Private Mortgage Insurance) — typically 0.5%–1.5% of the loan amount annually. Our calculator automatically includes PMI when the LTV ratio exceeds 80%.

The Mortgage Payment Formula

M = P × r(1+r)^n / ((1+r)^n − 1)Where: M = Monthly principal + interest payment P = Loan amount (home price minus down payment) r = Monthly interest rate (annual rate ÷ 12 ÷ 100) n = Number of payments (term in years × 12)Total monthly = M + monthly_tax + monthly_insurance + PMI + HOA

Frequently Asked Questions

PITI stands for Principal, Interest, Taxes, and Insurance — the four components that make up your total monthly mortgage payment. Most lenders collect taxes and insurance monthly into an escrow account and pay them on your behalf when due.
PMI (Private Mortgage Insurance) is required when your down payment is less than 20% (LTV above 80%). It typically costs 0.5%–1.5% of the loan amount annually. PMI protects the lender if you default and can be cancelled once you reach 20% equity.
A common guideline is the 28/36 rule: your monthly PITI should not exceed 28% of your gross monthly income, and total debt payments should stay under 36%. Use our calculator to experiment with different home prices and down payments to find your comfortable range.
LTV (Loan-to-Value) ratio is the loan amount divided by the home's appraised value, expressed as a percentage. A 90% LTV means you borrowed 90% of the home's value. LTV above 80% typically triggers the PMI requirement.
A larger down payment reduces your loan amount (lowering monthly payments and total interest), eliminates PMI when you reach 20% down, and may qualify you for better interest rates. Even an extra 5% down on a $300,000 home saves thousands over the loan life.
A 30-year mortgage has lower monthly payments but significantly higher total interest cost. A 15-year mortgage has higher monthly payments but roughly half the total interest and much faster equity building. Use our calculator to compare both — just change the term button and recalculate.