Mortgage Calculator
Calculate your monthly PITI payment including taxes, insurance, and PMI.
Loan Details
Home Price
$
Down Payment
$
Interest Rate (Annual)
%
Loan Term
▼
Property Tax Rate (Annual)
%
Homeowner’s Insurance (Annual)
$/yr
PMI Rate (Annual) — applies if down payment < 20%
%
Payment Summary
$0
Monthly P&I Payment
Loan Amount
$0
Total Interest
$0
Total Cost
$0
Payoff Date
–
Principal vs Interest
0%
P&I
Principal $0
Interest $0
Balance Over Time
Year 0
Year 15
Year 30
How Mortgage Payments Work
Your monthly mortgage payment is calculated using the loan amount, interest rate, and loan term. The standard formula for a fixed-rate mortgage is:
M = P × [r(1+r)ⁿ] / [(1+r)ⁿ – 1]
Where M = monthly payment, P = principal loan amount, r = monthly interest rate, and n = total number of payments.
Understanding PITI
PITI stands for Principal, Interest, Taxes, and Insurance — the four components of a typical monthly mortgage payment. Lenders use PITI to determine affordability.
Principal & Interest: The core loan repayment. Property Tax: Typically 0.5–2.5% of home value annually. Insurance: Protects against damage. PMI: Required when your down payment is less than 20%; typically 0.3–1.5% of the loan amount per year.
Tips to Save on Your Mortgage
- Make extra payments: Even $100/month extra can save thousands in interest and shorten your loan by years.
- Consider a 15-year term: Higher monthly payments, but significantly less total interest paid.
- Shop around: A 0.25% rate difference can save $15,000+ over 30 years on a $300k loan.
- Reach 20% equity to drop PMI: PMI typically costs $50–$200+/month. Once you reach 20% equity (78% LTV by law), PMI is removed automatically.
Important Considerations
- PITI vs P&I: Lenders often require your PITI to be no more than 28% of gross monthly income (the “front-end ratio”).
- Closing costs: Typically 2–5% of the loan amount, paid upfront.
- Rate type: This calculator assumes a fixed-rate mortgage. Adjustable-rate mortgages (ARMs) may start lower but can increase.
- HOA fees: Not included here, but condos and planned communities may add $200–$500+/month.