Mortgage Calculator

Estimate your monthly mortgage payment with PITI — principal, interest, property tax and homeowners insurance — plus HOA dues and PMI, with a year-by-year amortization schedule.

What goes into a monthly mortgage payment

Most US home loans are paid monthly, and that single payment usually covers more than the loan itself. Lenders call it PITI:

• Principal — the part that pays down the amount you borrowed.
• Interest — the lender's charge for the loan, calculated on the balance you still owe.
• Taxes — your annual property tax, split into 12 monthly pieces and held in escrow.
• Insurance — your homeowners insurance premium, also usually paid through escrow.

On top of PITI, many buyers also pay HOA dues (for condos and planned communities) and PMI (private mortgage insurance) when the down payment is under 20%.

The mortgage payment formula

The principal-and-interest part uses the standard amortization formula:

M = P × r × (1 + r)ⁿ ÷ ((1 + r)ⁿ − 1)

Here P is the loan amount (home price minus down payment), r is the monthly interest rate (annual rate ÷ 12 ÷ 100), and n is the number of monthly payments (years × 12).

Worked example

A $400,000 home with 20% down ($80,000) leaves a $320,000 loan. At 6.5% for 30 years:

• Principal & interest: $2,022.62 per month
• Property tax at 1.1% of the price: $4,400 a year, or $366.67 per month
• Homeowners insurance at $1,500 a year: $125.00 per month
• No PMI, because the down payment is 20%

That adds up to about $2,514.28 a month. Over 30 years, the interest alone comes to roughly $408,142 — more than the original loan.

15-year vs. 30-year

Using the same $320,000 loan at the same 6.5% rate, a 15-year term raises the principal-and-interest payment to about $2,787.54 a month, but cuts total interest to roughly $181,758 — saving more than $226,000 over the life of the loan. In practice, 15-year loans often come with lower rates too, which widens the gap further.

How PMI works

If you put down less than 20% on a conventional loan, the lender usually adds private mortgage insurance. It's typically quoted as a yearly percentage of the loan amount. For example, 0.5% a year on a $360,000 loan is $150 a month. This calculator only adds PMI when your down payment is under 20%, and PMI normally ends once you build enough equity.

Frequently asked questions

What does PITI stand for?

Principal, Interest, Taxes and Insurance — the four parts of a typical monthly house payment. Principal and interest repay the loan; property tax and homeowners insurance are usually collected by the lender and held in an escrow account.

When do I have to pay PMI?

Private mortgage insurance is usually required on a conventional loan when your down payment is less than 20% of the home price. It typically drops off once you reach 20–22% equity. FHA and other loan types have their own mortgage insurance rules.

Is a 15-year or 30-year mortgage better?

A 15-year loan has a higher monthly payment but costs far less interest overall and usually comes with a lower rate. A 30-year loan keeps the monthly payment lower, leaving more room in your budget. The comparison above shows how big the interest difference can be.

Why is my actual payment different from this estimate?

Lenders use your exact property tax bill, insurance quote, PMI rate and closing details. Property taxes and insurance also change over time, so the escrow part of a payment can rise even on a fixed-rate loan. Use this as a planning estimate, then confirm with a Loan Estimate from your lender.

Does this include closing costs?

No. Closing costs (typically paid once, at purchase) are separate from the monthly payment. This calculator covers the recurring monthly cost of owning the home.

This is an estimate for planning, not a loan offer. Your lender's Loan Estimate will show your exact rate, taxes, insurance and fees.