Mortgage Calculator
Estimate your full monthly mortgage payment — principal, interest, taxes, insurance and PMI.
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How Your Mortgage Payment Is Calculated
A monthly mortgage payment has up to five parts, often called PITI plus PMI and HOA:
- Principal & Interest (P&I) — the loan repayment, using the amortization formula
- Property Tax — annual tax ÷ 12
- Home Insurance — annual premium ÷ 12
- PMI — private mortgage insurance, charged while your down payment is under 20%
- HOA — homeowners association dues, if any
Payment Formula
P&I = L × r(1+r)ⁿ ÷ ((1+r)ⁿ − 1), where L is the loan amount, r the monthly interest rate (annual ÷ 12), and n the number of monthly payments.
Example
A $400,000 home with 20% down ($80,000) at 6.5% for 30 years:
- Loan amount = $320,000
- Monthly P&I ≈ $2,022
- Total interest over 30 years ≈ $408,000
Tip: The 20% Down Rule
Putting 20% down lets you avoid PMI, which can add $100–$300 to a typical monthly payment. If you put less down, budget for PMI until you reach 20% equity.
Frequently Asked Questions
It combines principal and interest (from the amortization formula), plus monthly property tax, home insurance, PMI (if your down payment is under 20%) and any HOA dues.
PITI stands for Principal, Interest, Taxes and Insurance — the four core parts of most mortgage payments. Lenders use it to judge affordability.
A larger down payment, a lower interest rate, or a longer term all reduce the monthly payment. Putting 20% down also removes PMI. A longer term lowers the payment but increases total interest.
PMI typically drops off automatically once you reach 22% equity, or you can request removal at 20%. This calculator applies PMI while the down payment is under 20%.
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