Mortgage Payment Calculator
Calculate your exact monthly mortgage payment including principal, interest, property taxes, homeowners insurance, and private mortgage insurance (PMI).
Mortgage Inputs
Includes Principal, Interest, Taxes & Insurance (PITI).
Mortgage Principal & Interest Formula
M = P [ r(1 + r)^n ] / [ (1 + r)^n โ 1 ] + Monthly Taxes + Insurance + PMI + HOA- P (Principal): Total financed loan amount (Home Purchase Price minus Down Payment cash).
- r (Monthly Interest Rate): Annual interest rate divided by 12 (e.g. 6.5% / 12 = 0.005417).
- n (Number of Payments): Total monthly terms (e.g., 30 years ร 12 = 360 payments).
- Escrow (Taxes & Insurance): Monthly portion of annual property taxes and homeowners insurance policies.
- PMI: Private Mortgage Insurance typically required by lenders when down payment is under 20%.
Step-by-Step Worked Example
Calculation Steps:
- Financed Loan Amount = $400,000 โ $80,000 = $320,000
- Monthly Principal & Interest = $320,000 ร [ 0.005417 ร (1.005417)^360 ] / [ (1.005417)^360 โ 1 ] = $2,022.62/month
- Total Monthly Payment (PITI) = $2,022.62 (P&I) + $400.00 (Taxes) + $100.00 (Insurance) = $2,522.62/month
- Total Interest Paid over 30 Years = ($2,022.62 ร 360) โ $320,000 = $408,143.20
How to Use This Calculator
- 1Enter the home purchase price or expected offer price.
- 2Select your currency and set your down payment percentage or dollar amount.
- 3Input the current prevailing mortgage interest rate (% APR).
- 4Choose your loan term length (30-year or 15-year fixed).
- 5Review property tax rates and insurance estimates in the expandable details section.
Assumptions & Limitations
- Assumes a standard fixed-rate mortgage with level amortizing payments throughout the full loan term.
- PMI is estimated at approximately 0.85% per year of initial loan balance for down payments under 20%.
- Property taxes and insurance are assumed to be paid monthly via a lender escrow account.
Frequently Asked Questions
What is PITI in a mortgage payment?
PITI stands for Principal, Interest, Taxes, and Insurance. It represents the comprehensive monthly housing cost paid to your mortgage servicer.
How does down payment affect my monthly payment?
A larger down payment lowers your financed loan balance, which directly reduces your monthly principal and interest payment. Furthermore, putting down 20% or more eliminates the monthly PMI fee.
Should I choose a 15-year or 30-year mortgage?
A 30-year mortgage provides lower required monthly payments, improving cash flow. A 15-year mortgage has higher monthly payments but saves hundreds of thousands of dollars in lifetime interest and pays off the debt twice as fast.
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