Mortgage Calculator
Estimate monthly mortgage payments with taxes and insurance
Monthly Payment (PITI)
$2,161.46
Principal & Interest
$1,770
Property Tax
$292
Insurance
$100
Total Interest Paid
$357,125
Amount Financed
$280,000
Visualization
Loan Balance Over Time
- Remaining Balance
- Principal Paid
Original Loan
$280,000
Total Interest
$357,125
Total Paid
$637,125
Results are estimates and may vary based on lender terms and fees.
Results are estimates for informational purposes only and do not constitute financial advice. Actual results may vary based on lender terms, fees, and other factors.
Mortgage Calculator Formula
This formula calculates the monthly principal and interest (P&I) payment. P is the loan amount (home price minus down payment), r is the monthly interest rate, and n is the total number of monthly payments. The full PITI payment adds monthly property tax and insurance costs.
How the Mortgage Calculator Works
- 1Enter the home purchase price you're considering
- 2Specify your down payment amount or percentage
- 3Input the mortgage interest rate (current 30-year rates are typically 6-7%)
- 4Select the loan term (15 or 30 years are most common)
- 5Add annual property tax and homeowners insurance estimates
- 6View your complete monthly PITI payment breakdown
Mortgage Calculator Key Terms
- PITI
- Principal, Interest, Taxes, and Insurance—the four components that make up your total monthly mortgage payment.
- Down Payment
- The upfront cash payment you make toward the home purchase. Higher down payments reduce the loan amount and may eliminate PMI.
- PMI
- Private Mortgage Insurance, required when down payment is less than 20%. Protects the lender if you default.
- Escrow
- An account managed by your lender that holds funds for property taxes and insurance, paid from your monthly payment.
Mortgage Calculator Tips
- •A 20% down payment eliminates PMI, saving $100-300+ per month on typical loans
- •15-year mortgages have higher payments but save over 50% in total interest versus 30-year terms
- •Property taxes vary significantly by location—research local rates before budgeting
- •Get pre-approved to understand your actual borrowing power before house hunting
- •Budget for closing costs (typically 2-5% of loan amount) in addition to down payment
When to Use This Mortgage Calculator
- ✓Estimating monthly housing costs before buying a home
- ✓Comparing different home prices and their affordability
- ✓Evaluating the impact of different down payment amounts
- ✓Understanding how rate changes affect your payment
- ✓Planning your housing budget with taxes and insurance included
Mortgage Calculator Examples
First-Time Buyer Example
A $300,000 home with 10% down at 6.5% results in $1,706 monthly for principal and interest. Add taxes and insurance for total PITI.
20% Down Payment Example
Putting 20% down on a $400,000 home at 6% means $1,919 monthly P&I and no PMI requirement.
15-Year Mortgage Example
A 15-year mortgage has higher payments ($2,480) but saves over $150,000 in interest compared to a 30-year term.
Understanding Mortgage in Depth
Buying a home is typically the largest financial decision most people make. Understanding your true monthly housing cost—not just the principal and interest—is critical for sustainable homeownership and financial health.
Components of Your Mortgage Payment
Principal: The portion of your payment that reduces your loan balance and builds equity. Early in the loan, this is the smaller portion of your payment.
Interest: The cost of borrowing, calculated on your remaining balance. This is the larger portion of early payments.
Property Taxes: Local taxes based on your home's assessed value, typically 0.5-2.5% of home value annually.
Insurance: Homeowners insurance protecting against damage and liability, plus flood insurance if required.
The Down Payment Decision
While 20% down is traditional, many buyers put down less. FHA loans allow 3.5% down, and some conventional loans accept 3%. However, lower down payments mean larger loans, higher monthly payments, and PMI costs. Calculate your scenarios to find the right balance.
Choosing Your Loan Term
A 30-year mortgage is most popular because it offers the lowest monthly payment. However, a 15-year mortgage typically has lower interest rates (0.25-0.5% less) and builds equity twice as fast. On a $300,000 loan, the difference in total interest can exceed $150,000.
Hidden Costs of Homeownership
Beyond PITI, budget for maintenance (1-2% of home value annually), utilities, HOA fees if applicable, and periodic major repairs like roof replacement or HVAC systems. A comfortable mortgage payment leaves room for these expenses.
Mortgage Calculator FAQs
Browse more tools in Loan Calculators
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Marcus Chen
Financial Analysis SpecialistMarcus has over 12 years of experience in quantitative finance and personal financial planning. He specializes in loan analysis, investment modeling, and consumer debt strategies. His methodologies incorporate industry-standard financial mathematics used by major lending institutions.
Editorial Standards: All calculations use industry-standard financial formulas. Content is reviewed for mathematical accuracy and updated to reflect current market conditions. This tool provides estimates for informational purposes and does not constitute financial advice.