Mortgage Payment Calculator
Estimate your monthly mortgage payment including principal, interest, property taxes, and homeowners insurance (PITI). All calculations use the standard U.S. mortgage amortization formula. Reviewed for clarity and functionality. This tool has not been reviewed by a licensed financial professional.
Your Estimated Monthly Payment
| Loan Amount | |
|---|---|
| Down Payment | |
| Total Interest Paid | |
| Total Cost of Loan | |
| Payoff Date |
How the Mortgage Calculator Works
The monthly principal and interest payment uses the standard amortization formula: M = P × [r(1+r)^n] ÷ [(1+r)^n − 1] where M = monthly payment, P = loan principal, r = monthly interest rate (annual rate ÷ 12), and n = total number of payments (term in years × 12).
Property tax and home insurance are added to calculate the total monthly PITI (Principal, Interest, Taxes, Insurance) payment.
Worked Example
A $400,000 home with 20% down ($80,000) leaves a $320,000 loan. At 6.5% for 30 years, monthly principal and interest is approximately $2,022.62. Adding property tax ($333.33/month) and insurance ($125.00/month) brings the total PITI to approximately $2,480.95 per month. Over the life of the loan, you would pay approximately $408,142.36 in interest.
Frequently Asked Questions
What is PITI?
PITI stands for Principal, Interest, Taxes, and Insurance — the four components of most monthly mortgage payments. Lenders use PITI to calculate your total housing expense when determining how much you can borrow.
How much down payment do I need?
Conventional loans typically require at least 3-5% down. Putting 20% down allows you to avoid Private Mortgage Insurance (PMI). FHA loans may require as little as 3.5% down. This calculator does not include PMI — if your down payment is under 20%, budget an additional 0.5%-1.5% of the loan amount per year.
Where can I verify current mortgage rates?
Current national average mortgage rates are published weekly by Freddie Mac (Primary Mortgage Market Survey) and the CFPB. This tool uses illustrative rates — check with lenders for your actual rate.