Mortgage Payment Calculator
Estimate the full monthly cost of owning a home, not just principal and interest. Enter the home price, down payment, interest rate, loan term, property tax rate and annual home insurance to see your total monthly payment (PITI) and how much interest you will pay over the life of the loan.
How this calculation works
The loan amount is the home price minus the down payment. That amount is repaid with fixed monthly payments using the standard amortization formula: Payment = L × r ÷ (1 − (1 + r)⁻ⁿ), where L is the loan amount, r is the monthly interest rate (annual rate ÷ 12 ÷ 100), and n is the number of monthly payments (years × 12).
Property tax is estimated by applying the annual tax rate to the home price and dividing by 12; home insurance is simply the annual premium divided by 12. Adding these two to the principal-and-interest payment gives PITI — the realistic monthly cost of the mortgage.
Total interest is the sum of every interest-only portion of every payment over the full term: total payments made toward principal and interest, minus the original loan amount.
Worked example
What makes up your PITI payment
PITI breaks your mortgage payment into the four pieces lenders typically collect together each month:
| Component | What it covers | How it's calculated here |
|---|---|---|
| Principal & Interest | Repays the loan itself plus the lender's interest charge | Standard amortization over the loan term |
| Property Tax | Local government tax on the home, billed annually | Home price × tax rate ÷ 12 |
| Home Insurance | Protects the home against fire, storm and other damage | Annual premium ÷ 12 |
| PMI (not included) | Protects the lender when down payment is below 20% | Add separately if it applies to you |
Why the sticker payment isn't the real cost
Ads and listings often quote only the principal-and-interest figure because it's the smallest, most flattering number. In reality, most lenders roll property tax and homeowners insurance into your monthly payment through an escrow account, collecting a twelfth of each annual bill every month and paying them on your behalf when due.
That means the payment you actually owe each month is closer to PITI than to principal-and-interest alone. Budgeting off the smaller number is a common reason new buyers feel surprised by their first mortgage statement.
Down payment size and PMI
The size of your down payment affects more than just the loan amount. Below a 20% down payment, most conventional lenders require private mortgage insurance (PMI), an extra monthly cost that protects the lender — not you — in case of default. PMI is not included in this calculator's PITI total, so budget for it separately if your down payment is under 20% of the home price.
Reaching 20% equity, either through a larger down payment or paying down the loan over time, is usually the trigger to have PMI removed, which lowers the real monthly payment even though the loan terms stay the same.
Ways to lower your monthly payment
- Increase the down payment to shrink the loan amount and, if it crosses 20%, avoid PMI entirely.
- Shop for a lower interest rate — even a 0.5% difference changes the monthly payment meaningfully on a large loan.
- Choose a longer term to spread principal and interest over more months, accepting more total interest in exchange for a lower monthly bill.
- Compare property tax rates and insurance quotes between homes or providers, since both vary and add directly to the monthly total.
- Make extra principal payments when possible to shrink the balance interest is charged on, cutting total interest paid over the term.