Mortgage calculator
A mortgage payment is more than principal and interest. This calculator adds property taxes and homeowners insurance to give you the realistic "PITI" figure that actually leaves your bank account each month.
Excludes PMI, HOA dues, and any escrow shortfalls. See the disclaimer below.
How to use this calculator
Enter the home price and your down payment — the difference is the amount you'll actually borrow. Add the interest rate and term (30 years is the most common in the U.S., though 15-year loans carry lower rates and far less total interest). Finally, enter your annual property tax and homeowners insurance; lenders usually collect these monthly into an escrow account, so they belong in your true monthly cost.
What "PITI" means and how it's calculated
PITI stands for Principal, Interest, Taxes, and Insurance — the four parts of a typical mortgage payment. The principal-and-interest portion uses the same amortization formula as any fixed loan:
Here P is the loan amount (price minus down payment), r is the monthly rate (annual ÷ 12 ÷ 100), and n is the number of payments (years × 12). Taxes and insurance are simply the annual amounts divided by 12 and added on top. The calculator sums all four to show the figure that matters: what you pay every month.
A worked example
On a $350,000 home with $70,000 down, you borrow $280,000. At 6.5% over 30 years, the principal-and-interest payment is about $1,770. Add $4,200 in annual property tax ($350/month) and $1,500 in insurance ($125/month), and your true monthly cost is roughly $2,245 — about 27% more than the principal-and-interest figure alone. That gap is exactly why looking only at "principal and interest" leads buyers to overestimate what they can afford.
What this calculator leaves out
A few real-world costs aren't included here. If your down payment is under 20%, lenders typically charge private mortgage insurance (PMI) until you build enough equity. Condos and some neighborhoods carry HOA dues. And escrow accounts can run short when tax or insurance bills rise, nudging your payment up at the annual adjustment. Use this as a strong baseline, then ask your lender for a Loan Estimate, which itemizes every cost.
Frequently asked questions
Is a 15-year or 30-year mortgage better?
It's a trade-off. A 30-year loan has lower monthly payments but much higher total interest. A 15-year loan costs more each month but usually carries a lower rate and can save tens of thousands in interest over the life of the loan. Run both terms in the calculator to see the difference for your numbers.
How much should my down payment be?
Twenty percent is the classic target because it usually lets you avoid PMI, but many loans allow far less down. A larger down payment lowers your loan amount, your monthly payment, and your total interest — at the cost of tying up more cash upfront.
Why did my lender's number differ from this?
Lenders include items this tool doesn't model by default — PMI, HOA fees, points, or a slightly different rate after underwriting. The official Loan Estimate document itemizes everything; compare it line by line against this estimate.