Mortgage Payment Calculator
Calculate your full monthly mortgage payment — principal, interest, property tax, and home insurance (PITI) — for any loan amount, term, and interest rate. Use it when comparing homes or locking in a loan.
About this calculator
A mortgage payment has two components: the loan payment and the escrow payment. The loan payment uses the standard amortization formula: M = L × r × (1 + r)^n / ((1 + r)^n − 1), where L is the loan amount, r = interestRate / 100 / 12 (monthly rate), and n = loanTerm × 12 (total months). This ensures the loan is fully paid off over the term in equal installments. The escrow portion adds propertyTax / 12 and insurance / 12 to the monthly payment, giving the total PITI (Principal, Interest, Taxes, Insurance). Total interest over the life of the loan = (M_loan × n) − L. Even a 0.5% difference in interest rate can shift total interest paid by tens of thousands of dollars on a 30-year mortgage.
How to use
Assume a $350,000 loan at 7% APR for 30 years, with $4,200/year in property tax and $1,200/year in insurance. Monthly rate r = 7 / 100 / 12 = 0.005833. n = 360 months. Loan payment M = 350,000 × 0.005833 × (1.005833)^360 / ((1.005833)^360 − 1) ≈ $2,328.56. Escrow = $4,200/12 + $1,200/12 = $350 + $100 = $450. Total monthly PITI = $2,328.56 + $450 = $2,778.56. Total interest over 30 years ≈ ($2,328.56 × 360) − $350,000 ≈ $488,282.
Frequently asked questions
What is included in a monthly mortgage payment and what does PITI mean?
PITI stands for Principal, Interest, Taxes, and Insurance — the four components that typically make up a full monthly mortgage payment. Principal reduces the outstanding loan balance, interest is the lender's charge for the loan, property taxes are collected monthly and held in escrow until due, and homeowner's insurance protects the property. If your down payment was less than 20%, you'll also pay Private Mortgage Insurance (PMI), which this calculator does not include. Understanding the full PITI payment is essential for accurately budgeting for homeownership.
How does a 15-year mortgage compare to a 30-year mortgage in total interest paid?
A 15-year mortgage typically carries a lower interest rate and cuts the repayment period in half, resulting in dramatically less total interest paid — often 50–60% less than a 30-year loan. For example, a $300,000 loan at 7% over 30 years costs roughly $418,000 in total interest, while the same loan at 6.5% over 15 years costs about $165,000 in interest. The trade-off is a significantly higher monthly payment on the 15-year term. The right choice depends on your cash flow flexibility and whether you could invest the payment difference to potentially earn a higher return.
How does my down payment affect my monthly mortgage payment and total cost?
A larger down payment directly reduces the loan principal, which lowers both the monthly payment and total interest paid over the life of the loan. It also helps you avoid PMI, which typically costs 0.5–1.5% of the loan amount annually and is required when your down payment is below 20%. For instance, on a $400,000 home, putting 20% down ($80,000) instead of 5% ($20,000) reduces the loan by $60,000, saving hundreds per month and potentially $100,000+ in interest over 30 years. However, depleting your savings for a larger down payment can be risky if it leaves no emergency fund.