Mortgage Payment Calculator
Calculate your full monthly mortgage payment including principal, interest, property tax, and home insurance (PITI). Use it to see the true cost of owning a home, not just the loan.
Last updated: May 2026
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About this calculator
This calculator returns the complete monthly housing payment lenders call PITI — Principal, Interest, Taxes, and Insurance. The principal-and-interest portion uses the standard amortizing-loan formula: M = L × (c × (1 + c)^k) / ((1 + c)^k − 1), where L is the Loan Amount, c is the monthly interest rate (annual rate ÷ 12 ÷ 100), and k is the total number of payments (loan term in years × 12). To that it adds one-twelfth of the annual Property Tax and one-twelfth of the annual Home Insurance, since those are typically collected monthly through an escrow account. The result is what actually leaves your bank account each month. The interest rate and term dominate the payment: a longer term lowers the monthly figure but increases total interest paid, while even a small rate change moves the payment noticeably because interest compounds over hundreds of payments. Edge cases: a 0% rate would make the formula reduce to L ÷ k, and very short terms sharply raise the monthly payment. Note that this figure excludes private mortgage insurance (PMI), HOA dues, and maintenance, all of which add to the true cost of ownership. Lenders also qualify you on this PITI figure relative to your income, so it is the number that determines how much house you can afford, not the bare principal-and-interest payment.
How to use
Example 1 — a $300,000 loan at 6.5% over 30 years with $3,600 tax and $1,200 insurance a year. Enter Loan Amount = 300000, Interest Rate = 6.5, Term = 30 years, Property Tax = 3600, Home Insurance = 1200. Principal and interest come to about $1,896.20, plus $300 tax and $100 insurance monthly, for a total PITI of $2,296.20. Verify: the escrow add-ons ($400) are simply the annual amounts divided by 12. Example 2 — a $400,000 loan at 7% over 15 years with $5,000 tax and $1,500 insurance. Enter 400000, 7, 15 years, 5000, 1500. The total payment is $4,136.98. Verify: the shorter 15-year term makes the principal-and-interest portion much larger than a 30-year loan would, even though you pay far less total interest over the life of the loan.
Frequently asked questions
What does PITI stand for and why does it matter?
PITI stands for Principal, Interest, Taxes, and Insurance — the four components that make up a typical escrowed mortgage payment. Many borrowers focus only on principal and interest and are surprised when their actual payment is hundreds of dollars higher because of property taxes and homeowners insurance. Lenders qualify you based on PITI, not just the loan payment, because it reflects your real monthly obligation. Budgeting on PITI prevents the common mistake of buying a home that looks affordable on the loan payment alone but is not once taxes and insurance are included. Always compare homes using the full PITI figure.
How does the loan term affect my payment and total cost?
A longer term spreads the loan over more payments, lowering each monthly payment but increasing the total interest you pay over the life of the loan. A 30-year mortgage has a much smaller monthly payment than a 15-year one, but you can pay tens or even hundreds of thousands more in interest. A 15-year loan costs more each month but builds equity faster and saves enormously on interest. The right choice depends on your cash flow and goals: lower monthly burden versus lower lifetime cost. Running both terms through the calculator makes the trade-off concrete.
Why isn't PMI or HOA included in this calculator?
This tool covers the four standard PITI components, but several other costs can apply depending on your situation. Private mortgage insurance (PMI) is usually required when your down payment is under 20%, and it can add $100–$300 or more per month until you reach enough equity. Homeowners association (HOA) dues apply to many condos and planned communities and are not part of the mortgage at all. Maintenance, utilities, and repairs add further to the true cost of ownership. Add these separately to the PITI figure to estimate your real monthly housing budget.
Does a small change in interest rate really matter?
Yes, far more than most buyers expect, because the rate is applied to a large balance over hundreds of payments. On a $300,000 30-year loan, moving from 6.5% to 7.5% raises the monthly payment by roughly $200 and adds tens of thousands in total interest. This is why shopping multiple lenders and improving your credit score before applying can save you a great deal of money. Even a quarter-point difference is meaningful over 30 years. Always compare offers on the same loan amount and term to see the true effect of the rate.
When should I NOT rely on this estimate?
Avoid treating it as your final payment if your down payment is under 20%, because it excludes PMI, which can add a significant monthly cost. It also omits HOA dues, flood or other specialty insurance, and any rate that is variable rather than fixed — adjustable-rate mortgages change over time and need a different model. The tax and insurance figures are estimates; your actual escrow can be reassessed annually and change. And it does not capture closing costs or the opportunity cost of your down payment. Use it to compare homes and loan scenarios, but confirm the exact figures with a lender's official Loan Estimate before committing.