Mortgage Payment Calculator
Calculates your full monthly mortgage payment — principal, interest, property tax, and insurance — for any loan amount and term. Use it when comparing loan offers or budgeting for a new home purchase.
About this calculator
A fixed-rate monthly mortgage payment is determined by the loan amount, interest rate, and loan term using the standard amortisation formula: M = P × [r(1+r)ⁿ] / [(1+r)ⁿ − 1], where P is the loan principal, r is the monthly interest rate (annual rate ÷ 12), and n is the total number of payments (years × 12). This gives the principal-and-interest (P&I) portion. To get the full PITI payment, annual property tax and annual insurance are each divided by 12 and added: Total Payment = M + (propertyTax / 12) + (insurance / 12). The PITI figure is what lenders use to assess affordability against your gross income. Even small changes in interest rate have a large effect on total interest paid over a 30-year term.
How to use
Loan amount: $320,000; Interest rate: 6.5% annually; Loan term: 30 years; Property tax: $3,600/year; Insurance: $1,200/year. Step 1 — Monthly rate r = 0.065 / 12 = 0.005417. Step 2 — n = 30 × 12 = 360 payments. Step 3 — P&I = $320,000 × [0.005417 × (1.005417)³⁶⁰] / [(1.005417)³⁶⁰ − 1] ≈ $2,023. Step 4 — Tax: $3,600 / 12 = $300. Step 5 — Insurance: $1,200 / 12 = $100. Step 6 — Total PITI payment = $2,023 + $300 + $100 = $2,423/month.
Frequently asked questions
How does interest rate affect my monthly mortgage payment?
Interest rate is one of the most powerful levers in your monthly payment. On a $300,000 30-year mortgage, a rate of 5% produces a P&I payment of about $1,610, while 7% raises it to roughly $1,996 — a difference of nearly $386/month or $139,000 over the life of the loan. Even a 0.5% difference in rate translates to tens of thousands of dollars in total interest. This is why locking in a lower rate — either by improving your credit score or choosing the right time to buy — can be more impactful than negotiating a lower purchase price.
What is included in a PITI mortgage payment?
PITI stands for Principal, Interest, Taxes, and Insurance — the four components that make up a full monthly housing payment. Principal reduces your loan balance; interest is the lender's charge for borrowing; property tax is collected monthly and held in escrow until the annual bill is due; and homeowner's insurance protects the property. Lenders require PITI to be below a certain percentage of your gross income (typically 28%) before approving a mortgage. Private mortgage insurance (PMI) is sometimes added as a fifth component if your down payment is below 20%.
What is the difference between a 15-year and 30-year mortgage payment?
A 15-year mortgage has a significantly higher monthly payment than a 30-year mortgage on the same loan amount, but the total interest paid is dramatically lower. For example, a $300,000 loan at 6.5% costs about $2,613/month over 15 years versus $1,896/month over 30 years — roughly $717 more per month. However, the 15-year borrower pays approximately $170,000 in total interest compared to $382,000 for the 30-year borrower, saving over $212,000. The right choice depends on your cash flow needs, investment alternatives for the monthly difference, and how long you plan to hold the property.