Mortgage Calculator
Calculate your monthly mortgage payment including principal, interest, property taxes, PMI, and insurance. View a full amortization schedule.
Total Monthly Payment
PITI
Amortization Schedule
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Understanding your mortgage payment.
Your total monthly mortgage payment (PITI) consists of Principal & Interest (the amortized loan repayment), Property Tax (typically 1–2% of the home value per year), Homeowner's Insurance (mandatory coverage), and PMI (required when down payment is less than 20%). As you build equity, the balance between principal and interest shifts — early payments are mostly interest, while later payments chip away at the principal.
The Complete Guide to Mortgage Payments
Buying a home is likely the largest financial decision you'll ever make. A Mortgage Calculator helps you understand your total monthly payment obligation — including principal, interest, property taxes, homeowner's insurance, and PMI — before you commit to a purchase. By adjusting the home price, down payment, interest rate, and loan term, you can model different scenarios and find a payment that fits your budget.
How Is a Mortgage Payment Calculated?
The principal and interest component of your mortgage payment is calculated using the standard amortization formula: M = P[r(1+r)^n]/[(1+r)^n-1], where P is the loan principal (home price minus down payment), r is the monthly interest rate (annual rate ÷ 12), and n is the total number of months. Your actual PITI payment adds property taxes and insurance on top of this.
How Does a Down Payment Affect My Mortgage?
A larger down payment reduces your loan principal, which directly lowers your monthly P&I payment and total interest paid. Critically, putting down at least 20% allows you to avoid PMI, potentially saving hundreds of dollars per month. However, you should weigh this against keeping cash for an emergency fund and other needs.
15-Year vs 30-Year Mortgage
A 30-year mortgage is the most popular choice because it minimizes monthly payment obligations. However, a 15-year mortgage typically offers a lower interest rate and results in dramatically less total interest paid — often saving tens of thousands of dollars. Use this calculator to compare both scenarios and decide which term aligns with your long-term financial goals.
Frequently Asked Questions
A mortgage is a type of loan used to purchase or maintain a home, land, or other types of real estate. The borrower agrees to pay the lender over time, typically in a series of regular payments that are divided into principal and interest. The property then serves as collateral to secure the loan.
PITI stands for Principal, Interest, Taxes, and Insurance. These are the four components that typically make up your total monthly mortgage payment. Principal is the amount you borrowed, Interest is the lender's fee, Taxes refers to property taxes, and Insurance includes both homeowner's insurance and PMI (Private Mortgage Insurance) if your down payment is less than 20%.
PMI is insurance that protects the lender if you default on your loan. It is typically required when your down payment is less than 20% of the home's purchase price. PMI usually costs between 0.5% and 1.5% of the loan amount per year, and it can be cancelled once you reach 20% equity in your home.
A "good" mortgage rate depends on current market conditions, your credit score, loan type, down payment, and loan term. Generally, borrowers with excellent credit scores (760+) qualify for the lowest rates. You can improve your rate by making a larger down payment, shortening your loan term, or shopping multiple lenders.
A 15-year mortgage has higher monthly payments but a lower interest rate and you pay significantly less total interest over the life of the loan. A 30-year mortgage has lower monthly payments but a higher rate, and you pay more total interest. The 30-year is more popular because of its lower payment, while the 15-year builds equity faster.