Estimate your true monthly payment — including principal, interest, taxes, insurance (PITI), PMI, and HOA fees.
Loan Details
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Optional Costs
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Applies if down payment < 20%
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Monthly Payment
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Total Interest
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Total Cost
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Amortization Schedule
Enter a home price, down payment, interest rate, and term to view your payment breakdown.
Payment #
Payment
Principal
Interest
Extra Principal
Balance
Taxes, insurance, HOA fees, and PMI are included in the monthly payment above but not broken out in this table.
About the Mortgage Calculator
The Mortgage Calculator estimates your true monthly housing cost including principal, interest, property taxes, homeowners insurance, PMI, and HOA fees (PITI). Understanding the full payment — not just principal and interest — is essential for accurate homebuying budgets.
Formula Used
M = P × (r × (1 + r)ⁿ) / ((1 + r)ⁿ – 1)
Where: M = Monthly principal & interest payment P = Loan amount (home price − down payment) r = Monthly interest rate (annual rate ÷ 12 ÷ 100) n = Total number of payments (years × 12)
What Each Component Means
Principal — The portion of each payment that reduces your loan balance and builds equity.
Interest — The lender's fee for lending you money. Early payments are mostly interest; later payments shift toward principal.
Property Taxes — Assessed by your local government, typically 0.5%–2.5% of home value annually, added monthly to your escrow account.
Homeowners Insurance — Required by lenders, typically $800–$2,000/year depending on location and home value.
PMI — Required when down payment is under 20%. Costs 0.5%–1.5% of the loan annually, added monthly until you reach 20% equity.
HOA Fees — Monthly fees charged by homeowner associations for community maintenance and amenities.
Worked Example
$400,000 home | 20% down ($80,000) | 6.5% rate | 30-year term | 1.2% taxes | $1,200/yr insurance:
The 15-year costs $680 more per month but saves over $241,000 in interest on a $320,000 loan.
Affordability: The 28% Rule
Most financial advisors suggest keeping your total housing payment (PITI) below 28% of gross monthly income. At $7,000/month income, that's a $1,960 housing budget. For total debt (mortgage + car + student loans), keep it under 43% of gross income. For simpler fixed-rate loans without PITI, use the Loan Calculator, or see how compounding affects long-term debt with the Compound Interest Calculator.
Frequently Asked Questions
What is included in a mortgage payment?
A full mortgage payment — called PITI — includes: Principal (reduces your loan balance), Interest (cost of borrowing), Taxes (property taxes estimated annually, divided monthly), and Insurance (homeowners insurance). PMI (Private Mortgage Insurance) is added if your down payment is under 20%, and HOA fees apply if your community charges them. This calculator includes all five components.
What's the 28% rule for mortgage affordability?
A widely-used guideline is that your total housing payment (PITI) should not exceed 28% of your gross monthly income. So if you earn $7,000/month, your mortgage payment ideally stays under $1,960. Lenders also look at total debt-to-income (DTI) — all monthly debts vs. income — which should typically be 43% or less.
Should I choose a 15-year or 30-year mortgage?
On a $400,000 loan at 6.5%: a 30-year mortgage has a ~$2,528/month payment but costs ~$510,000 in total interest. A 15-year mortgage has a ~$3,488/month payment but costs only ~$227,000 in interest — saving over $283,000. Choose 15-year if you can afford the payment; choose 30-year if cash flow flexibility matters more, and make extra payments when possible.
When can I stop paying PMI?
PMI is automatically canceled by law (Homeowners Protection Act) when your loan balance reaches 80% of the original home value — which happens through payments and any appreciation. You can also request early cancellation once you reach 80% LTV, or refinance when you have 20%+ equity. PMI typically costs 0.5%–1.5% of the loan annually, so removing it saves meaningfully.
How much down payment do I need to buy a house?
Conventional loans require as little as 3% down (for first-time buyers) or 5%, but anything under 20% triggers PMI. FHA loans require 3.5% down with a 580+ credit score. VA and USDA loans offer 0% down for qualifying borrowers. A 20% down payment eliminates PMI and reduces your monthly payment and total interest significantly.
How does my credit score affect my mortgage rate?
Credit score has a major impact on mortgage rates. A borrower with a 760+ score might qualify for 6.5% while a 650 score borrower might pay 7.5% or more on the same loan. That 1% difference on a $400,000 30-year mortgage adds up to roughly $90,000 in additional interest over the life of the loan. Before applying, check your credit and address any errors.
Does this calculator include taxes and insurance?
Yes. Enter your property tax rate (%), annual insurance premium, optional PMI rate, and monthly HOA fees to get a complete PITI estimate. If you only want the principal and interest estimate, leave the optional fields blank.
Is it cheaper to buy or rent a home?
The answer depends on your local market, down payment, and time horizon. Renting offers flexibility; buying builds equity. A useful rule: if you plan to stay 5+ years and your mortgage payment is within 25–30% of equivalent rent, buying often makes financial sense long-term. Use this calculator to estimate your true monthly ownership cost and compare it to renting in your area.