Mortgage Calculator
Estimate your monthly mortgage payment. Enter the home price, down payment, interest rate, and loan term. Add taxes, insurance, HOA, and PMI for a full monthly cost.
How the payment is calculated
M = P × r × (1 + r)n ÷ ((1 + r)n − 1)
Here P is the loan amount (home price minus down payment), r is the monthly interest rate (the annual rate divided by 12), and n is the number of monthly payments (the term in years times 12). This gives the monthly principal and interest. Property tax, homeowners insurance, PMI, and HOA dues are then added to get your total monthly payment, often called PITI.
Example
On a $400,000 home with $80,000 down (20%), a $320,000 loan at 6.5% over 30 years costs about $2,023 per month in principal and interest. Adding $400 a month in property tax and $150 in insurance brings the total to roughly $2,573 a month. Because the down payment is 20%, no PMI is required.
Frequently asked questions
How is a monthly mortgage payment calculated?
The principal and interest payment uses the formula M = P × r × (1 + r)^n ÷ ((1 + r)^n − 1), where P is the loan amount, r is the monthly interest rate (annual rate ÷ 12), and n is the number of monthly payments (years × 12). Property tax, homeowners insurance, PMI, and HOA dues are added on top.
What is PITI?
PITI stands for principal, interest, taxes, and insurance, the four parts of a typical monthly mortgage payment. Lenders look at your full PITI, not just principal and interest, when they decide how much you can borrow.
When do I have to pay PMI?
Private mortgage insurance is usually required on a conventional loan when your down payment is less than 20% of the home price. It protects the lender, not you, and can often be removed once you build 20% equity.
Does a bigger down payment lower my monthly payment?
Yes. A larger down payment means a smaller loan, which lowers both your principal and interest payment and the total interest you pay over the life of the loan. Reaching 20% down also lets you avoid PMI.