Estimate your total monthly mortgage payment, including principal, interest, taxes, insurance (PITI), and PMI.
The total monthly payment (PITI) is the sum of Principal & Interest, Taxes, Insurance, and PMI.
Where P is the loan principal, i is the monthly interest rate, and N is the total number of payments.
For a $400,000 home with a 10% down payment ($40,000), the loan amount is $360,000. The calculator computes the monthly principal and interest payment. Because the down payment is less than 20%, it then adds the monthly cost of property taxes, homeowners insurance, and PMI to determine the total monthly payment.
The Mortgage Calculator is a comprehensive financial tool designed to provide potential homebuyers with a clear and accurate estimate of their monthly housing costs. Buying a home is one of the most significant financial decisions a person can make, and understanding the full cost is crucial. This calculator goes beyond simple principal and interest calculations to provide a PITI estimate: Principal, Interest, Taxes, and Insurance. It also intelligently incorporates Private Mortgage Insurance (PMI) for scenarios where the down payment is less than 20% of the home price. By aggregating these components, the Mortgage Calculator delivers a realistic monthly payment figure, empowering users to budget effectively and approach the homebuying process with confidence.
At its heart, the tool functions as a sophisticated amortization calculator, using the standard formula to determine the principal and interest (P&I) portion of the payment. This ensures the loan repayment aspect is calculated accurately based on the loan amount, interest rate, and term. However, a mortgage payment is rarely just P&I. Lenders typically require property taxes and homeowners insurance to be paid into an escrow account monthly, which they then manage on the borrower's behalf. Our Mortgage Calculator simplifies this by allowing users to input annual figures for these costs and automatically breaking them down into monthly installments, providing a true-to-life payment estimate.
A key feature of the Mortgage Calculator is its dynamic handling of Private Mortgage Insurance (PMI). PMI is a type of insurance that protects the lender if a borrower defaults on their loan and is usually required for conventional loans with a down payment of less than 20%. Our calculator automatically detects this condition based on the user's inputs and includes the estimated monthly PMI cost in the total payment, providing a more complete financial picture. For in-depth information on the homebuying process, government resources like the Consumer Financial Protection Bureau (CFPB) offer invaluable guidance. To understand the mechanics of mortgage loans further, Wikipedia's page on Mortgage Loans provides a detailed overview.
Ultimately, the Mortgage Calculator serves as an indispensable planning tool. It allows for quick scenario analysis—users can instantly see how a larger down payment, a shorter loan term, or a different home price affects their monthly obligation. This helps in setting a realistic budget, comparing different properties, and understanding the long-term financial implications of a home purchase. With user-friendly features like a session history and a copy-to-clipboard button, comparing different loan scenarios is seamless. By providing a transparent and detailed breakdown of all the costs involved, this tool empowers users to navigate the property market with greater clarity and financial prudence.
Explore all remaining calculators in this Financial category.
Explore specialized calculators for your industry and use case.
PITI stands for Principal, Interest, Taxes, and Insurance. These four components make up your total monthly mortgage payment. Principal and interest go to the lender to repay the loan, while taxes and insurance are typically held in an escrow account and paid on your behalf.
Private Mortgage Insurance (PMI) is insurance that protects the lender in case you default on your loan. It is usually required if your down payment on a conventional loan is less than 20% of the home's purchase price. Once you reach 20% equity, you can typically request to have it removed.
No, they are not. Property taxes can be reassessed by your local government and can go up or down. Homeowners insurance premiums can also change annually. This means your total monthly mortgage payment can change over time, even with a fixed-rate loan.
No, this calculator does not include Homeowners Association (HOA) fees. If you are buying a property in a community with an HOA, you must add that separate monthly fee to the PITI result to understand your total housing cost.