Include taxes, insurance, and HOA to estimate your full monthly housing payment.
Total Monthly Payment (PITI)
$2,362.85
Principal + interest + taxes + insurance
Principal & Interest
$1,862.85
Monthly Property Tax
$350.00
Monthly Insurance
$150.00
Loan Amount
$280,000.00
Total Interest Paid
$390,624.92
Total Cost (PITI x 360 months)
$850,624.92
See how extra payments accelerate payoff → Loan Payoff Calculator
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A mortgage calculator helps you estimate the true monthly cost of owning a home. Most buyers focus on the purchase price, but your actual monthly obligation includes several components that lenders evaluate together. Understanding each piece lets you budget accurately and compare loan scenarios before committing.
Lenders use PITI — principal, interest, taxes, and insurance — to assess affordability. Principal is the portion that reduces your loan balance each month. Interest is the cost your lender charges for borrowing. Property taxes and homeowners insurance are typically collected into an escrow account and paid on your behalf. Some properties also include HOA fees, which can add hundreds to your monthly cost for condos and planned communities.
P&I payment formula
M = P[r(1+r)^n] / [(1+r)^n - 1]
P is the loan amount (home price minus down payment), r is the monthly interest rate (annual rate divided by 12), and n is the total number of monthly payments. At 0% APR, the payment simplifies to loan amount divided by term months.
A larger down payment reduces your loan amount, which directly lowers both your monthly payment and total interest paid over the life of the loan. Putting down at least 20% typically eliminates the need for private mortgage insurance (PMI), an additional monthly cost that protects the lender if you default. PMI can add $50 to $300 or more per month depending on loan size and credit profile.
A 30-year mortgage offers lower monthly payments, making homeownership more accessible. A 15-year mortgage comes with higher monthly payments but dramatically reduces total interest — often saving tens of thousands of dollars. Many buyers start with a 30-year term and make extra payments when cash flow allows, combining flexibility with interest savings.
Property tax rates vary significantly by location, typically ranging from 0.5% to 2.5% of assessed home value annually. Always verify your county's rate for a more accurate estimate. Homeowners insurance costs depend on coverage level, location, and home characteristics.
This calculator provides estimates for educational and planning purposes. Actual obligations can vary by lender, escrow policy, local tax assessments, and insurance underwriting. Consult a mortgage professional for binding quotes.
Common questions about mortgage payments, PITI, and homebuying tradeoffs.
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This calculator is for educational purposes only and does not constitute financial advice. Results are estimates based on the inputs provided. Consult a qualified mortgage professional for personalized advice.