Mortgage Calculator
Free Online PITI Calculator
Calculate your full monthly payment — Principal, Interest, Taxes & Insurance — plus an amortization breakdown.
Total Monthly Payment
$2,522.62
Loan amount: $320,000
Loan Summary
These numbers are estimates based on the inputs you provided.
A licensed loan officer can give you an accurate quote based on your credit score, employment history, and lender-specific programs.
Share This Tool
How to Use This Mortgage Calculator
This calculator gives you a complete picture of what your monthly mortgage payment will look like — not just the loan portion, but every cost that comes with owning a home. Here is how to use it step by step.
Step 1 — Enter the Home Price
Start by typing the purchase price of the home you are considering. This is the full asking or agreed price before any down payment is applied.
Step 2 — Set Your Down Payment
Enter your down payment as either a dollar amount or a percentage — both fields are live and will sync with each other automatically. For example, type 20 in the % field and the dollar amount will calculate instantly, or type a specific dollar amount and the percentage will update. A down payment of at least 20% avoids PMI (private mortgage insurance).
Step 3 — Enter the Interest Rate
Enter the annual interest rate offered by your lender. If you are shopping around, try a few different rates to see how much difference even half a percent makes over the life of the loan. As of 2025, rates for a 30-year fixed mortgage typically range between 6% and 8% depending on your credit profile.
Step 4 — Choose Your Loan Term
Select how many years you want to repay the loan — 10, 15, 20, or 30 years. A shorter term means higher monthly payments but significantly less interest paid overall. A 30-year loan gives you the lowest monthly payment but you will pay the most interest in total.
Step 5 — Add Property Tax, Insurance, and HOA
These three costs are often overlooked by first-time buyers but they are a real part of your monthly obligation. Enter your estimated annual property tax and annual home insurance premium. If your community has a homeowners association, add the monthly HOA fee as well. All of these are included in your total monthly payment shown on the right.
How Is a Mortgage Payment Calculated?
The core of your mortgage payment is the Principal and Interest (P&I) portion. This is calculated using a standard amortization formula that spreads your loan balance evenly across all your payments so that every payment is the same amount, even though the mix of principal and interest shifts over time.
In the early years of your mortgage, the majority of each payment goes toward interest because the loan balance is high. Over time, as your balance decreases, more of each payment goes toward paying down the principal. By the final years of your loan, almost everything goes to principal. This is why the amortization schedule is such a powerful tool — it shows you exactly how your equity grows year by year.
The formula used is: M = P × [r(1+r)ⁿ] / [(1+r)ⁿ − 1] — where P is your loan amount, r is your monthly interest rate (annual rate divided by 12), and n is the total number of payments (years × 12).
What Does Each Term Mean?
PITI
PITI stands for Principal, Interest, Taxes, and Insurance. It is the standard term mortgage professionals use to describe the full monthly housing payment. Lenders use your PITI payment when calculating your debt-to-income ratio (DTI) to determine whether you qualify for a loan.
Principal
The principal is the actual amount you borrowed — the loan balance. Each monthly payment chips away at this balance. The portion of your payment that goes to principal builds your equity in the home.
Interest
Interest is the cost of borrowing money, paid to the lender. It is calculated as a percentage of your remaining loan balance each month. The higher your balance and the higher the rate, the more interest you pay. Over a 30-year loan at 7%, you can end up paying nearly as much in interest as the original loan amount.
Down Payment
The down payment is the upfront cash you pay toward the purchase price. The remainder becomes your loan. A larger down payment reduces your loan amount, lowers your monthly payment, saves you significant interest over time, and eliminates the need for PMI if you put down 20% or more.
Property Tax
Property taxes are charged by your local government based on the assessed value of your home. They vary widely by location — from under 0.5% annually in some states to over 2% in others. Your lender typically collects a portion of your annual property tax each month and holds it in an escrow account, then pays the tax bill on your behalf.
Home Insurance (Hazard Insurance)
Home insurance protects your property against fire, storms, theft, and other damages. Lenders require you to carry it as a condition of the loan. Like property tax, it is usually escrowed — collected monthly and paid by the lender when the annual premium is due. A typical policy runs between $800 and $2,000 per year depending on your home's value and location.
PMI — Private Mortgage Insurance
PMI is required when your down payment is less than 20% of the home price. It protects the lender (not you) in case you default on the loan. PMI typically costs between 0.41% and 1.50% of your loan amount per year — and your credit score is the biggest factor. A 760+ score might cost you just $0.41 per $100 borrowed annually, while a score below 640 can push that to $1.30 or more. The good news is that PMI goes away once you've built up 20% equity in your home — either by paying down the loan or through home value appreciation.
HOA — Homeowners Association Fee
If you buy a home in a planned community, condo, or townhome complex, you may be required to pay HOA fees. These cover shared amenities and maintenance like landscaping, pools, hallways, and building exteriors. HOA fees are not included in your mortgage but they are a real monthly cost and lenders factor them into your DTI.
Loan Term
The loan term is the length of time you have to repay the mortgage. The most common terms are 15 and 30 years. A 15-year mortgage builds equity faster and costs far less in interest, but the monthly payments are considerably higher. A 30-year mortgage is the most popular choice because it offers the lowest monthly payment, giving borrowers more flexibility in their budget.
Amortization
Amortization is the process of paying off your loan in equal installments over time. Even though your payment stays the same every month, the split between principal and interest changes with every payment. The amortization schedule in this calculator shows you a year-by-year view of how much you are paying toward principal versus interest, and what your remaining balance is at the end of each year.
Use this calculator on your own website