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Mortgage Calculator — Know Your True Monthly Payment

Estimate your full monthly mortgage payment — principal, interest, property taxes, homeowners insurance, and PMI (PITI). Enter the home price, down payment, interest rate, and term to see what owning the home really costs each month.

Your numbers

$

The purchase price of the home.

$

Cash paid up front. 20%+ avoids PMI.

%

Your quoted annual rate, e.g. 6.5.

yr

Repayment period in years, often 15 or 30.

$

Annual property tax for the home.

$

Annual homeowners insurance premium.

%

Annual PMI as a % of the loan; ignored at 20%+ down.

Results

Monthly payment$2,975.44
Principal & interest$2,275.44
Property tax$400.00
Home insurance$150.00
PMI$150.00
Loan amount$360,000.00
Down payment10%
Total interest$459,160.16

Your monthly mortgage payment is more than just the loan. Lenders bundle four costs together into a figure known as PITI: Principal, Interest, Taxes, and Insurance. When your down payment is under 20%, a fifth cost — private mortgage insurance (PMI) — rides along until you build enough equity. This calculator assembles all of them so the number you see is the true cost of owning the home each month, not just the loan payment.

What goes into your payment

  • Principal & interest is the amortizing loan itself. You borrow the home price minus your down payment, then repay it in equal monthly installments. Early payments are mostly interest; as the balance falls, more goes to principal.
  • Property taxes are set by your local government as a share of the home’s value. Lenders usually collect them monthly in an escrow account and pay the bill for you.
  • Homeowners insurance protects the property and is almost always required by the lender. It too is typically escrowed monthly.
  • PMI applies only while your loan-to-value ratio is above 80% — that is, with less than 20% down. It protects the lender, not you, and falls away once you reach 20% equity.

A worked example

Take a $400,000 home with $40,000 down (10%), financed at 6.5% over 30 years, with $4,800 in annual property tax, $1,800 in insurance, and PMI of 0.5%:

  • Principal & interest: about $2,275.44
  • Property tax: $400.00 ($4,800 ÷ 12)
  • Home insurance: $150.00 ($1,800 ÷ 12)
  • PMI: $150.00 (0.5% of the $360,000 loan ÷ 12)
  • Total monthly payment (PITI): about $2,975.44

Over the full 30 years, the interest alone adds up to roughly $459,160 — which is exactly why the rate and term matter so much. Push the down payment to $80,000 (20%) and the PMI line drops to $0, trimming your payment immediately.

How to lower your monthly payment

A few levers move the number above:

  • Raise the down payment. A bigger down payment shrinks the loan and eliminates PMI once you cross 20%. It is the fastest way to cut the monthly cost.
  • Shop the rate. Even a half-point lower APR saves tens of thousands over 30 years. Compare full quotes, including points and fees, not just the headline rate.
  • Choose the term carefully. A 15-year loan carries a higher monthly payment but far less total interest than a 30-year loan; a 30-year loan keeps the payment affordable but costs more overall.
  • Watch taxes and insurance. They vary widely by state and county — in high-tax areas they can rival the loan payment itself, so use local figures for an honest estimate.

Reading your results

Use the total monthly payment to check the home fits your budget. A common benchmark is the 28/36 rule: keep housing under about 28% of gross monthly income and all debts under 36%. Adjust the inputs above to test scenarios — a larger down payment or a shorter term changes the picture quickly.

Estimates are for planning only and assume a fixed rate with no closing costs or HOA dues. Your lender’s Loan Estimate is the authoritative figure — see our disclaimer.

Frequently asked questions

What is included in a monthly mortgage payment (PITI)?
A typical monthly payment has four parts, abbreviated PITI: Principal and Interest (paying down the loan plus the lender’s charge), property Taxes, and homeowners Insurance. If your down payment is under 20%, private mortgage insurance (PMI) is usually added on top. This calculator combines all of them into your total monthly payment.
How much down payment do I need to avoid PMI?
On a conventional loan, putting down at least 20% of the home price (an 80% loan-to-value ratio) lets you avoid private mortgage insurance entirely. With less than 20% down, lenders typically charge PMI of about 0.3%–1.5% of the loan amount per year until you reach 20% equity. This tool drops PMI automatically once your down payment hits 20%.
How are property taxes and insurance worked into the payment?
Lenders usually collect property taxes and homeowners insurance monthly through an escrow account, then pay those bills on your behalf when they come due. We take your annual property-tax and insurance figures and divide each by 12 to add to your monthly payment, so the number reflects your true housing cost.
How much house can I afford?
A common guideline is the 28/36 rule: keep your total monthly housing payment (PITI) under about 28% of your gross monthly income, and all debt payments under 36%. Enter different home prices and down payments above to find a monthly PITI that fits comfortably within that range for your income.
Does a larger down payment lower my monthly payment?
Yes, in two ways. A bigger down payment shrinks the loan amount, which lowers principal and interest, and once you reach 20% down it also eliminates PMI. The trade-off is more cash up front, so weigh the monthly savings against keeping an emergency reserve.

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