Home Mortgage Calculator
Find your true monthly housing cost - P&I, taxes, insurance, and PMI in one place.
🏡 What is a Home Mortgage Calculator?
A home mortgage calculator helps you estimate the true monthly cost of buying a home - not just the principal and interest payment, but the complete PITI figure: Principal, Interest, Taxes, and Insurance. Most online calculators stop at P&I, leaving buyers surprised when their first mortgage statement is $400 higher than expected due to property taxes and insurance escrow.
This calculator gives you the full picture. Enter your home price, down payment percentage, interest rate, and loan term to get the core payment. Then add your local property tax rate and annual homeowners insurance premium to see exactly what you'll owe each month. If your down payment is below 20%, Private Mortgage Insurance (PMI) is automatically estimated and included - because lenders will require it.
Beyond the monthly payment, the year-by-year amortization table shows how your balance shrinks over time, how much goes to interest in the early years (spoiler: a lot), and when you'll cross the 80% loan-to-value threshold to request PMI cancellation. This data is critical for decisions like whether to put more down, choose a 15-year over a 30-year term, or make extra principal payments.
Real estate agents, first-time buyers, and seasoned investors all use mortgage calculators as the first step in evaluating any property. Our tool is designed for any market worldwide - use the currency selector to switch from USD to your local currency. The math is identical regardless of currency: the amortized payment formula M = P × r × (1+r)^n ÷ ((1+r)^n − 1) is universal across all mortgage markets.
📐 Formula
M = P × r × (1+r)n ÷ ((1+r)n − 1)
M = monthly principal & interest payment
P = loan principal (home price − down payment)
r = monthly interest rate = annual rate ÷ 12 ÷ 100
n = total payments = loan term in years × 12
Total PITI = M + (home price × tax rate ÷ 12) + (annual insurance ÷ 12) + PMI
PMI = loan amount × 0.0085 ÷ 12 (when down payment < 20%)
Example: $350,000 home, 20% down, 6.5% rate, 30 years: P = $280,000; r = 0.005417; n = 360; M = $1,770/month
📖 How to Use This Calculator
Steps to Calculate Your Complete Mortgage Payment
1
Enter the home price - Type the full purchase price or use the slider. The displayed label updates in real time as you move the slider.
2
Set your down payment percentage - The dollar amount and remaining loan balance appear below the slider. Drop below 20% and the PMI row appears in results to show the added monthly cost.
3
Enter rate and loan term - Use your lender quote for the rate. 30 years is standard in most markets; 15 years cuts total interest roughly in half at a higher monthly payment.
4
Add property tax and insurance - Check your county assessor's website for the local tax rate (US average ≈ 1.1%). Get an insurance quote or use $1,200–$2,000/year as a starting estimate.
5
Review the full breakdown - Click Calculate to see P&I, total PITI, and the amortization table. Adjust down payment or term to compare scenarios instantly.
💡 Example Calculations
Example 1 — First-Time Buyer, $350,000 Home with 10% Down
$350,000 home | 10% down | 6.5% rate | 30-year term | 1.1% tax | $1,500/yr insurance
1
Down payment = $350,000 × 10% = $35,000. Loan principal = $315,000.
2
Monthly P&I: r = 6.5/12/100 = 0.005417; n = 360. M = $315,000 × 0.005417 × (1.005417)^360 ÷ ((1.005417)^360 − 1) = $1,991/month.
3
Property tax = $350,000 × 1.1% ÷ 12 = $321/month. Insurance = $1,500 ÷ 12 = $125/month. PMI (since <20% down) = $315,000 × 0.85% ÷ 12 = $223/month.
4
Total PITI = $1,991 + $321 + $125 + $223 = $2,660/month. Total interest over 30 years = $401,760.
Monthly PITI = $2,660 | PMI saves ~$2,670/yr if refinanced to 20% equity
Try this example →Example 2 — Move-Up Buyer, $600,000 Home with 20% Down, 15-Year Term
$600,000 home | 20% down | 6.0% rate | 15-year term | 1.2% tax | $2,000/yr insurance
1
Down payment = $600,000 × 20% = $120,000. Loan = $480,000. No PMI.
2
Monthly P&I at 6%, 15 years: r = 0.005; n = 180. M = $480,000 × 0.005 × (1.005)^180 ÷ ((1.005)^180 − 1) = $4,051/month.
3
Tax = $600,000 × 1.2% ÷ 12 = $600/month. Insurance = $2,000 ÷ 12 = $167/month. Total PITI = $4,818/month.
4
Total interest = $4,051 × 180 − $480,000 = $249,180 vs $631,200 on a 30-year at 6.5%. Saving over $380,000 by choosing 15 years.
Total PITI = $4,818/month | Total interest = $249,180
Try this example →Example 3 — Affordable Home, $200,000 with 5% Down
$200,000 home | 5% down | 7.0% rate | 30-year term | 0.9% tax | $1,200/yr insurance
1
Down = $10,000. Loan = $190,000. PMI required (5% down).
2
Monthly P&I: r = 7/12/100 = 0.005833; n = 360. M = $190,000 × 0.005833 × (1.005833)^360 ÷ ((1.005833)^360 − 1) = $1,264/month.
3
Tax = $200,000 × 0.9% ÷ 12 = $150/month. Insurance = $1,200 ÷ 12 = $100/month. PMI = $190,000 × 0.85% ÷ 12 = $134/month.
Total PITI = $1,648/month | PMI drops off when balance reaches ~$160,000
Try this example →❓ Frequently Asked Questions
What does PITI mean in a mortgage payment?
PITI stands for Principal, Interest, Taxes, and Insurance - the four components of a complete monthly mortgage payment. Principal reduces your loan balance; interest is the borrowing cost; taxes are collected in escrow and paid to your local government; insurance includes homeowners coverage and PMI if your down payment is under 20%. Lenders evaluate your ability to pay PITI, not just P&I, when approving you.
How much down payment do I need to avoid PMI?
You need at least 20% down to avoid Private Mortgage Insurance on a conventional loan. On a $350,000 home that means $70,000 down. PMI typically adds 0.5%–1.5% of the loan amount per year to your payment. You can request PMI cancellation once your loan-to-value ratio reaches 80%, and lenders must automatically cancel it at 78% LTV per the Homeowners Protection Act.
What is a good interest rate for a home mortgage today?
Mortgage rates vary with the federal funds rate, bond markets, your credit score, loan type, and term. As of 2025–2026, 30-year fixed rates have ranged from 6%–7.5% for well-qualified borrowers in the US. A credit score above 740 typically earns the best rate tier. Even a 0.5% rate difference on a $400,000 loan changes total interest by roughly $48,000 over 30 years, so shopping multiple lenders matters.
Is a 15-year or 30-year mortgage better?
A 15-year mortgage builds equity faster and pays far less interest - often 50–60% less total interest than a 30-year. However, the monthly payment is typically 40–50% higher. A 30-year mortgage gives flexibility: lower required payment with the option to pay extra when you can. Choose 15 years if the payment is comfortably affordable without stretching your budget; choose 30 years if you need the lower required payment or want to invest the difference.
How is property tax calculated in my mortgage payment?
Most lenders collect property tax as part of your monthly payment into an escrow account. The annual tax bill is divided by 12 and added to your P&I. The effective rate varies from under 0.5% (Hawaii, Alabama) to over 2% (Illinois, New Jersey). The US national average is about 1.1% of assessed value annually. Check your county assessor's website for your exact rate.
What is the debt-to-income ratio lenders use for mortgages?
Lenders use two DTI ratios: the front-end ratio (housing costs ÷ gross income) should be ≤ 28%, and the back-end ratio (all monthly debts ÷ gross income) should be ≤ 36–43% for conventional loans. FHA allows up to 57% back-end DTI in some cases. The lower your DTI, the better your approval odds and the lower rate you qualify for. This calculator shows your exact PITI so you can check it against these thresholds.
When does PMI get removed from my mortgage automatically?
Under the federal Homeowners Protection Act, your lender must automatically cancel PMI when your loan balance reaches 78% of the original purchase price (assuming you are current on payments). You can also request cancellation at 80% LTV. If your home has appreciated significantly, you may be able to get a new appraisal and request PMI removal based on current value - though requirements vary by lender. FHA loans have different rules and may require refinancing to remove MIP.
How do extra principal payments affect my mortgage?
Extra principal payments directly reduce your loan balance, which means every subsequent payment allocates less to interest and more to principal. On a $300,000, 30-year mortgage at 6.5%, adding just $200/month extra reduces the term by about 5.5 years and saves roughly $75,000 in interest. Even a single extra payment per year (one extra P&I annually) can shave 4–5 years off the term. There is typically no prepayment penalty on conventional mortgages.
Can I deduct mortgage interest from my taxes?
US homeowners can deduct mortgage interest on loans up to $750,000 ($375,000 for married filing separately) if they itemize deductions. In the early years of a mortgage, interest comprises most of your payment, making this deduction substantial. However, since the 2017 Tax Cuts and Jobs Act doubled the standard deduction, many homeowners find itemizing no longer makes sense. Consult a tax professional to determine if itemizing benefits your specific situation.
What closing costs are added on top of the down payment?
Closing costs typically run 2%–5% of the home purchase price and include lender origination fees (0.5%–1%), home appraisal ($400–$700), title search and title insurance (0.5%–1%), homeowners insurance first year (~$1,500), prepaid interest (up to 30 days), escrow setup (2–3 months of taxes), recording and transfer fees, and attorney fees in some states. On a $350,000 purchase, budget $7,000–$17,500 in closing costs on top of your down payment.
How much house can I afford on a $100,000 salary?
Using the 28% front-end DTI rule: $100,000 annual / 12 = $8,333/month gross; 28% of that = $2,333 max PITI. With 1.1% property tax and $1,500/yr insurance at 6.5% for 30 years, that PITI supports roughly $280,000–$300,000 in home price with a 20% down payment. With 5% down and PMI, the home price drops to about $240,000–$260,000 to stay within the same monthly budget. Always include taxes, insurance, and HOA in your affordability calculation.