Mortgage Calculator
Calculate mortgage payments including principal, interest, taxes, and insurance (PITI).
Loan details
$70,000
Taxes, insurance & extras
$300/mo
$100/mo
Not charged at 20%+ down
Pays the loan down faster
Affordability check
Before taxes
Total monthly payment
Principal, interest, taxes, insurance
Loan amount
80.0% LTV
Total interest
over the loan
Monthly breakdown
Pay biweekly & save
Pay $885 every two weeks instead of $1,770 monthly — that's one extra payment a year, straight to principal.
Total cost: principal vs interest
Balance over time
Affordability
How it works
A mortgage calculator amortizes your loan: it finds the fixed monthly payment that pays off the balance over the full term, then splits each payment into interest (charged on the remaining balance) and principal (what's left). Early payments are mostly interest; later ones are mostly principal. This tool also layers on property tax, homeowners insurance, and PMI to show your true PITI payment.
Monthly principal & interest (P&I)
M = P · r(1 + r)ⁿ / [(1 + r)ⁿ − 1]
- M
- monthly principal + interest payment
- P
- loan amount (home price − down payment)
- r
- monthly interest rate (annual rate ÷ 12)
- n
- total number of payments (years × 12)
Worked example
- Loan amount P = $300,000
- Annual rate = 6.5% → r = 0.065 ÷ 12 = 0.005417
- 30-year term → n = 30 × 12 = 360 payments
- (1 + r)ⁿ = 1.005417³⁶⁰ ≈ 6.99
- M = 300,000 × 0.005417 × 6.99 ÷ (6.99 − 1)
Monthly P&I ≈ $1,896 — and ≈ $382,633 total interest over 30 years.
Good to know
- PITI vs P&I: lenders quote the full payment (Principal, Interest, Taxes, Insurance). The formula above only covers P&I — taxes and insurance are added on top.
- Put down less than 20% and you also pay PMI (~0.5–1% of the loan per year) until you reach 20% equity.
- A 15-year term roughly doubles the principal portion of each payment but cuts total interest dramatically — on the example above, interest drops from ~$383k to ~$142k.
- Even one extra payment a year shortens a 30-year loan by ~4–5 years because every extra dollar goes straight to principal.
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Frequently Asked Questions
How do I use a mortgage calculator?
Enter your home price, down payment (amount or percentage), loan term (15 or 30 years), and interest rate. Our calculator instantly shows your monthly payment including principal, interest, taxes, insurance (PITI), and PMI if applicable. You can also use our live market rates updated daily.
What is PITI in mortgage payments?
PITI stands for Principal, Interest, Taxes, and Insurance - the four components of most mortgage payments. Principal reduces your loan balance, interest is the cost of borrowing, property taxes go to local government, and homeowners insurance protects your property. Our calculator includes all PITI components.
How much house can I afford with my income?
Most lenders use the 28/36 rule: housing expenses shouldn't exceed 28% of gross monthly income, and total debt shouldn't exceed 36%. For example, with $5,000 monthly income, aim for maximum $1,400 housing payment. Our calculator helps you stay within affordable ranges.
What's the difference between 15 and 30 year mortgages?
30-year mortgages have lower monthly payments but higher total interest. 15-year mortgages have higher payments but save significantly on interest and build equity faster. Example: $300,000 loan at 6.5% costs $382,633 interest over 30 years vs $142,387 over 15 years.
When is PMI required and how much does it cost?
PMI (Private Mortgage Insurance) is required when you put down less than 20%. It typically costs 0.5-1% of your loan amount annually. On a $300,000 loan, that's $125-250/month. PMI can be removed once you reach 20% equity through payments or appreciation.
What are current mortgage rates?
Our calculator pulls current mortgage rates from official sources rather than quoting a fixed number here, because rates move daily. Use the rate shown in the calculator as a starting point, then get quotes: your actual rate depends on credit score, down payment, loan type, and term (15-year fixed typically prices well below 30-year fixed).
How do I calculate mortgage payments manually?
The mortgage payment formula is: M = P[r(1+r)^n]/[(1+r)^n-1], where M=monthly payment, P=principal, r=monthly interest rate, n=number of payments. Our calculator does this instantly and adds taxes, insurance, and PMI for complete accuracy.
What closing costs should I expect?
Closing costs typically range from 2-5% of the home price. This includes loan origination fees (0.5-1%), appraisal ($300-700), title insurance ($500-1,500), attorney fees, recording fees, and prepaid items like property taxes and insurance.
Should I pay points to lower my interest rate?
One point costs 1% of your loan amount and typically lowers your rate by 0.25%. Points make sense if you'll keep the mortgage long enough for monthly savings to exceed the upfront cost. Our calculator can help you compare scenarios with and without points.
What documents do I need for a mortgage application?
You'll need: 2 years of tax returns, 2 months of bank statements, recent pay stubs, W-2s or 1099s, driver's license, Social Security card, and documentation of any additional income or assets. Self-employed borrowers need additional business documentation.