Mortgage Calculator
Estimate total monthly housing payments including Principal, Interest, Taxes, and Insurance (PITI)
How to Use This Mortgage Calculator
- Enter the total market value of the property in Home Purchase Price ($).
- Specify your upfront equity contribution in Down Payment ($).
- Provide the fixed interest rate offered by your lender in Interest Rate (% Annual).
- Choose your repayment schedule length under Loan Term (Years).
- Include local real estate tax rates, annual insurance costs, and monthly homeowners association fees for a complete PITI calculation.
- Click “Calculate Monthly Payment” to generate a full monthly cost breakdown.
The PITI Mortgage Formula
Monthly Principal & Interest ($P\&I$) is calculated using standard loan amortization, while escrow items are divided into equal monthly installments:
Total Monthly = P&I + (Price × Tax Rate / 12) + (Insurance / 12) + HOA Fees
Where: i = Monthly Rate (Annual Rate ÷ 12), n = Loan Term in Months (Years × 12).
Frequently Asked Questions (FAQ)
What is PMI and when do I have to pay it?
Private Mortgage Insurance (PMI) is usually required by conventional lenders if your down payment is less than 20% of the home’s purchase price. It protects the lender in case of borrower default.
What does PITI stand for?
PITI stands for Principal, Interest, Taxes, and Insurance—the four main components that make up a typical monthly mortgage payment.
Should I choose a 15-year or 30-year fixed mortgage?
A 15-year mortgage offers lower interest rates and saves substantial money on total interest, but requires significantly higher monthly payments. A 30-year mortgage provides lower required monthly payments, giving you more flexibility in your monthly cash flow.