Mortgage Payment Calculator

The Mortgage Payment Calculator helps estimate monthly mortgage payments, including principal and interest. Use it to compare different loan amounts, rates, and terms when planning a home purchase.

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Mortgage · Monthly Payments

Mortgage Payment Calculator: Estimate Your Monthly Payment

A comprehensive guide to mortgage payments and PITI

Your monthly mortgage payment is more than just principal and interest—it also includes property taxes, homeowners insurance, and possibly mortgage insurance and HOA fees. Understanding your total monthly housing cost is essential for budgeting and determining affordability.

A Mortgage Payment Calculator estimates your total monthly payment including principal, interest, taxes, and insurance (PITI). This tool is essential for homebuyers budgeting for a purchase and homeowners planning their monthly expenses.

Understanding how loan amount, interest rate, term, and taxes affect your payment helps you make informed decisions about your home financing.

Monthly Payment Formula

M = P[r(1+r)^n]/[(1+r)^n-1]

Where:
M = Monthly payment
P = Principal loan amount
r = Monthly interest rate (annual rate / 12)
n = Total number of payments (years × 12)

Add to M:
- Property taxes (monthly)
- Homeowners insurance (monthly)
- PMI (if applicable)
- HOA fees (if applicable)

Frequently Asked Questions

What is PITI?

PITI stands for Principal, Interest, Taxes, and Insurance—the four components of your total monthly mortgage payment. This represents your complete housing cost.

How much should my mortgage payment be?

Financial experts recommend your housing payment not exceed 28-30% of your gross monthly income. Lenders typically use 28% as a qualification guideline.

Are property taxes included in my payment?

Most lenders collect property taxes monthly as part of your payment and hold them in escrow to pay the tax bill when due. This spreads the cost throughout the year.

When does PMI go away?

For conventional loans, PMI is automatically removed when you reach 22% equity based on the original payment schedule, or you can request removal at 20% equity.

Conclusion

Use the Mortgage Payment Calculator to estimate your total monthly housing cost. Understanding your complete payment helps you budget effectively and make informed home buying decisions.

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