Monthly Mortgage Calculator

Calculate your monthly mortgage payment including principal, interest, property taxes, and insurance (PITI). Find the total cost of your home loan and see how extra payments reduce your payoff time.

🏠 Home Finance📐 Monthly P&I = Loan x [r(1+r)^n] / [(1+r)^n-1]

Home price ($)

Down payment ($)

Interest rate (%)

Loan term (years)

Annual property tax ($)

Monthly insurance ($)

Please enter valid values.

Formula & Reference

Variable	Formula	Units
Monthly Mortgage Calculator	Monthly P&I = Loan x [r(1+r)^n] / [(1+r)^n-1]	$/month

Step-by-Step Examples

Example 1

$350K Home 20% Down

$350K home, $70K down, 6.75%, 30 years, $4,200/yr tax, $100/mo insurance.

Loan = $280,000
P&I = $280K x [0.005625 x 1.005625^360]/(1.005625^360-1) = $1,815/mo
PITI = $1,815 + $350 + $100 = $2,265/mo
Total interest: $373,313

✓ $2,265/month PITI

Example 2

FHA Minimal Down

$250K home, $8,750 down (3.5%), 6.75%, 30 years.

Loan = $241,250
P&I = $1,563/mo
Add FHA MIP (~$200/mo) for total payment

✓ $1,563/month P&I

Example 3

15-Year vs 30-Year

$300K loan at 6.5%.

30 years: $1,896/mo, $382K total interest
15 years: $2,614/mo, $170K total interest
15-year saves $212K in interest but $718/mo more

✓ 30yr=$1,896 vs 15yr=$2,614/month

Real-World Applications

🏠

Home Buyers

Calculate exactly what you'll owe monthly before making an offer.

💰

Budget Planning

Verify the mortgage fits your income (keep PITI under 28% of gross income).

📊

Real Estate Agents

Quickly estimate monthly payments for clients at different price points.

🏦

Lenders

Illustrate payment scenarios for borrowers comparing loan options.

Common Mistakes to Avoid

⚠️

Forgetting PITI - not just principal and interest

Your real monthly payment includes property taxes, homeowners insurance, and possibly PMI and HOA fees. A quoted P&I of $1,400 can easily become $2,000+ with all costs included.

⚠️

Using pre-qualification amounts as affordability limits

Lenders often approve you for more than is financially comfortable. The 28% rule: housing costs (PITI) should not exceed 28% of gross monthly income. 36% total debt (28% housing + 8% other) is the traditional limit.

⚠️

Ignoring PMI on low down payments

Down payments below 20% typically require PMI (Private Mortgage Insurance) of 0.5-1.5% of the loan annually. On a $300K loan, that's $1,500-$4,500/year ($125-$375/month) until you reach 20% equity.

Frequently Asked Questions

What is PITI? ▾

Principal, Interest, Taxes, Insurance. The full monthly cost of homeownership beyond just the loan payment. Always calculate PITI, not just P&I, when budgeting for a home purchase.

How much do I need for a down payment? ▾

Conventional: minimum 3% (PMI required under 20%). FHA: 3.5% minimum. VA/USDA: 0% for qualified buyers. Conventional 20% avoids PMI and secures better rates. More down = lower monthly payment.

How do I pay off my mortgage faster? ▾

Make one extra payment per year (reduces 30-year mortgage to about 26 years). Apply windfalls (tax refunds, bonuses) to principal. Consider bi-weekly payments. Even $100/month extra significantly reduces term and interest.

What affects my mortgage rate? ▾

Credit score (highest impact), loan-to-value ratio (down payment), loan type (conventional vs FHA vs VA), loan term (15 vs 30 year), points paid upfront, and current market rates. A 760+ credit score typically gets the best rates.

What is a good debt-to-income ratio for a mortgage? ▾

Front-end DTI (housing costs/gross income): under 28%. Back-end DTI (all debt/gross income): under 43% for most conventional loans, under 36% for the best rates. FHA allows up to 50% back-end DTI with compensating factors.