Estimate Your Full Monthly House Payment
Your mortgage payment is more than just the loan. Most lenders collect principal, interest, property taxes and homeowners insurance together in one monthly payment, known as PITI. This mortgage calculator adds all four together so you can see the real monthly cost of a home before you make an offer.
Enter the home price, your down payment, the interest rate, the loan term and your yearly property tax and insurance. The calculator shows your monthly principal and interest, monthly tax, monthly insurance, total monthly PITI, total paid over the term and total interest. PMI and HOA dues are not included, so add them if they apply to you.
Below the results, an amortization schedule shows how much of each payment goes to principal and interest and how your loan balance falls. Switch between a yearly summary and a month-by-month view.
How the Mortgage Payment Is Calculated
The loan amount is the home price minus your down payment. The principal and interest portion uses the standard formula M = P × r(1 + r)^n ÷ [(1 + r)^n − 1], with r as the monthly rate and n as the number of monthly payments. Annual property tax and insurance are divided by 12 and added on top.
Example: a $400,000 home with 20% down ($80,000) leaves a $320,000 loan. At 6.5% for 30 years, principal and interest is about $2,023 per month. Add $4,800 a year in property tax ($400/month) and $1,500 a year in insurance ($125/month) for a total of about $2,548 per month.
Pay Off Your Mortgage Early With Extra Payments
Enter an amount in the Extra Monthly Payment box to see how much sooner you could own your home. The extra amount goes straight to principal, so you are charged interest on a smaller balance every month after that.
Example: on a $320,000 loan at 6.5% for 30 years, paying an extra $300 per month pays the mortgage off in about 21 years 2 months instead of 30 years. That is almost 9 years sooner, and it saves about $138,000 in interest. Even $200 extra per month saves about $105,000 and over 6 years.
Before you start, confirm that your loan has no prepayment penalty, and ask your servicer to apply the extra amount to principal.
Ways to Lower Your Mortgage Payment
- Put down at least 20% to avoid private mortgage insurance (PMI) on most conventional loans.
- Shop several lenders. Rate quotes for the same borrower can differ noticeably.
- Consider buying discount points if you plan to stay in the home for many years.
- Compare 15-year and 30-year terms. A 15-year loan has higher payments but saves a large amount of interest.
Frequently Asked Questions
What does PITI stand for?
PITI stands for Principal, Interest, Taxes and Insurance, the four main parts of a typical monthly mortgage payment. Lenders often use your PITI to decide how much house you can afford.
Is it better to make extra mortgage payments or invest the money?
It depends on your interest rate and goals. Extra payments give a guaranteed return equal to your mortgage rate, while investing may earn more over time but with risk. Many people first build an emergency fund and capture any employer retirement match. This calculator shows exactly how much interest extra payments save.
How much house can I afford?
A common guideline is to keep your total housing payment at or below about 28% of your gross monthly income, and all monthly debt payments at or below about 36%. Try different home prices in the calculator to find a payment that fits those limits.