Mortgage Calculator: Estimate Your True Monthly Payment (PITI)

Buying a home is one of the biggest financial decisions you’ll make. Our Mortgage Calculator helps you estimate your full monthly payment—including principal, interest, property taxes, homeowners insurance, and optional PMI—so you can budget with confidence and compare scenarios side by side.

What This Calculator Includes

• Principal and interest (standard amortized payment)
• Property taxes based on your entered annual tax rate
• Homeowners insurance as an annual dollar amount
• PMI (private mortgage insurance) when your down payment is below 20%

This gives you a realistic PITI estimate (Principal, Interest, Taxes, Insurance), the figure most lenders use when gauging affordability.

How to Use It

1. Enter your home price and down payment percentage.
2. Add your annual interest rate and loan term (years or months).
3. Provide estimated property tax rate and annual homeowners insurance.
4. If your down payment is below 20%, set an annual PMI rate to model its impact.
5. Click “Calculate” to see your monthly PITI, total interest, and total cost.

You can adjust inputs quickly to compare different down payments, rates, or terms.

Interpreting Your Results

• Monthly Payment (PITI): Your estimated total monthly housing payment.
• Principal & Interest: The mortgage portion only, excluding taxes and insurance.
• Property Tax and Insurance: Added monthly amounts based on your inputs.
• PMI: Only applies while your down payment is under 20%; it may fall off in practice once your loan-to-value drops enough.
• Total Interest (Over Term): How much interest you’ll pay across the life of the loan for the principal-and-interest portion.
• Total Cost (Over Term): Your PITI payment multiplied by the number of months.

Common Mistakes to Avoid

• Ignoring taxes and insurance: Focusing only on principal and interest underestimates your budget.
• Assuming PMI always applies: With ≥ 20% down, PMI typically isn’t required.
• Overlooking term trade-offs: Shorter terms raise the monthly payment but reduce total interest significantly.

Keep Learning

If you’re weighing mortgage options, these guides can help:

• Mortgage Down Payment: How Much Do You Really Need?
• Fixed vs Adjustable-Rate Mortgages (ARM): Which Is Right for You?
• Understanding Closing Costs and How to Save
• How Extra Payments Cut Years Off Your Mortgage
• What Is PMI and How to Get Rid of It?

Sources

• Consumer Financial Protection Bureau (CFPB) – “Owning a Home” resources
• Freddie Mac – Mortgage basics and PMI overview