Mortgage Calculator

PITI stands for Principal, Interest, Taxes, and Insurance. It represents the four components of a typical monthly mortgage payment. Principal reduces the loan balance, interest is what the lender charges, property taxes fund local government services, and insurance protects your home. We break down all four in the results so you can see exactly where every dollar goes.

A larger down payment reduces the loan amount, which lowers both the monthly principal-and-interest portion and the total interest paid over the life of the loan. Putting down 20% or more also lets you avoid private mortgage insurance (PMI), saving an additional $50 to $200+ per month depending on the loan size. Use the slider to compare different down payment scenarios instantly.

A 15-year mortgage has higher monthly payments but a lower interest rate and dramatically less total interest. A 30-year mortgage keeps monthly payments affordable but costs significantly more over the full term. For example, on a $280,000 loan at 6.5%, a 30-year term costs roughly $357,000 in interest while a 15-year term costs about $147,000. We recommend trying both tenures in the calculator to see the trade-off for your specific numbers.

Private Mortgage Insurance (PMI) is required by most lenders when your down payment is less than 20% of the home price. PMI typically costs 0.5% to 1.5% of the original loan amount per year and is added to your monthly payment. Once your equity reaches 20%, you can request PMI removal. Use the PMI slider to add your estimated monthly cost and see how it affects your total payment.

HOA (Homeowners Association) fees are not part of the mortgage itself, but lenders include them when calculating your debt-to-income ratio and overall affordability. Monthly HOA fees typically range from $100 to $700+ depending on the community and its amenities. We include an HOA field so you can see the true total monthly housing cost in one place.

We calculate monthly property tax as a percentage of the home price divided by 12. The default rate of 1.2% reflects the US national average, but actual rates vary widely by state and county, from under 0.5% in Hawaii to over 2% in New Jersey and Illinois. Adjust the property tax slider to match your local rate for a more accurate estimate.

A fixed-rate mortgage locks in the same interest rate for the entire loan term, so your principal-and-interest payment never changes. An adjustable-rate mortgage (ARM) starts with a lower introductory rate that resets periodically, usually after 5 or 7 years. ARMs can save money early on but carry the risk of higher payments later. This calculator models a fixed-rate loan. If you have an ARM, re-enter the new rate after each reset to see the updated payment.

A common guideline is the 28% rule: your total monthly housing payment (principal, interest, taxes, insurance, HOA, and PMI) should not exceed 28% of your gross monthly income. We calculate and display the recommended minimum annual income based on this rule so you can gauge whether a home fits your budget.

No. Closing costs are one-time fees paid at the time of purchase and typically range from 2% to 5% of the loan amount. They include appraisal fees, title insurance, origination fees, and prepaid items like the first year of homeowner's insurance. We focus on the recurring monthly payment so you can plan your ongoing budget accurately.

The principal-and-interest calculation is mathematically exact for a standard fixed-rate, fully amortizing loan. Property tax, insurance, HOA, and PMI are estimated based on the values you enter. Real-world payments may differ slightly due to escrow adjustments, lender-specific rounding, or rate changes. For budgeting and comparison purposes, the numbers are precise.