PITI stands for Principal, Interest, Taxes, and Insurance — the four components of a full monthly mortgage payment. This calculator shows all four when you enter property tax and insurance amounts.

How do extra payments reduce my mortgage?

Extra principal payments reduce your outstanding balance faster, which means less interest accrues each month. Even $100–$200 extra per month can shave years off a 30-year mortgage and save tens of thousands in interest.

What interest rate should I use?

Use the annual interest rate quoted by your lender. As of 2025, 30-year fixed rates range from 6.5–7.5% for borrowers with good credit.

What is an amortization schedule?

An amortization schedule shows each monthly payment broken down into principal and interest. Early payments are mostly interest; later payments shift toward principal as the balance decreases.

Does this calculator include PMI?

Yes — enter a PMI rate in the optional section. PMI typically costs 0.5–1.5% of the original loan amount per year and applies when your down payment is less than 20%.

Mortgage Calculator

A mortgage is a loan secured by your home — you borrow money to purchase property, then repay principal plus interest over 15–30 years through fixed monthly payments, with your home as collateral.

Calculate your monthly payment, full PITI breakdown, extra payment savings, and complete amortization schedule for any home loan.

Use this mortgage calculator to calculate your monthly payment and test different scenarios instantly — change the rate, term, or extra payment to see the exact impact on total interest and payoff date.

Home Price ($)

Down Payment ($)

20%

Interest Rate (%)

Loan Term

Optional — Taxes, Insurance & Fees

Property Tax ($/year)

Home Insurance ($/year)

PMI Rate (%/year)

HOA Fees ($/month)

Extra Payment

Extra Monthly Payment ($)

Mortgage Results

                Monthly P&I
                —
              

                Total Monthly Cost
                —
              

Loan Amount —

Total Interest —

Total Cost (P+I) —

Payoff Date —

Monthly Payment Breakdown

How to Use the Mortgage Calculator

Enter your home price, down payment, interest rate, and loan term for an instant payment estimate. Use the optional fields to add property taxes, insurance, PMI, and HOA — the calculator will show your full monthly housing cost (PITI) and a visual breakdown. Add an extra monthly payment to see exactly how much interest you'd save and how early you'd pay off.

Understanding PITI

Your total monthly mortgage cost has four parts: Principal (reduces your balance), Interest (the lender's charge), Taxes (property tax via escrow), and Insurance (homeowner's insurance via escrow). Lenders qualify you based on your full PITI ratio to gross income — typically requiring PITI ≤ 28% of gross monthly income.

How Extra Payments Work

Extra principal payments go directly against your loan balance, reducing the amount interest accrues on each month. Even $200/month extra on a $320,000 loan at 6.75% saves over $60,000 in interest and cuts nearly 6 years off a 30-year mortgage. The savings are front-loaded: extra payments made early in the loan life have the greatest impact.

The Mortgage Payment Formula

M = P × [r(1+r)ⁿ] / [(1+r)ⁿ − 1] — where P = principal, r = monthly rate (annual ÷ 12), n = total payments.

30-Year vs. 15-Year Mortgage

On a $320,000 loan, a 30-year at 6.75% costs $2,076/month with $427,000 total interest. A 15-year at 6.25% costs $2,745/month but only $174,000 in interest — saving $253,000. The 15-year is dramatically cheaper if you can handle the higher payment.

How Much House Can You Afford?

Lenders use two key ratios. The front-end ratio: your total PITI should not exceed 28% of gross monthly income. The back-end ratio: all monthly debt payments (PITI + car loans + student loans + credit cards) should stay below 36–43%. Example: with $8,000/month gross income, your maximum PITI is $2,240 (28%), and all debts combined should stay below $2,880–$3,440. The calculator uses your actual inputs — compare the PITI result to these thresholds to check affordability.

Are Mortgage Points Worth It?

Discount points let you pay upfront to permanently lower your rate. Each point costs 1% of the loan amount and typically buys 0.25% off the rate. On a $320,000 loan, one point = $3,200 at closing, saving roughly $52/month. Break-even: $3,200 ÷ $52 ≈ 62 months (~5 years). If you plan to stay longer than the break-even, buying points usually saves money. If you might sell or refinance sooner, skip points and keep the cash.

5 Common Mortgage Mistakes to Avoid

Not shopping lenders — Getting just one quote costs the average buyer $1,500+ over the loan term. Get quotes from at least 3 lenders on the same day so rates are comparable.
Opening new credit before closing — Any new credit inquiry or account can change your debt ratios and derail final approval. Freeze all credit activity from application through closing day.
Underestimating total ownership costs — Property tax, insurance, HOA, and maintenance typically add 2–4% of home value per year. A $400,000 home can cost $8,000–$16,000 annually beyond the mortgage P&I.
Ignoring the 15-year option — If the payment fits, a 15-year mortgage saves $200,000+ in interest over the life of the loan. Run both scenarios in this calculator before deciding.
Not getting pre-approved — Pre-approval (not pre-qualification) gives you a verified budget and a stronger offer position with sellers, especially in competitive markets.

Key Insight: Adding just $200/month in extra principal payments to a $320,000 loan at 6.75% saves over $60,000 in total interest and shaves nearly 6 years off a 30-year mortgage — with zero refinancing costs. Use this calculator to see the exact savings for your numbers.

Understanding Closing Costs

Closing costs typically run 2–5% of the loan amount — $6,400 to $16,000 on a $320,000 loan. They include origination fees, appraisal (~$400–$600), title insurance (~$1,000–$2,000), recording fees, and prepaid interest for the partial first month. Request a Loan Estimate within 3 business days of application — lenders are required to provide this standardized form, making it easy to compare total closing costs across lenders side by side.

Mortgage Calculator — Frequently Asked Questions

PITI is Principal, Interest, Taxes, and Insurance — the four components of a complete monthly mortgage payment. Lenders use PITI to calculate your front-end debt ratio. Most conventional loans require PITI ≤ 28% of gross monthly income. Enter taxes and insurance in the optional fields to see your full PITI.

Extra payments directly reduce principal, which reduces future interest. On a $320,000 30-year loan at 6.75%, paying $200 extra per month saves ~$65,000 in interest and pays off in 24 years instead of 30. The savings grow with the extra payment amount — $500/month extra would save ~$120,000 and pay off in 21 years.

PMI (Private Mortgage Insurance) is required by most lenders when your down payment is less than 20%. It typically costs 0.5–1.5% of the loan amount annually. By federal law (Homeowners Protection Act), lenders must automatically cancel PMI when your loan-to-value ratio reaches 78% of the original purchase price.

The amortization schedule shows every payment broken down into principal and interest, plus your remaining balance. In early payments, most of the money goes to interest. By year 20 of a 30-year loan, the majority of each payment goes to principal. The schedule also shows annual summaries for quick review.

As of 2025, 30-year fixed mortgage rates are in the 6.5–7.5% range for borrowers with good credit (720+ score). 15-year fixed rates run about 0.5–0.75% lower. Your actual rate depends on your credit score, down payment, debt-to-income ratio, and the lender. Get quotes from 3+ lenders to find the best rate.

Formula sources & accuracy standards: Calculator Methodology · Editorial Policy