Most calculators only show principal and interest. This one estimates your real monthly cost (often called PITI) so there are no surprises. Results are an educational estimate, not a loan offer.
How your mortgage payment is calculated
A mortgage payment is more than just paying back the money you borrowed. Lenders usually collect four things in one monthly bill, known as PITI: principal, interest, taxes and insurance. This calculator adds PMI and HOA on top so the number matches what actually leaves your account.
1. Principal & interest
The loan amount is the home price minus your down payment. Using standard amortization, we spread that balance over the term at your interest rate to find the fixed monthly principal-and-interest portion. Early payments are mostly interest; later payments are mostly principal.
2. Property taxes and insurance
Local governments charge property tax based on your home's value — the US average is roughly 1.1% per year, but it ranges from under 0.3% to over 2%. Homeowners insurance protects the property. Lenders typically collect both monthly into an escrow account and pay the bills for you.
3. PMI and HOA
If your down payment is under 20%, lenders usually require private mortgage insurance (PMI) until you build enough equity. If the home is in a managed community, monthly HOA dues are an additional cost that is not part of the loan but still hits your budget.
Guides & resources
New to mortgages? These plain-English guides walk you through it:
- How mortgages work — the basics, start to finish.
- What's in your monthly payment (PITI) — every line explained.
- What is PMI? — why it exists and how to drop it.
- Fixed vs adjustable-rate — which loan type fits you.
- How much house can I afford? — the 28/36 rule.
- See all guides →
Frequently asked questions
How accurate is this mortgage calculator?
The principal-and-interest figure is accurate for the numbers you enter. Taxes, insurance and PMI are estimates because they vary by location, property and lender, so treat the total as a strong ballpark rather than an exact quote.
What is PITI?
PITI stands for Principal, Interest, Taxes and Insurance — the four parts most lenders bundle into your monthly payment. See what's included in a mortgage payment.
Do I have to pay PMI?
Usually only if your down payment is under 20% on a conventional loan. PMI typically ends once you reach about 20% equity. More in what is PMI.
Is a 15-year or 30-year mortgage better?
A 15-year loan has higher monthly payments but far less total interest and a lower rate. A 30-year loan lowers the monthly payment but costs much more over time. Try both terms in the calculator to compare.