Mortgage Calculator

What goes into a monthly mortgage payment

Lenders call it PITI — Principal, Interest, Taxes, and Insurance. The principal and interest are the loan itself; the taxes and insurance are collected with your payment and held in escrow until they're due. This calculator adds them all (plus any HOA fee) so the figure you see is closer to what actually leaves your account each month — not just the loan portion.

How the loan payment is calculated

The principal-and-interest portion is a standard amortization: the loan amount (home price minus your down payment) is spread over the term so every payment is equal. Early payments are mostly interest; later ones are mostly principal. The formula is P × i ÷ (1 − (1 + i)⁻ⁿ), where i is the monthly rate and n the number of months.

Why the down payment matters so much

• It reduces the amount you finance, which lowers both the payment and the total interest.
• Putting down 20% or more typically avoids private mortgage insurance (PMI), an extra monthly cost lenders add on smaller down payments.
• A bigger down payment can also earn a slightly better rate.

Don't forget the "hidden" costs

Property tax and home insurance can add hundreds a month and vary widely by location — a 2% tax area costs far more than a 0.5% one on the same house. There's also maintenance (budget roughly 1% of the home's value per year), closing costs, and possibly HOA dues. A house you can "afford" on principal and interest alone may be tighter once the full PITI is in view.

FAQ

Is this accurate for my country?

The amortization math is universal, but tax and insurance norms differ by country and the currency shown is US dollars. Use your local annual tax and insurance figures and read the result as your local currency.

Does it include PMI?

Not as a separate line — if your down payment is under 20%, add your lender's estimated PMI to the insurance field to fold it into the monthly total.

What is PITI?

PITI stands for Principal, Interest, Taxes, and Insurance — the four parts of a typical monthly mortgage payment. This calculator adds all four (plus any HOA fee) so the figure is closer to what actually leaves your account than principal and interest alone.

Is the mortgage calculator free, and is my data private?

Yes to both. It is free with no sign-up, and every calculation runs in your browser, so the home price, down payment, and rate you enter are never uploaded or stored.

Why is so little of my early payment going to principal?

With amortization, each payment is split between interest and principal, and early on the balance is largest, so most of the payment covers interest. As the balance shrinks, more of each equal payment goes toward principal.

Does it work on mobile?

Yes. The calculator is responsive and works in any phone or tablet browser, so you can compare scenarios while house-hunting.