Estimate your monthly payments including taxes and insurance
$
$
%
yrs
$
$
$
Total Monthly Payment
$0.00
Principal & Interest
$0.00
Property Taxes
$0.00
Homeowners Insurance
$0.00
HOA Fees
$0.00
Understanding Your Mortgage Payment Breakdown
Buying a home is one of the most significant financial decisions you will make. When calculating affordability, it is crucial to look beyond just the listing price and consider the monthly recurring costs. Our Mortgage Payment Calculator helps you estimate the "PITI" of your loan—Principal, Interest, Taxes, and Insurance.
What is Included in Your Monthly Payment?
While the bank requires you to pay back the loan with interest, your monthly bill usually includes escrow items as well. Here is a breakdown of the components:
PITI Explained:
Principal: The portion of your payment that reduces the loan balance.
Interest: The fee charged by the lender for using their money.
Taxes: Property taxes charged by your local government, usually paid annually but collected monthly.
Insurance: Hazardous insurance to protect the property, also often collected monthly.
How the Mortgage Formula Works
The core of the calculation determines your Principal and Interest (P&I) using the standard amortization formula:
M = P [ i(1 + i)^n ] / [ (1 + i)^n – 1 ]
M = Total monthly payment
P = Principal loan amount (Home Price minus Down Payment)
i = Monthly interest rate (Annual Rate divided by 12)
n = Total number of payments (Years multiplied by 12)
Why Include HOA and Taxes?
Many online calculators only show the principal and interest. However, property taxes and insurance can add hundreds of dollars to your monthly obligation. Additionally, if you are buying a condo or a home in a planned community, Homeowners Association (HOA) fees are mandatory and can significantly impact your debt-to-income ratio.
Tips for Lowering Your Payment
If the estimated payment is higher than your budget allows, consider the following strategies:
Increase your down payment: This reduces the principal loan amount and may eliminate Private Mortgage Insurance (PMI).
Shop for a lower interest rate: Even a 0.5% difference can save thousands over the life of the loan.
Extend the loan term: Moving from a 15-year to a 30-year term lowers monthly payments, though you will pay more interest in the long run.
function calculateMortgage() {
// 1. Get Input Values
var homePriceInput = document.getElementById('homePrice');
var downPaymentInput = document.getElementById('downPayment');
var interestRateInput = document.getElementById('interestRate');
var loanTermInput = document.getElementById('loanTerm');
var propertyTaxInput = document.getElementById('propertyTax');
var homeInsuranceInput = document.getElementById('homeInsurance');
var hoaFeesInput = document.getElementById('hoaFees');
// Parse floats
var homePrice = parseFloat(homePriceInput.value) || 0;
var downPayment = parseFloat(downPaymentInput.value) || 0;
var annualRate = parseFloat(interestRateInput.value) || 0;
var years = parseFloat(loanTermInput.value) || 0;
var annualTax = parseFloat(propertyTaxInput.value) || 0;
var annualInsurance = parseFloat(homeInsuranceInput.value) || 0;
var monthlyHOA = parseFloat(hoaFeesInput.value) || 0;
// 2. Logic Validation
if (homePrice <= 0 || years <= 0) {
alert("Please enter a valid Home Price and Loan Term.");
return;
}
// 3. Calculate Principal Loan Amount
var principal = homePrice – downPayment;
if (principal 0) {
monthlyPI = principal / totalMonths;
}
} else {
// Amortization Formula
var monthlyRate = (annualRate / 100) / 12;
var numberOfPayments = years * 12;
// Formula: M = P * (r(1+r)^n) / ((1+r)^n – 1)
var numerator = monthlyRate * Math.pow((1 + monthlyRate), numberOfPayments);
var denominator = Math.pow((1 + monthlyRate), numberOfPayments) – 1;
if (denominator !== 0) {
monthlyPI = principal * (numerator / denominator);
}
}
// 5. Calculate Other Monthly Components
var monthlyTax = annualTax / 12;
var monthlyInsurance = annualInsurance / 12;
// 6. Calculate Total Monthly Payment
var totalMonthly = monthlyPI + monthlyTax + monthlyInsurance + monthlyHOA;
// 7. Update UI
// Helper for formatting currency
var formatter = new Intl.NumberFormat('en-US', {
style: 'currency',
currency: 'USD',
minimumFractionDigits: 2
});
document.getElementById('piDisplay').innerText = formatter.format(monthlyPI);
document.getElementById('taxDisplay').innerText = formatter.format(monthlyTax);
document.getElementById('insDisplay').innerText = formatter.format(monthlyInsurance);
document.getElementById('hoaDisplay').innerText = formatter.format(monthlyHOA);
document.getElementById('totalMonthlyDisplay').innerText = formatter.format(totalMonthly);
// Show results area
document.getElementById('resultsArea').style.display = 'block';
}