Calculate your estimated monthly mortgage payment, including principal, interest, property taxes, and homeowner's insurance.
Estimated Monthly Payment
$0.00
Understanding Your Home Loan Payment: Principal, Interest, Taxes, and Insurance (PITI)
When you take out a home loan (mortgage), your monthly payment typically consists of more than just the principal and interest on the loan itself. Lenders often require you to pay for property taxes and homeowner's insurance as part of your monthly payment. This combined amount is commonly referred to as PITI:
Principal: The amount you borrowed to buy the home. Each monthly payment reduces your outstanding loan balance.
Interest: The cost of borrowing the money. A larger portion of your early payments goes towards interest.
Taxes: Your annual property taxes, divided by 12. These are paid to your local government.
Insurance: Your annual homeowner's insurance premium, divided by 12. This protects you and the lender against damage or loss.
Some homeowners may also have Homeowner Association (HOA) fees, which cover the maintenance of common areas in certain communities. While not always included in the lender's escrow payment, they are a crucial part of your overall monthly housing expense.
How the Calculator Works
This calculator first determines the Principal and Interest (P&I) portion of your monthly payment using the standard mortgage payment formula:
M = P [ i(1 + i)^n ] / [ (1 + i)^n – 1]
Where:
M = Your total monthly mortgage payment (P&I only)
P = The principal loan amount
i = Your monthly interest rate (annual rate divided by 12)
n = The total number of payments over the loan's lifetime (loan term in years multiplied by 12)
Once the P&I is calculated, the calculator adds the monthly breakdown of your property taxes, homeowner's insurance, and any optional HOA fees to arrive at the total estimated monthly housing cost.
Example Calculation:
Let's say you're looking at a loan of $300,000 with an annual interest rate of 5.5% over 30 years. Your estimated annual property tax is $3,600, and annual homeowner's insurance is $1,200. You also have $150 in monthly HOA fees.
This calculator provides an estimate to help you budget for homeownership. It's essential to consult with a mortgage professional for precise figures based on your specific loan and property details.
function calculateMortgage() {
var loanAmount = parseFloat(document.getElementById("loanAmount").value);
var annualInterestRate = parseFloat(document.getElementById("annualInterestRate").value);
var loanTerm = parseFloat(document.getElementById("loanTerm").value);
var annualPropertyTax = parseFloat(document.getElementById("annualPropertyTax").value);
var annualHomeInsurance = parseFloat(document.getElementById("annualHomeInsurance").value);
var hoaFees = parseFloat(document.getElementById("hoaFees").value);
var monthlyPayment = 0;
var pniPayment = 0;
// Validate inputs
if (isNaN(loanAmount) || isNaN(annualInterestRate) || isNaN(loanTerm) ||
isNaN(annualPropertyTax) || isNaN(annualHomeInsurance) || isNaN(hoaFees)) {
document.getElementById("monthlyPayment").innerText = "Please enter valid numbers.";
return;
}
if (loanAmount <= 0 || annualInterestRate < 0 || loanTerm <= 0 || annualPropertyTax < 0 || annualHomeInsurance < 0 || hoaFees 0) {
var monthlyInterestRate = (annualInterestRate / 100) / 12;
var numberOfPayments = loanTerm * 12;
var numerator = monthlyInterestRate * Math.pow(1 + monthlyInterestRate, numberOfPayments);
var denominator = Math.pow(1 + monthlyInterestRate, numberOfPayments) – 1;
if (denominator === 0) { // Avoid division by zero if rate is extremely low or term is 0 (handled above)
pniPayment = loanAmount / numberOfPayments; // Simple division if denominator is 0
} else {
pniPayment = loanAmount * (numerator / denominator);
}
} else { // If interest rate is 0
var numberOfPayments = loanTerm * 12;
if (numberOfPayments > 0) {
pniPayment = loanAmount / numberOfPayments;
} else {
pniPayment = loanAmount; // If term is 0, payment is the full amount
}
}
// Calculate monthly taxes and insurance
var monthlyTaxes = annualPropertyTax / 12;
var monthlyInsurance = annualHomeInsurance / 12;
// Total monthly payment
monthlyPayment = pniPayment + monthlyTaxes + monthlyInsurance + hoaFees;
// Display the result
document.getElementById("monthlyPayment").innerText = "$" + monthlyPayment.toFixed(2);
}