Mortgage Payment Calculator (PITI)
Use this comprehensive mortgage calculator to estimate your total monthly home payment, including principal, interest, taxes, and insurance.
Understanding Your PITI Mortgage Payment
When shopping for a home, many buyers focus solely on the principal and interest of their loan. However, the true cost of homeownership is often reflected in a figure known as PITI: Principal, Interest, Taxes, and Insurance. Our calculator breaks down these costs to give you a realistic view of your monthly financial obligation.
1. Principal and Interest
This is the core of your mortgage payment. The Principal pays down the balance of the money you borrowed, while the Interest is the cost paid to the lender for the privilege of borrowing that money. Early in your loan term (like a standard 30-year fixed mortgage), a larger portion of this payment goes toward interest. As time passes, more of the payment is applied to the principal balance.
2. Property Taxes
Local governments collect property taxes to fund schools, police forces, and infrastructure. These taxes are calculated annually based on your home's assessed value. Lenders often collect a portion of this bill every month and hold it in an escrow account to pay the tax bill when it is due. It is crucial to input an accurate annual tax estimate to see how it impacts your monthly cash flow.
3. Homeowners Insurance & HOA
Lenders require homeowners insurance to protect the asset against fire, theft, and disasters. Like taxes, this is often paid monthly into escrow. Additionally, if your property is in a managed community, you may have Homeowners Association (HOA) fees. While HOA fees are usually paid directly to the association and not the lender, they are a critical part of your monthly housing budget and are included in this calculator.
How to Use This Calculator
To get the most accurate result, check current interest rates and look up the property tax rate for the county where you are buying. Even a difference of 0.5% in interest rate or a few hundred dollars in taxes can significantly alter your monthly payment and overall buying power.