Mortgage Payment Calculator
Example: Home price: 400000 $ · Down payment: 20 % · Interest rate (APR): 6.5 % · Loan term: 30 years · Property tax rate: 1.1 % · Home insurance (annual): 1600 $ · PMI rate (if under 20% down): 0.6 %
| Total monthly payment | $2,523 |
| Principal & interest | $2,023 |
| Loan amount | $320,000 |
Worked example
On a $400,000 home with 20% down, you borrow $320,000. At 6.5% over 30 years, principal and interest come to about $2,023 a month. Add property taxes of roughly $367 (1.1% of $400,000, divided by 12) and $133 of insurance, and there is no PMI because you put 20% down. The full monthly payment lands near $2,523 — about $500 a month more than the principal-and-interest figure alone.
Frequently asked questions
What is PITI?
PITI stands for Principal, Interest, Taxes, and Insurance — the four pieces that make up a typical monthly mortgage payment held in escrow. Lenders qualify you on PITI, not just principal and interest, so it is the number to budget around.
When do I have to pay PMI?
Private mortgage insurance is generally required on conventional loans when your down payment is under 20%. It protects the lender, not you, and can usually be removed once you reach about 20% equity. This calculator only adds PMI when your down payment is below 20%.
Does this include HOA fees?
No. Homeowners association dues, if any, are separate and vary widely by property. Add them on top of the figure here when budgeting for a condo or a home in an HOA community.
Why is my property tax an estimate?
Property tax is set locally as a percentage of assessed value and varies by county and even neighborhood. The rate here is a starting point — check your county assessor for the exact millage on the specific home.