Mortgage Calculator
Inputs
Results update liveInterpretation
How Mortgage Calculation works
The Mortgage Calculator estimates regular principal and interest for a fixed-rate mortgage, then adds the property-tax rate and the monthly insurance, HOA, and optional PMI estimates you enter. It does not determine lender fees, PMI eligibility, an exact PMI premium, or when PMI may be removed.
Example
Key features
A realistic scenario showing how the calculation guides a practical decision.
Formula
Monthly P&I = P × [r(1 + r)^n] / [(1 + r)^n − 1], where P is loan amount, r is monthly interest rate, and n is the number of payments.
- Fixed-rate principal-and-interest payment estimate
- Property tax, insurance, HOA, and user-entered PMI estimates
- First-year and final-payment amortization view
- Clear exclusions for lender-specific costs and PMI rules
Watch out
Common mistakes
- Check each lender estimate for origination charges, escrow requirements, and PMI terms. Those details can materially change the cash needed at closing and the monthly payment.
Related tools
Adjacent decisions
FAQ
Frequently asked questions
How the calculation works and where its limits are.
What is included in a complete PITI mortgage payment?
A complete PITI payment includes Principal (repaying the loan balance), Interest (the lender's finance charge), Property Taxes (local municipal levies), and Homeowners Insurance (hazard coverage), plus optional HOA dues and Private Mortgage Insurance (PMI) if down payment is under 20%.
How does my down payment percentage affect Private Mortgage Insurance (PMI)?
Conventional loans with less than 20% down payment typically require PMI, which costs roughly 0.3% to 1.5% of the loan amount annually. Once you build 20% equity (80% Loan-to-Value), you can request PMI cancellation under the Homeowners Protection Act.
How is the fixed-rate monthly principal and interest payment calculated?
Fixed monthly principal and interest uses the standard amortization formula: M = P[r(1+r)^n] / [(1+r)^n - 1], where P is loan principal, r is the monthly interest rate (annual rate / 12), and n is total monthly payments (e.g. 360 for 30 years).
Is this mortgage calculation a formal loan estimate or commitment to lend?
No. This calculator provides deterministic planning estimates based on your entered parameters and standard CFPB formula definitions. Actual lender quotes require credit underwriting, property appraisal, and a formal Loan Estimate disclosure.
What should I do after estimating my monthly mortgage payment?
Compare your total housing expense against your gross monthly income using our Debt-to-Income (DTI) Calculator to ensure housing costs stay below 28% and total monthly debt stays below 36% to 43% for qualified mortgage approval.