Calculate your monthly mortgage payment with principal, interest, taxes, and insurance (PITI). View amortization schedule and total cost.
| Year | Principal | Interest | Balance |
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The monthly mortgage payment is calculated using the standard amortization formula:
M = P × [r(1+r)^n] / [(1+r)^n - 1]
Where:
The total monthly payment (PITI) includes:
A mortgage calculator is an online financial tool that helps you estimate your monthly home loan payment based on the loan amount, interest rate, and repayment period. Whether you are buying your first home or refinancing an existing loan, our home loan calculator gives you a clear picture of your monthly obligations and total interest cost.
Enter three key values: the loan amount (principal), the annual interest rate, and the loan term in years. The calculator instantly shows your monthly payment, total payment over the life of the loan, and total interest paid. You can also see a complete amortization schedule showing how each payment is split between principal and interest.
The monthly mortgage payment formula is: M = P × [r(1+r)^n] / [(1+r)^n - 1], where P is the principal loan amount, r is the monthly interest rate (annual rate divided by 12), and n is the total number of payments. Our calculator applies this formula instantly to give you accurate results.
A fixed-rate mortgage keeps your interest rate the same for the entire loan term, giving you predictable monthly payments. A variable-rate mortgage (ARM) starts with a lower rate that can change over time. Fixed rates are better when interest rates are low and you plan to stay in the home long-term. ARMs may be suitable for short-term homeowners who expect to sell before the rate adjusts.
Make extra principal payments whenever possible to reduce the loan balance and save thousands in interest. Refinance when interest rates drop significantly below your current rate. Avoid PMI by making at least a 20% down payment. Shorter loan terms always result in lower total interest paid, even though monthly payments are higher.
PITI stands for Principal, Interest, Taxes, and Insurance. These are the four components that make up your total monthly mortgage payment. Principal is the amount you borrowed, interest is the cost of borrowing, taxes are property taxes, and insurance includes homeowners insurance and possibly PMI.
PMI (Private Mortgage Insurance) is typically required if your down payment is less than 20% of the home's value. It protects the lender if you default on the loan. PMI usually costs 0.5-1% of the loan amount annually and can be removed once you reach 20% equity.
A 15-year mortgage has higher monthly payments but saves significantly on interest over the life of the loan. A 30-year mortgage offers lower monthly payments but costs more in total interest. Choose based on your budget and financial goals.
Traditional wisdom suggests 20% to avoid PMI, but many loans allow as little as 3-5% down. A larger down payment reduces your monthly payment and total interest, but means less liquidity. Consider your savings, monthly budget, and long-term plans.
An amortization schedule shows how each payment is split between principal and interest over the life of the loan. Early payments are mostly interest, while later payments are mostly principal. This helps you understand how your equity builds over time.
