Reviewed by CalcFi Editorial · Verified against Freddie Mac PMMS
Reviewed by CalcFi Editorial · Verified against Freddie Mac PMMS
Calculate your monthly mortgage payment including principal, interest, taxes and insurance.
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Household
Model your numbers solo or as a couple. Saved as one household decision either way.
Let’s find your exact monthly mortgage payment. Start by entering your home price.
Includes , interest, property tax, insurance, and — the full PITI number most calculators don't show by default. Property tax and insurance are usually paid through an account.
e.g., $350,000
e.g., $70,000 · 20.0% down
e.g., 6.5%
e.g., 30 years
e.g., $4,200
e.g., $1,200
Used for household DTI framing
Sarah, 32, elementary school teacher earning $62,000/yr, has $55,000 saved. She's buying a $310,000 home in Westerville (Franklin County). She puts 10% down and keeps $24,000 for closing costs and a 3-month reserve.
Takeaway: At $2,607/mo vs $62k gross income, her DTI is ~50% — above the 43% Qualified Mortgage ceiling (12 CFR §1026.43). She needs a co-borrower or a cheaper home. Saving to 20% down removes PMI (~$198/mo) and brings PITI to ~$2,409, cutting DTI to 46%.
This calc assumes a fixed rate for the full loan term. Adjustable-rate mortgages (5/1, 7/1, 10/1 ARMs) reset at defined intervals using an index (SOFR or Treasury) plus a margin. After the first reset on a $400k balance, a 2% rate increase adds ~$485/month and compounds over the remaining term.
For loans above 80% LTV, PMI appears in the payment but drops off. Under the Homeowners Protection Act (§4902), lenders must auto-terminate PMI at 78% LTV based on the original amortization schedule. You can request cancellation at 80% with a certified appraisal — potentially years earlier on a fast-appreciating home.
PMI Removal CalculatorWe apply a state-average effective tax rate. County and municipality millage rates differ by 40%+ within a state. A $400k home in Cuyahoga County OH pays ~$7,500/yr in property tax; the same value in Delaware County OH pays ~$5,100/yr — a $200/month swing in escrow.
Property Tax EstimatorStandard amortization formulas do not model interest-only periods or balloon maturities. A 10-year interest-only jumbo at 7% on $800k costs $4,667/month for 10 years, then resets to a fully amortizing $800k balance over the remaining 20 years — payment jumps to ~$6,200.
HOA dues and special assessment reserves are not included in the monthly output. In high-rise condos these routinely run $500–$1,500/month and are just as binding as the P&I payment for affordability purposes.
Lenders re-analyze escrow annually. A mid-year property tax increase or insurance premium jump can raise your escrow payment 5–15% with 30-day notice, moving your effective monthly cost above what this calc shows at origination.
Based on your inputs
Your monthly payment is $2,576. Of the P&I ($2,076/mo), most goes to interest in year 1 and gradually shifts to principal — by year 15 you'll be ~50/50.
P&I: $2,076/mo
| Year | Principal paid | Interest paid | Remaining balance |
|---|---|---|---|
| Yr 1 | $3,410 | $21,496 | $316,590 |
| Yr 2 | $3,648 | $21,258 | $312,942 |
| Yr 3 | $3,902 | $21,004 | $309,040 |
| Yr 4 | $4,174 | $20,733 | $304,866 |
| Yr 5 | $4,464 | $20,442 | $300,402 |
| Yr 6 | $4,775 | $20,131 | $295,627 |
| Yr 7 | $5,107 | $19,799 | $290,520 |
| Yr 8 | $5,463 | $19,443 | $285,057 |
| Yr 9 | $5,843 | $19,063 | $279,213 |
| Yr 10 | $6,250 | $18,656 | $272,963 |
| Yr 11 | $6,685 | $18,221 | $266,278 |
| Yr 12 | $7,151 | $17,755 | $259,127 |
| Yr 13 | $7,649 | $17,257 | $251,478 |
| Yr 14 | $8,181 | $16,725 | $243,296 |
| Yr 15 | $8,751 | $16,155 | $234,545 |
| Yr 16 | $9,360 | $15,546 | $225,185 |
| Yr 17 | $10,012 | $14,894 | $215,173 |
| Yr 18 | $10,709 | $14,197 | $204,463 |
| Yr 19 | $11,455 | $13,451 | $193,008 |
| Yr 20 | $12,253 | $12,654 | $180,756 |
| Yr 21 | $13,106 | $11,800 | $167,650 |
| Yr 22 | $14,018 | $10,888 | $153,632 |
| Yr 23 | $14,994 | $9,912 | $138,638 |
| Yr 24 | $16,038 | $8,868 | $122,600 |
| Yr 25 | $17,155 | $7,751 | $105,445 |
| Yr 26 | $18,349 | $6,557 | $87,095 |
| Yr 27 | $19,627 | $5,279 | $67,468 |
| Yr 28 | $20,994 | $3,912 | $46,474 |
| Yr 29 | $22,455 | $2,451 | $24,019 |
| Yr 30 | $24,019 | $887 | $0 |
| Home Price | $400,000 |
|---|---|
| Down Payment | $80,000 (20.0%) |
| Loan Amount | $320,000 |
| Monthly P&I | $2,076 |
| Monthly Taxes + Insurance | $500 |
| Total Monthly Payment | $2,576 |
| Total Interest Paid | $427,185 |
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PITI is your complete monthly mortgage payment. Lenders coined this term to clarify that"your mortgage payment" isn't just principal and interest—it includes property taxes and insurance, which are legally required (by you, the homeowner) and often required (by the lender, as part of the loan agreement).
P = Principal: The amount borrowed that you're paying back each month. With each payment, more goes to principal, less to interest. Early payments are mostly interest; later payments are mostly principal.
I = Interest: The lender's cost for lending you the money. At 7% on a $300K loan, the first month's interest is ~$1,750. This decreases as principal decreases.
T = Taxes: Property taxes assessed by your county/municipality. The lender requires you to maintain a tax escrow account—they hold money monthly ($200-500) and pay your annual taxes for you.
I = Insurance: Homeowners insurance (required by lender to protect the property). Lenders also escrow this, typically $100-200/month.
Home price: $400,000. Down payment: 20% ($80K). Loan: $320,000 at 6.5%, 30-year. Property tax: 1.2%/year. Insurance: $150/month. Monthly P&I: $2,023. Monthly property tax (escrowed): $400. Monthly insurance (escrowed): $150. Total PITI: $2,573.
Notice: P&I is 78% of your payment. Taxes + Insurance are 22%. On a $2,500/month mortgage payment, you're only paying down the loan by $1,650/month. The rest ($850) is interest, taxes, and insurance.
Your lender doesn't trust you to pay taxes and insurance separately. Instead, they escrow these payments, holding them in a separate account. Here's how it works: You send the lender $2,573/month PITI. The lender splits it: $2,023 toward principal/interest (goes to investor/bank), $400 to property tax escrow, $150 to insurance escrow. When property taxes are due ($4,800/year), the lender pays them from your escrow account. When insurance renews ($1,800/year), the lender pays from escrow.
Problem: If taxes or insurance increase, your escrow cushion decreases. Lenders require a 1-2 month cushion. If your escrow balance drops below this threshold, your monthly PITI payment increases to rebuild the cushion. Example: Your county increases property tax 15%, adding $720/year to escrow costs. Your lender increases your monthly PITI payment by $60 to rebuild cushion.
Here's what surprises most borrowers: In year 1 of a 30-year mortgage, 75-80% of your P&I payment goes to interest, only 20-25% to principal. By year 15, it's roughly 50/50. By year 28, it's mostly principal.
Example: $300K loan at 7%, 30-year. Monthly P&I = $1,996. Year 1 Payment #1: Interest = $1,750, Principal = $246. Year 15 Payment #180: Interest = $1,000, Principal = $996. Year 29 Payment #348: Interest = $33, Principal = $1,963.
This is why extra principal payments early are so powerful. An extra $100/month in year 1 saves ~$50,000 in interest over 30 years—because that $100 stops 29 years of interest from accruing.
Property taxes are the most volatile PITI component. They vary wildly by location and often increase suddenly after purchase. Annual property tax rates: New Jersey (1.57%), Illinois (0.85%), Texas (0.60%), Florida (0.75%), Hawaii (0.28%). On a $400K home, that's $6,280/year in New Jersey vs. $1,120/year in Hawaii—a $5,160/year difference.
Worse: Many states reassess property values after purchase. If the previous owner had a grandfathered-in assessment (like California's Prop 13), your assessment jumps post-purchase. Expect property tax to potentially increase 10-30% when you buy in many states.
Homeowners insurance has been increasing aggressively (10-20%/year in some states). Factors: Climate change increasing wildfire/hurricane risk. Inflation raising replacement costs. Reinsurance costs rising. Your location impacts insurance dramatically. Suburban home, 2010s vintage, no claims: $140/month. High-risk wildfire zone: $400+/month. Flood zone: $350+/month.
Tip: Lock in insurance quotes before making an offer. Some homes are insurance-prohibitive.
You can deduct interest and property taxes from federal income taxes—but only if you itemize deductions (not take the standard deduction). Standard deduction (2024): $13,850 (single), $27,700 (married). On a $400K home with $2,000/month mortgage and $400/month property tax, your interest + tax deductions total ~$30,000+, making itemizing worthwhile. Consult a tax advisor to see if itemizing makes sense for your situation.
Property taxes and insurance can increase. Lenders recalculate escrow annually to ensure sufficient cushion. If taxes rise, your PITI payment increases.
Some lenders allow you to opt out of escrow if you have excellent credit and substantial equity. But most require it. Many borrowers prefer it—it forces saving for taxes/insurance.
You have options: Shop insurance annually (rates vary by carrier). Appeal property tax assessment if overvalued. In some states, cap property tax increases (California). Move to lower-tax state (long-term option). Accept higher PITI.
This is the biggest barrier to 15-year mortgages: the payment is painful. Example at $300K loan, rates 6.5% (15-year) vs 7% (30-year): 30-year P&I: $1,996/month. 15-year P&I: $2,922/month. Difference: $926/month ($11,112/year). That's a $11K/year lifestyle reduction for 15 years. Not everyone can swing it.
Over the life of the loans: 30-year total interest paid: ~$420,000. 15-year total interest paid: ~$155,000. Interest savings: $265,000. That's massive. But you had to afford $926/month extra for 15 years to get there. If that $926/month prevents you from saving for retirement, emergency fund, or investing elsewhere, you might lose the benefit.
You earn stable, high income ($150K+) and can afford both mortgage + retirement savings. You want to be mortgage-free by age 60-65. You have an emergency fund (6 months expenses) and don't need the monthly cash flexibility. You're paying off other debt first—no car loans, minimal credit card balance. You expect your income to stay stable or increase.
Your income is variable (commission, self-employed, bonus-heavy). You have other financial priorities: kids' college, starting business, early retirement. You're younger and want flexibility—might relocate or change jobs. Your cash flow is tight. You'd rather invest extra money in stock market (historically 7-10% returns) than lock into mortgage principal payments.
Most people take out 30-year mortgages but make extra principal payments when able. This gives you the flexibility of a 30-year payment with the interest savings of a shorter term. Example: 30-year mortgage, but pay an extra $500/month in principal when cash allows. In good months (bonus, commission), you pay more. In tight months, you pay normal amount. Over 15 years of extra payments, you could match a 15-year payoff without the rigidity.
Lenders incentivize shorter terms with lower rates. 30-year rates are typically 0.5-0.75% higher than 15-year rates. At $300K: 30-year at 7% = $1,996/month. 30-year at 6.25% = $1,862/month. That $134/month savings compounds. The point: don't just compare $1,996 vs. $2,922. Compare at equal rates. A 15-year at 6.5% vs. 30-year at 6.5%. Then the pure difference is monthly payment vs. interest savings.
You could also start with a 30-year mortgage (lower payment) and refinance to a 15-year later if circumstances improve (raise, bonus, wealth inheritance). Refinance costs ~$3,000-$5,000 in fees, so only worthwhile if break-even is within 3-5 years. But it's a viable path.
Interest is tax-deductible (if itemizing). On a 30-year, you pay more interest, so higher deduction. On a 15-year, you pay less interest, so lower deduction. This is a small factor but worth noting. A 30-year at 7% on $300K generates ~$20K/year in interest deductions early on. 15-year generates ~$14,500/year.
No. Once you lock a rate and term, you can't change it without refinancing (which resets the term clock and costs fees).
You're stuck with the higher payment. You can't reduce it without refinancing (and you'd lose the 15-year term). This is why flexibility matters.
No universal answer. Depends on your income stability, cash flow needs, investment returns, and psychological comfort. Run scenarios with our mortgage payment calculator to compare.
Only if: You can't get higher returns investing elsewhere. You're psychologically bothered by debt. You're nearing retirement and want to reduce monthly obligations. Otherwise, a 3-4% mortgage is historically cheaper than stock market returns.
When you put down less than 20%, lenders require PMI to protect themselves. You pay for insurance that protects the lender—not you. It costs 0.5-1.5% of loan annually ($100-200/month on $270K loan). It doesn't build equity, doesn't reduce your principal, doesn't help you at all. It's pure cost until removed.
Federal law requires lenders to remove PMI once you reach 78% LTV (Loan-To-Value). LTV = Loan Amount / Current Home Value. Example: Original $300K home, 10% down ($30K), $270K loan. LTV = $270K / $300K = 90%. You may want to get to 78%, which means: $270K × 78% = $210.6K remaining loan, or $59.4K paid down + home appreciation.
Problem: Without home appreciation or extra payments, this takes 15+ years of normal payments.
If your home appreciates 3-4%/year (historical average), LTV decreases automatically without you doing anything. Example: $300K home, appreciates 4%/year. Year 1: $312K. Year 2: $324.5K. Year 3: $337.5K. Your LTV drops as home value climbs, even though loan balance decreases slowly. At year 7, home value is ~$395K. Your loan is ~$245K. LTV is 62%. PMI removed automatically (by law at 78%, often earlier).
This is why housing appreciation is so powerful. You benefit from leverage—the home appreciates, your equity increases faster than payments.
Pay extra toward principal to accelerate removal. $300K home, 10% down, $270K loan at 7%, 30-year. Normal monthly P&I: $1,796. Add $300/month extra principal (total payment $2,096). Simulation: Normal payoff reaches 78% LTV in year 8 after ~$37K paid toward principal. With extra payments, reach 78% LTV in year 4 after ~$40K paid toward principal. Save 4 years of PMI ($6K-$9.6K depending on rate).
Request"principal curtailment" (extra payment) from your lender. Some charge fees—ask before committing. Most major lenders allow free principal payments.
If interest rates drop AND you've paid down to 80%+ LTV, refinance to a new loan at the lower rate without PMI. Example: Original: $300K home, 10% down, 7% rate, $270K loan. After 5 years: Paid principal down to $245K. Home appreciated to $330K. LTV = $245K / $330K = 74%. New refinance: 6% rate, no PMI needed, reset to 30-year.
Break-even calculation: Refinance costs ~$5,000. New rate saves ~$150/month. Payback = 33 months. Only worthwhile if you're staying 3+ more years.
If you believe your home is worth more than the original appraisal (e.g., neighborhood appreciated faster or you made major improvements), hire a new appraisal (~$500-800). If new appraisal is higher, LTV drops. Example: Home originally appraised at $300K, now appraised at $340K. LTV improvement removes PMI faster. Downside: Costs money upfront. Only do if confident in higher value.
No. Federal law requires removal at 78-80% LTV. But some older loans have different rules—check your note.
LTV increases. PMI removal gets delayed or becomes impossible (underwater mortgage). You're stuck with PMI until: Home appreciates back up, you pay principal down aggressively, you refinance at lower rate with larger down payment.
As of 2024, mortgage insurance premiums are tax-deductible if your AGI is below $109,000 (single) or $218,000 (married), but this is subject to annual expiration (Congress votes to extend). Check current tax rules.
At 7% APR, 30-year, 20% down ($60K): $1,596/month principal+interest. Add taxes ($250), insurance ($100), PMI (none with 20% down) = ~$1,946/month total.
PITI = Principal + Interest + Taxes + Insurance. This is your actual monthly payment. Many lenders escrow taxes and insurance into your payment automatically.
Private Mortgage Insurance is required when down payment is less than 20% on conventional loans. Typically 0.5-1.5% of loan annually. Removed when LTV hits 80%.
15-year: lower rate (6% vs 7%), faster payoff, far less interest. 30-year: lower payment, more flexibility. If you can afford 15-year payment, it's usually better.
On a $300K loan: 6% = $1,799/month vs 7% = $1,996/month. That's $197/month difference = $70,920 over 30 years. Interest rate matters enormously.
Each monthly payment splits between interest and principal. Interest equals the remaining balance times the monthly rate. The rest goes to principal. Early payments are mostly interest, shifting gradually to mostly principal over the loan term.
PITI stands for Principal, Interest, Taxes, and Insurance. These four components make up your total monthly housing payment. Property taxes and homeowners insurance are often escrowed by your lender and included in the monthly bill.
Private mortgage insurance costs 0.5-1.5% of the loan amount annually. On a $300,000 loan, PMI adds $125-$375 per month. PMI is required when your down payment is less than 20% and can be removed once you reach 20% equity.
Fixed-rate mortgages keep the same interest rate for the entire loan term. Adjustable-rate mortgages start with a lower rate that changes after an initial period. ARMs carry rate risk but can save money if you plan to sell within 5-7 years.
One extra payment annually on a $300,000 30-year mortgage at 7% saves approximately $72,000 in interest and pays off the loan 5-6 years early. This equals making bi-weekly half-payments instead of monthly full payments.
Monthly P&I = L × [r(1+r)^n] / [(1+r)^n - 1]
Where L = loan amount, r = monthly rate, n = total payments. Add property taxes ÷ 12, homeowners insurance ÷ 12, and if applicable. The schedule below is the loan's : each payment is split between and interest, and the split shifts toward principal over time.
Every formula on this page traces to a federal agency, central bank, or peer-reviewed institution. We cite the rule-makers, not secondhand blogs.
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State-specific rates, taxes, and cost-of-living adjustments
Calculations are for educational purposes only. Consult a qualified financial advisor for personalized advice.
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