Mortgage Calculator (PITI: principal, interest, tax, insurance)
Enter the home price, down payment, rate, term, and recurring costs to see the realistic monthly housing payment plus the total interest you'll pay.
- Principal & interest
- $2,022.62
- Property tax
- $400.00
- Insurance
- $100.00
- Down payment
- $80,000
- Loan principal
- $320,000
- Total interest over loan
- $408,142
How it works
What 'PITI' means
PITI is the sum of Principal, Interest, Tax, and Insurance — the four standard components of a US mortgage payment. Many borrowers focus only on principal and interest (P&I) and underestimate their actual monthly housing cost by 20-40%. This calculator includes property tax (typically 0.5-2.5% of home value annually), homeowners insurance ($800-$2,500/year), and PMI when applicable.
PMI (private mortgage insurance) kicks in when your down payment is under 20% of the home price. We estimate it at 0.5% of the loan principal per year, which is typical for conventional loans. PMI drops off automatically once you reach 22% equity (or 20% with a request).
Why down payment percentage matters
20% down has been the historical 'no PMI' threshold. With less, you pay PMI (often $100-$300/month for typical loans) until you build enough equity. The PMI cost over a few years can exceed several thousand dollars, so larger down payments save real money.
Larger down also reduces the loan principal, which reduces interest paid over the life of the loan. On a $400k home at 6.5% for 30 years: 20% down means $320k loan and ~$408k total interest. 5% down means $380k loan and ~$485k total interest — $77k extra. Plus PMI.
How to use this calculator
Property tax: look up your county's millage rate or use 1-2% as a national US average. Insurance: ~$1,200/year is typical. HOA: only relevant if you're buying in a community with one. The calculator's PMI estimate is an approximation — your actual rate depends on credit score and loan type.
For more conservative budgeting, run the calculator with a slightly higher rate than today's. Mortgage rates can rise between rate-lock dates; planning for rate volatility is wise. Also consider closing costs (typically 2-5% of the loan amount) which are not modeled here.
Frequently asked questions
›What's the difference between this and a basic loan calculator?
This adds tax, insurance, PMI, and HOA — the real-world costs above just principal and interest. Use loan-calculator for non-housing loans.
›Is the PMI estimate accurate?
Approximate. PMI varies from 0.3% to 1.5% per year depending on credit score, down payment, and loan type. We use 0.5% as a typical mid-range figure.
›Should I take a 15-year or 30-year mortgage?
15-year saves substantial interest but doubles the monthly P&I. 30-year offers flexibility. Choose based on cash flow and other investment options. The calculator shows total interest for each term.
›How do I find my property tax rate?
Search '[your county] property tax rate' or look on your county assessor's website. Typical US rate is 1-2% of home value annually.
›Should I include HOA?
Only if your home has one. HOAs vary from $0 (no HOA) to $1,000+/month for high-amenity buildings.
›Why does my actual mortgage payment differ?
Lenders may include escrow for tax/insurance differently, may bundle PMI into the rate (LPMI), and may charge fees this calculator doesn't model. Always check the lender's official Loan Estimate.
›Does this account for refinancing?
No. Run the calculator with the new rate after refinancing for the updated payment.
›Is the data sent anywhere?
No. Calculation runs locally.
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