Mortgage Calculator
Calculate monthly PITI payment with amortization schedule.
This calculator shows your full monthly mortgage payment — principal, interest, property tax, insurance, and PMI — plus a year-by-year amortization schedule so you can see exactly how your loan is paid off.
Understanding Your Mortgage Payment
What is PITI?
PITI stands for Principal, Interest, Taxes, and Insurance — the four components of a typical monthly mortgage payment. Principal reduces your loan balance, interest is the lender's fee, property tax is collected monthly and paid to your local government, and homeowners insurance protects your property. Lenders often require all four to be bundled into a single monthly payment held in escrow.
When is PMI required?
Private Mortgage Insurance (PMI) is required when your down payment is less than 20% of the home price. It protects the lender — not you — in case of default. PMI typically costs 0.5% to 1.5% of the loan amount per year and can be removed once your equity reaches 20%. On a 400,000 USD home with 10% down and a 0.9% PMI rate, that is about 270 USD per month.
15-year vs 30-year mortgage
A 30-year loan has lower monthly payments but you pay far more interest over time. A 15-year loan typically has a lower rate and you pay off the house twice as fast, but monthly payments are significantly higher. For example, a 360,000 USD loan at 7% costs about 2,395 USD/mo over 30 years and about 3,231 USD/mo over 15 years — but the 15-year loan saves roughly 200,000 USD in total interest. This calculator is for educational purposes; consult a licensed mortgage professional for advice specific to your situation.
PMT = P × [r(1+r)^n] / [(1+r)^n − 1] + PMI + tax/12 + insurance/12 Frequently Asked Questions
What does PITI mean in a mortgage payment?
PITI stands for Principal, Interest, Taxes, and Insurance. It is the total monthly amount you pay to your lender, which typically includes your loan repayment, interest charges, a share of your annual property tax, and homeowners insurance.
How much do I need for a down payment to avoid PMI?
You need at least 20% of the home's purchase price as a down payment to avoid PMI. For a 400,000 USD home that means 80,000 USD down. If you put down less, PMI is added to your monthly payment until your equity reaches 20%.
Is a 30-year or 15-year mortgage better?
It depends on your budget. A 30-year mortgage has lower monthly payments and more cash flow flexibility, but you pay significantly more interest over the life of the loan. A 15-year mortgage costs more each month but builds equity faster and saves tens of thousands of dollars in interest.
Does making extra monthly payments really make a difference?
Yes, significantly. Even an extra 200 USD per month on a 30-year, 360,000 USD loan at 7% can cut years off the loan and save tens of thousands in interest. This calculator shows you exactly how your payoff timeline changes with extra payments.
What is a typical property tax rate in the US?
Property tax rates vary widely by state and county, but the national average is around 1.0% to 1.2% of the home's assessed value per year. States like New Jersey and Illinois are much higher (around 2%), while Hawaii and Alabama are among the lowest (under 0.5%).
What is the formula for calculating a mortgage payment?
The principal and interest portion is calculated as: PMT = P × [r(1+r)^n] / [(1+r)^n − 1], where P is the loan amount, r is the monthly interest rate (annual rate divided by 12), and n is the total number of monthly payments. PMI, property tax, and insurance are then added to get the full PITI payment.