Mortgage Payment Calculator
Calculate your monthly mortgage payment including principal, interest, taxes, and insurance. This calculator provides a quick estimate for any home price, down payment, and loan term. For a full amortization schedule, use our mortgage calculator or check your home loan eligibility.
How to Calculate Mortgage Payment
- Subtract your down payment from the home price to determine the loan amount.
- Convert the annual interest rate to a monthly rate (divide by 12).
- Determine the total number of payments (years multiplied by 12).
- Apply the mortgage payment formula to calculate monthly principal and interest.
- Add monthly property tax and insurance for the total monthly payment (PITI).
Formula
Monthly P&I = L x [r(1+r)^n] / [(1+r)^n - 1]
Where:
L = Loan amount (Home Price - Down Payment)
r = Monthly interest rate (annual rate / 12 / 100)
n = Total number of payments (years x 12)
Monthly PITI = Monthly P&I + (Annual Tax / 12) + (Annual Insurance / 12)Example
Calculate the monthly payment for a $350,000 home with 20% down at 6.75% for 30 years:
Home Price = $350,000
Down Payment = 20% = $70,000
Loan Amount = $350,000 - $70,000 = $280,000
r = 6.75% / 12 = 0.5625% = 0.005625
n = 30 x 12 = 360
Monthly P&I = $280,000 x [0.005625(1.005625)^360] / [(1.005625)^360 - 1]
Monthly P&I = $280,000 x [0.005625 x 7.5016] / [7.5016 - 1]
Monthly P&I = $1,815.67
Add taxes ($3,500/yr) and insurance ($1,200/yr):
Monthly PITI = $1,815.67 + $291.67 + $100.00 = $2,207.34
Total Interest over 30 years = ($1,815.67 x 360) - $280,000 = $373,641Mortgage Payment Reference Table
| Loan Amount | 15 yr @ 6% | 20 yr @ 6.5% | 30 yr @ 7% |
|---|---|---|---|
| $150k | $1266 | $1118 | $998 |
| $200k | $1688 | $1491 | $1331 |
| $250k | $2110 | $1864 | $1663 |
| $300k | $2532 | $2237 | $1996 |
| $350k | $2953 | $2610 | $2329 |
| $400k | $3375 | $2982 | $2661 |
| $500k | $4219 | $3728 | $3327 |
| $600k | $5063 | $4473 | $3992 |
Frequently Asked Questions
What is PITI?
PITI stands for Principal, Interest, Taxes, and Insurance. It represents your total monthly housing payment. Lenders use PITI to determine affordability, typically requiring it to be no more than 28% of your gross monthly income.
How much should I put down on a house?
Conventional loans typically require 5-20% down. Putting 20% or more avoids Private Mortgage Insurance (PMI), which adds 0.5-1% of the loan annually. FHA loans allow as little as 3.5% down.
Is a 15-year or 30-year mortgage better?
A 15-year mortgage has higher monthly payments but saves significantly on interest (often 50-60% less total interest). A 30-year mortgage offers lower payments and more flexibility. Choose based on your budget and financial goals.
What is PMI and when is it required?
Private Mortgage Insurance (PMI) is required when your down payment is less than 20% of the home price. It typically costs 0.5-1% of the loan amount annually and can be removed once you reach 20% equity.
How much house can I afford?
A common guideline is the 28/36 rule: spend no more than 28% of gross income on housing (PITI) and no more than 36% on total debt. For a $6,000 monthly income, that means a maximum PITI of $1,680.