Mortgage Payment Calculator
Principal, interest, tax and insurance in one monthly figure.
Reviewed by the Calculation Machine team · Updated 24 October 2026 · How we check our maths
Your values
ⓘ Live results
- Total monthly payment
- $2,547.62
- Principal & interest
- $2,022.62
- Taxes & insurance
- $525.00
- Loan amount
- $320,000.00
- Total interest over term
- $408,142.36
Quick answer
A monthly mortgage payment, or PITI, is principal and interest from the amortization formula P × r ÷ (1 − (1 + r)⁻ⁿ), plus one-twelfth of the yearly property tax and homeowners insurance. A $400,000 home with $80,000 down at 6.5% over 30 years has principal and interest of $2,022.62; adding $4,800 tax and $1,500 insurance brings the total to $2,547.62 a month.
What the Mortgage Payment calculator does
This calculator turns a home price, down payment, rate and term into the monthly figure you will actually pay: principal and interest plus the property tax and insurance that most lenders collect through an escrow account. It also shows the loan amount and the total interest over the life of the loan.
Use it when house hunting to see what a listing really costs each month, or to compare a 15-year and 30-year loan. Pair it with a house affordability calculator to check the payment against your income.
Two costs are not included: private mortgage insurance, which conventional lenders usually charge when you put down less than 20% (estimate it with the PMI calculator), and HOA dues. The rate is treated as fixed for the whole term.
The formula
PITI = P × r ÷ (1 − (1 + r)⁻ⁿ) + annual tax ÷ 12 + annual insurance ÷ 12
| Symbol | Meaning | Unit |
|---|---|---|
| P | Loan amount: home price minus down payment | $ |
| r | Monthly interest rate: annual rate ÷ 12 ÷ 100 | per month |
| n | Number of monthly payments: term in years × 12 | payments |
| annual tax | Yearly property tax bill | $ |
| annual insurance | Yearly homeowners insurance premium | $ |
The principal-and-interest part is the standard fixed-rate amortization formula used on the Loan Estimate and Closing Disclosure forms required by the CFPB. Taxes and insurance are divided evenly across 12 months, which is how escrow accounts collect them.
For an adjustable-rate mortgage (ARM), the result is only valid for the initial fixed period. At each reset the lender recalculates the payment on the remaining balance at the new rate over the remaining term; run the calculator again with those figures to estimate the new payment.
Worked examples
20% down on a $400,000 home
A buyer puts $80,000 down on a $400,000 house at 6.5% for 30 years, with $4,800 a year property tax and $1,500 insurance.
Inputs
- Home price400000 $
- Down payment80000 $
- Interest rate6.5 %
- Term30 years
- Annual property tax4800 $
- Annual home insurance1500 $
Result
- Total monthly payment$2,547.62
- Principal & interest$2,022.62
- Taxes & insurance$525.00
- Loan amount$320,000.00
- Total interest over term$408,142.36
The full payment is $2,547.62, of which $525 is escrow. Over 30 years the $320,000 loan costs $408,142.36 in interest, more than the amount borrowed.
First-time buyer with 10% down
A buyer puts $35,000 down on a $350,000 home at 6.75% for 30 years, with $3,500 tax and $1,800 insurance.
Inputs
- Home price350000 $
- Down payment35000 $
- Interest rate6.75 %
- Term30 years
- Annual property tax3500 $
- Annual home insurance1800 $
Result
- Total monthly payment$2,484.75
- Principal & interest$2,043.08
- Taxes & insurance$441.67
- Loan amount$315,000.00
- Total interest over term$420,510.24
PITI is $2,484.75 before PMI. With only 10% down a conventional lender will usually add mortgage insurance on top until the balance falls to 80% of the home's original value.
Fifteen-year loan on a higher-priced home
A move-up buyer borrows $350,000 on a $500,000 home at 5.9% over 15 years, with $7,500 tax and $2,400 insurance.
Inputs
- Home price500000 $
- Down payment150000 $
- Interest rate5.9 %
- Term15 years
- Annual property tax7500 $
- Annual home insurance2400 $
Result
- Total monthly payment$3,759.62
- Principal & interest$2,934.62
- Taxes & insurance$825.00
- Loan amount$350,000.00
- Total interest over term$178,232.18
The payment is a hefty $3,759.62, but total interest is $178,232.18, far less than a 30-year loan on a similar balance. Fifteen-year loans also usually carry a lower rate.
What goes into your monthly payment
Lenders often describe the payment as PITI. Two common extras sit outside it, so add them yourself when budgeting.
| Component | What it is | Included here |
|---|---|---|
| Principal | Repays the loan balance; small at first, larger each month | Yes |
| Interest | Lender's charge on the balance; largest in the early years | Yes |
| Property tax | Set by your county or city; varies widely by location | Yes |
| Homeowners insurance | Required by the lender; varies by location and coverage | Yes |
| PMI or FHA mortgage insurance | Usually required with under 20% down | No |
| HOA dues | Paid to the association, normally not through escrow | No |
Escrow accounts and why your payment changes
When your lender collects tax and insurance through escrow, the principal-and-interest part of a fixed-rate loan never changes, but the total payment can. Each year the servicer runs an escrow analysis: if your tax bill or insurance premium rose, the monthly escrow amount goes up, and any shortage from the past year is spread over the next 12 months. Federal rules (RESPA) let the servicer hold a cushion of up to one-sixth of the year's escrow payments, roughly two months' worth.
To estimate your escrow, use the actual tax bill for the property (on the listing or the county assessor's site) rather than the seller's figure if they had an exemption you will not get, and get an insurance quote before you make an offer.
Ways to lower the payment
- Put more down: the principal-and-interest part falls in proportion to the loan amount, and reaching 20% removes PMI.
- Buy down the rate: paying discount points at closing (typically 1% of the loan per point) lowers the rate; it pays off only if you keep the loan long enough.
- Choose a longer term: 30 years instead of 15 lowers the payment but roughly doubles the interest paid.
- Appeal your assessment or shop insurance: escrow costs are often easier to cut than the rate.
- Pay extra later: you can keep the low required payment and still save interest with extra principal payments.
How to use the Mortgage Payment Calculator
- 1Enter the home price and your down payment in dollars (10% of $350,000 is $35,000).
- 2Enter the interest rate from your Loan Estimate or a current quote, and the term (usually 30 or 15).
- 3Enter the yearly property tax from the listing or county records, and the yearly homeowners insurance quote.
- 4Read the total monthly payment and the split between principal and interest and escrow; add PMI and HOA dues separately if they apply.
Frequently asked questions
What is the monthly payment on a $300,000 mortgage?
At 6.5% over 30 years, principal and interest on a $300,000 loan is about $1,896 a month, before taxes and insurance. At 7% it rises to about $1,996.
Is PMI included in this payment?
No. Conventional loans with under 20% down usually add PMI; under the Homeowners Protection Act you can ask to cancel it at 80% loan-to-value and it ends automatically at 78% of the original value.
Why is so much of my early payment interest?
Interest is charged on the outstanding balance, which is highest at the start. On a 30-year loan at 6.5%, about 85% of the first payment is interest.
Should I choose a 15-year or 30-year mortgage?
A 15-year loan saves a large amount of interest and usually has a lower rate, but the payment is much higher. A 30-year loan leaves room in the budget; you can still prepay it if you want.
Do I have to pay taxes and insurance through escrow?
Many lenders require escrow, especially with less than 20% down or on FHA and VA loans. Where it is optional, you pay the tax and insurance bills yourself and your mortgage payment is just principal and interest.
References
- Owning a Home: Loan Estimate and Closing Disclosure explainers — Consumer Financial Protection Bureau
- Real Estate Settlement Procedures Act (Regulation X) — Consumer Financial Protection Bureau
- Homeowners Protection Act of 1998 — US Congress
About this calculator
- Built and reviewed by the Calculation Machine team · How we build and test calculators
- Last reviewed: October 24, 2026
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