Mortgage Calculator

What goes into a mortgage payment (PITI)

A mortgage payment is usually more than principal and interest. Lenders often bundle in property tax and homeowners insurance and collect them monthly into an escrow account, which is why the industry uses the shorthand PITI: Principal, Interest, Taxes and Insurance.

If your down payment is below about 20 percent, many lenders also add private mortgage insurance (PMI) until you build enough equity. Seeing the full PITI figure, rather than just principal and interest, gives you a realistic picture of the monthly cost of owning the home.

How much home can you afford

A common guideline is the 28/36 rule: aim to keep housing costs under about 28 percent of your gross monthly income, and total debt payments under about 36 percent. It is a starting point rather than a hard limit, but it helps you avoid stretching too far.

Remember the upfront costs too. A larger down payment lowers your loan, your monthly payment and your total interest, and reaching 20 percent typically removes PMI. Budget separately for closing costs, which often run a few percent of the purchase price.

What does PITI mean?

PITI stands for Principal, Interest, Taxes and Insurance, the four parts that typically make up a monthly mortgage payment.

How much down payment should I make?

A 20% down payment usually lets you avoid private mortgage insurance (PMI). A larger down payment lowers both your monthly payment and total interest.

Does this include property tax and insurance?

Yes, you can enter annual property tax and homeowners insurance and the calculator folds them into your monthly estimate.

Is 15 or 30 years better?

A 15-year term has higher monthly payments but far less total interest. A 30-year term is cheaper monthly but costs much more over time.