Mortgage Calculator
Calculate your monthly payment (P&I) plus optional taxes, insurance, and PMI.
+ Add taxes, insurance & PMI (optional)
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How Mortgage Payments Are Calculated
A standard fixed-rate mortgage payment is calculated using the loan amount, interest rate, and loan term. The monthly principal and interest payment remains constant throughout the life of the loan, but the split between principal and interest changes each month — early payments are mostly interest, later payments are mostly principal.
where P = loan amount, r = monthly rate, n = number of payments
PITI: What Your Full Monthly Payment Includes
Lenders often quote mortgage payments as PITI — Principal, Interest, Taxes, and Insurance. Your lender will typically collect property taxes and homeowners insurance as part of your monthly payment, holding them in an escrow account and paying those bills on your behalf. PMI (Private Mortgage Insurance) is also collected monthly if your down payment is less than 20%. Use the PMI Removal Calculator to find out when you can drop it.
Buying Down Your Rate with Points
You can often lower your interest rate by paying "mortgage points" at closing. Each point costs 1% of the loan amount and typically lowers your rate by 0.25%. Whether this makes financial sense depends on how long you plan to keep the loan. Use the Mortgage Points Calculator to find your break-even timeline.