Mortgage Payment Calculator (PITI)
Full monthly payment: principal, interest, taxes, and insurance.
Annual property tax billed by your county.
Annual insurance premium.
Annual PMI, if any. Often required below 20% down.
Monthly homeowner-association dues, if any.
Total monthly payment
- Principal & interest
- $1,896.20
- Property tax
- $300.00
- Homeowner's insurance
- $100.00
- PMI
- $0.00
- HOA dues
- $0.00
- Total interest over loan
- $382,636.71
Estimate. Lenders typically escrow taxes and insurance; your exact escrow may differ.
How the mortgage PITI calculator works
A mortgage payment is more than the loan. PITI bundles the four costs a lender typically collects each month: Principal, Interest, Taxes, and Insurance. This tool builds that full payment, and adds two common extras, PMI and HOA dues, so the number you see is close to what will actually leave your account.
The principal-and-interest part comes from the same amortization engine used across the loan tools. It solves for the level payment that pays the loan to exactly zero over the term, using M = P*r / (1 - (1+r)^-n), where P is the loan amount, r is the monthly rate (annual rate divided by twelve), and n is the number of months. Property tax, insurance, and PMI are entered as annual figures and divided by twelve to get the monthly escrow share. HOA dues are already monthly, so they pass through unchanged. The total is the sum of all five lines, each rounded to the cent.
Worked example
A 300,000 loan at a 6.5% annual rate over 30 years (360 months), with 3,600 a year in property tax, 1,200 a year in insurance, 1,800 a year in PMI, and 200 a month in HOA dues.
- Monthly rate:
r = 6.5% / 12 = 0.0054167 - Principal & interest:
M = 300000 * 0.0054167 / (1 - 1.0054167^-360) = 1,896.20 - Property tax:
3,600 / 12 = 300.00 - Insurance:
1,200 / 12 = 100.00 - PMI:
1,800 / 12 = 150.00 - HOA:
200.00
| Component | Monthly |
|---|---|
| Principal & interest | 1,896.20 |
| Property tax | 300.00 |
| Insurance | 100.00 |
| PMI | 150.00 |
| HOA | 200.00 |
| Total | 2,646.20 |
So the loan itself costs 1,896.20 a month, but the true monthly housing cost is 2,646.20, roughly 40% higher once taxes, insurance, PMI, and dues are stacked on. With only the tax and insurance escrow and no PMI or HOA, the total would be 2,296.20.
How to use it
- Enter the loan amount, which is the home price minus your down payment.
- Enter the annual rate as a percent, for example 6.5 for 6.5%, not 0.065.
- Set the term in years (most fixed mortgages are 30 or 15).
- Enter property tax and insurance as yearly amounts; the tool converts them to monthly.
- Add PMI if your down payment is under twenty percent, and HOA dues if your home is in an association.
- Switch the currency at the top to match where you are buying.
Limitations
This is an estimate, not financial advice. It assumes a fixed rate and fixed escrow amounts, so it does not capture rate changes on adjustable loans, tax reassessments, insurance premium hikes, escrow shortages, or the point at which PMI drops off as you gain equity. It also excludes closing costs, points, and one-time fees. Lenders round and escrow slightly differently, so treat the result as a planning figure and confirm exact numbers with your lender before you commit.
Frequently asked questions
What does PITI stand for?
PITI is the four parts of a typical monthly mortgage payment: Principal, Interest, Taxes, and Insurance. Principal and interest pay down the loan itself. Taxes are your annual property tax, and insurance is your homeowner's policy, both usually collected monthly by the lender and held in an escrow account until the bills come due. This calculator also lets you add PMI and HOA dues, which many buyers face on top of the core four.
Why are my taxes and insurance divided by twelve?
Property tax and homeowner's insurance are billed once or twice a year, but lenders collect them in equal monthly installments so you are not hit with a large bill all at once. The calculator takes the annual figure you enter and divides it by twelve to show the monthly escrow amount. If your county or insurer raises the bill, your monthly escrow rises to match at the next review.
When do I have to pay PMI?
Private mortgage insurance is usually required when your down payment is below twenty percent of the home's value, because the lender carries more risk. It protects the lender, not you, and is added to your monthly payment until you build enough equity, often around twenty to twenty-two percent, at which point it can be removed. Enter your annual PMI premium to see its monthly share; leave it at zero if you put twenty percent or more down.
Does this include the down payment?
No. Enter the loan amount, which is the price of the home minus your down payment. The down payment is paid up front and is not part of the monthly cost, so it does not appear in PITI. If you are deciding how much to borrow, subtract your planned down payment from the purchase price first, then enter that figure as the loan amount.
Are HOA dues part of PITI?
Strictly, no. HOA dues are not principal, interest, taxes, or insurance, and lenders do not escrow them. But they are a real recurring housing cost, so the calculator includes them in the total monthly figure to give you an honest picture of what you will actually pay each month. Enter your monthly HOA amount, or leave it at zero if your home is not in an association.