Estimate your monthly mortgage payment — including principal, interest, taxes, and insurance (PITI).
Your monthly principal & interest payment is calculated using the standard mortgage amortization formula, based on your loan amount (home price minus down payment), your monthly interest rate, and the total number of monthly payments over your loan term.
Add your annual property tax, annual home insurance, and monthly HOA fees to see your full estimated monthly housing cost — often called PITI (Principal, Interest, Taxes, Insurance). For many homeowners, principal and interest make up 60–80% of the total payment, with taxes and insurance making up the rest.
PITI stands for Principal, Interest, Taxes, and Insurance — the four components that typically make up a total monthly mortgage payment, along with HOA fees if applicable.
It's calculated using the standard amortization formula, based on the loan amount, the monthly interest rate, and the total number of monthly payments over the loan term.
A larger down payment reduces the loan principal, which lowers both your monthly payment and the total interest paid over the life of the loan. A down payment below 20% may also require private mortgage insurance (PMI).
Interest is charged on a large loan balance over many years, so even small rate changes compound significantly. A 1% difference in rate can change total interest paid by tens of thousands of dollars over a 30-year loan.
A longer loan term (like 30 years vs. 15 years) lowers your monthly payment but increases the total interest paid over the life of the loan, since interest accrues for a longer period.