💰 Financial
Mortgage Calculator
Estimate your monthly mortgage payments including principal, interest, taxes, and insurance (PITI). Understand exactly how much house you can afford and how your down payment affects your monthly cost.
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Formula
M = P[r(1+r)^n/((1+r)^n-1)] + Taxes + InsuranceM- Total monthly payment
P- Principal loan amount (home price minus down payment)
r- Monthly interest rate (annual rate divided by 12)
n- Total number of monthly payments (years × 12)
Example
Standard 30-Year Mortgage Example
Calculating the payment for a $300,000 home with a 20% down payment.
- Calculate the principal: $300,000 - $60,000 (20%) = $240,000 loan amount.
- Convert 6.5% annual rate to monthly: 6.5% / 12 = 0.541%.
- Calculate number of payments: 30 years × 12 = 360 months.
- Apply the formula: $240,000 × [0.00541(1+0.00541)^360 / ((1+0.00541)^360 - 1)] = $1,516.96 for Principal & Interest.
Frequently Asked Questions
PITI stands for Principal, Interest, Taxes, and Insurance. It represents your total monthly housing expense, not just the loan repayment.
A 15-year mortgage has higher monthly payments but saves you a significant amount in total interest. A 30-year mortgage offers lower, more affordable monthly payments but costs more over the life of the loan.
A larger down payment reduces your loan principal, which directly lowers your monthly payment and total interest. If you put down at least 20%, you also avoid paying Private Mortgage Insurance (PMI).
Authoritative References & Standards
- Mortgage Basics and Payment Factors ↗Consumer Financial Protection Bureau (CFPB)
Official information on principal, interest, amortization schedules, and home financing.