Mortgage Payment Calculator
Calculate your monthly mortgage payment with taxes, insurance, and PMI. See full amortization schedule.
Calculate your monthly mortgage payment with taxes, insurance, and PMI. See full amortization schedule.
Calculate your monthly mortgage payment with taxes, insurance, and PMI. See full amortization schedule.
Calculate your monthly mortgage payment with taxes, insurance, and PMI. See full amortization schedule.
The principal and interest (P&I) portion of a mortgage payment uses standard amortization: M = P × r × (1+r)^n / ((1+r)^n − 1), where P is the loan amount, r is the annual interest rate divided by 12, and n is the term in months. On a $400,000 home with 20% down at 6.5% over 30 years, the loan is $320,000 and P&I is about $2,022.62. Total monthly payment includes property tax, homeowners insurance, and PMI if down payment is below 20%.
PITI stands for Principal, Interest, Taxes, and Insurance — the four components of a typical monthly mortgage payment. Principal and interest are calculated by the amortization formula. Taxes are the annual property tax divided by 12 and held in escrow by your lender. Insurance is your homeowners policy divided by 12. If you put less than 20% down, the lender adds PMI; if you have an HOA, your dues are typically paid separately and not part of PITI.
Under the Homeowners Protection Act (HPA), lenders must automatically cancel PMI when your scheduled loan-to-value (LTV) reaches 78% based on the original property value, and you can request manual cancellation at 80% LTV if your payment history is clean. Cancellation does not happen on FHA loans — those carry MIP for the life of the loan (or 11 years on lower-LTV originations) and the only way to remove MIP is to refinance to a conventional loan.
20% down eliminates PMI (saving 0.3%–1.5% of the loan annually) and typically secures the lender's best rate tier. But putting 20% down requires meaningful cash — on a $400,000 home, that's $80,000 plus closing costs. The opportunity cost is the return you could have earned investing the difference. A common rule of thumb is to put down enough to avoid PMI if you can comfortably do so, but not to delay buying for years just to reach 20%.
A common rule is the 28/36 guideline: housing PITI should not exceed 28% of gross monthly income, and total debt payments (housing + cars + cards + student loans) should not exceed 36%. A household earning $100,000 gross has $8,333 per month — 28% is $2,333 PITI, supporting a home value around $325,000–$375,000 at current rates depending on down payment. Use CalcLeap's home affordability calculator to model your specific situation.