Calculate exact monthly mortgage payments (PITI) including principal, interest, property taxes, home insurance, and HOA fees. Export full amortization tables.
When budgeting for a home purchase, looking at loan principal and interest alone is misleading. Lenders usually collect monthly escrow payments to cover annual property taxes and homeowners insurance policies. Additionally, if your down payment is under 20% on a conventional loan, Private Mortgage Insurance (PMI) is required, adding an extra monthly cost. A typical monthly mortgage payment consists of four core elements (PITI): 1. Principal: The portion of your payment that directly reduces your remaining loan balance. 2. Interest: The fee paid to your lender for borrowing the principal. 3. Taxes: Local county or municipal property taxes collected into an escrow account. 4. Insurance: Homeowners hazard insurance and potential flood or earthquake policies. In the early years of a 30-year fixed mortgage, the vast majority of your monthly payment goes toward interest rather than equity. As time progresses, the ratio shifts until principal reduction dominates the final decade of payments. This calculator builds a full month-by-month and year-by-year amortization table so you can see exactly when you cross key equity milestones.
PITI stands for Principal, Interest, Taxes, and Insurance. It represents the total baseline monthly cost of owning a home with a mortgage, including county property taxes and homeowners insurance collected via escrow.
An amortization schedule is a complete table breaking down every monthly mortgage payment over the life of your loan. It specifies how much of each payment goes toward paying off the loan principal versus paying lender interest.
Mortgage interest is calculated on the remaining principal balance. Because your balance is highest at the beginning of the loan, interest charges are front-loaded. As your principal shrinks, less interest accrues each month.
PMI is insurance that protects the lender if you default on your loan. Lenders usually require PMI on conventional mortgages when your down payment is less than 20% of the home's purchase price.
A 30-year mortgage offers lower monthly payments, making home purchase more accessible. A 15-year mortgage has higher monthly payments but typically comes with lower interest rates and saves tens of thousands of dollars in total interest.
Making extra payments directly toward your loan principal reduces the balance that future interest is calculated on. This shortens your loan payoff timeline and reduces the total interest paid over the life of the mortgage.
Property taxes are levied by local governments (counties, cities, or school districts) based on the assessed value of your home. Lenders typically divide annual property taxes by 12 and include that amount in your monthly mortgage payment.
Closing costs (usually 2% to 5% of the loan amount for lender fees, title insurance, and appraisal) are typically paid upfront at closing rather than financed into your monthly payment, unless rolled into loan principal.
An escrow account is a neutral holding account managed by your mortgage servicer. A portion of your monthly payment is held in escrow to pay your annual property tax and homeowners insurance bills when they come due.
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