What the result explains
What This Calculator Provides
Enter a home price, down payment, annual rate, and fixed term to estimate the loan principal and monthly principal-and-interest payment. Optional annual property tax, homeowners insurance, and PMI amounts are divided by 12 and displayed separately before being added to the entered PITI estimate. If those optional fields are blank, the meaningful monthly result is principal and interest only—not total housing cost.
- loan amount after down payment
- monthly principal and interest
- separate entered tax, insurance, PMI, and PITI estimate
- total principal and interest across the term
How to Use This Calculator
- Enter the known valuesUse the labeled fields and units shown in the calculator. Correct any validation message before continuing.
- Review the resultRead the main answer together with its breakdown, formula, rounding, and assumptions.
- Copy and verifyCopy the result when available, then check important decisions against the relevant record, institution, or professional.
Method
Formula and Calculation Method
Fixed mortgage payment formula
M = P × r × (1 + r)ⁿ ÷ ((1 + r)ⁿ − 1)
- P = home price − down payment
- r = annual rate ÷ 12 ÷ 100
- n = term in years × 12
The formula produces level monthly principal-and-interest payments. Optional annual costs are divided by 12 and added afterward; they are not amortized.
Worked from input to answer
Worked Examples
$400,000 home with 20% down
- $400,000 − $80,000 down = $320,000 principal
- 6.5% fixed annual rate; 30 years = 360 payments
- Entered annual tax = $4,800 and insurance = $1,800
Result: Monthly P&I = $2,022.62; entered PITI estimate = $2,572.62.
How the first payment differs from the last
- Each month’s interest is the remaining balance × monthly rate.
- Early payments contain more interest because the balance is larger.
- As principal falls, more of the fixed P&I payment reduces principal.
Result: Across 360 scheduled payments, estimated interest is $408,142.36 before optional costs.
Reading the Payment in Context
A mortgage payment is a loan payment with property costs bolted on. To see the borrowing on its own, without tax, insurance, or PMI, use the loan calculator; for a month-by-month balance view, the EMI calculator shows how the split moves over the term.
Down payment thresholds are percentages, and the percentage calculator makes the PMI boundary easy to test. Affordability is judged against net pay, which the paycheck calculator estimates for 2026.
What the monthly result includes
- Principal and interest are calculated from the loan amount, rate, and term.
- Property tax, insurance, and PMI appear only when you enter annual estimates.
- HOA dues, utilities, maintenance, closing costs, and lender fees are not included.
Down payment and PMI
The down payment reduces the principal financed. PMI can apply to some loans with a smaller down payment, but rules, cancellation, and price vary by loan program and lender. Enter an annual PMI quote only if you have one; the calculator does not infer eligibility or rate.
Amortization and total interest
A fixed P&I payment stays level while its composition changes. A longer term spreads principal over more payments and often lowers the monthly amount, but usually raises the total interest paid for the same rate and principal.
Practical Uses
- Comparing home prices and down payments
- Estimating principal and interest for a fixed-rate loan
- Adding known annual tax and insurance estimates
- Understanding the term-versus-interest trade-off
Assumptions
- The mortgage has a fixed rate and monthly payments.
- Payments are made on schedule for the full term.
- Optional annual costs stay constant and are divided evenly by 12.
- No extra payments, fees, escrow changes, or rate changes occur.
Important Limitations
- This is not a lender quote, approval, or complete housing budget.
- Taxes, insurance, PMI, escrow adjustments, HOA dues, and fees can change.
- APR can include costs that are not represented by the entered interest rate.
Help & support
Frequently Asked Questions
Quick answers to common questions about the Mortgage calculator.
What does P&I mean?
P&I is the monthly principal and interest payment calculated from the fixed-rate amortization formula.
What does PITI mean?
PITI stands for principal, interest, property taxes, and homeowners insurance. This page also adds PMI when entered.
Is the displayed PITI my full housing cost?
Only for the annual costs you enter. HOA dues, maintenance, utilities, fees, and changing escrow costs are not included.
Does the calculator infer PMI?
No. Enter an annual PMI estimate from a relevant quote if applicable.
Why can a lender payment differ?
A lender may use different fees, timing, escrow estimates, APR components, and rounding.