Principal & interest
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Mortgage Calculator — Monthly Payment & Total Cost
Work out your monthly mortgage payment including principal, interest, property tax, and home insurance. The classic PITI breakdown that lenders use.
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total monthly payment (PITI)
Total interest
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Loan amount
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Does not include PMI, HOA fees, or closing costs. Property tax defaults to 1.2% (US national average, 2024).
The real cost of a mortgage
A $400,000 30-year mortgage at 6.5% costs about $2,528/month PITI, but you pay back $910,000 over 30 years — $510,000 of that is interest, more than the original loan. A 15-year term at the same rate cuts the total interest to $260,000, but the monthly payment is $3,484. The 30-year is more affordable monthly; the 15-year is dramatically cheaper in total.
How this calculator works
PITI = Principal & Interest + monthly property tax + monthly insurance. Principal & Interest is calculated with the standard amortization formula. Property tax is (home price × rate) / 12; insurance is (annual premium) / 12.
Frequently asked questions
How much house can I afford on my salary?
A common rule is the 28/36 rule: housing costs (PITI) should not exceed 28% of gross monthly income, and total debt payments (including the mortgage) should not exceed 36%. So if you make $10,000/month gross, your housing budget is about $2,800. Real lenders also qualify based on credit score, down payment, and other debt.
Should I put 20% down to avoid PMI?
Generally yes. PMI (private mortgage insurance) costs 0.5-1.5% of the loan annually and protects the lender, not you, if you default. Putting 20% down (or refinancing once you have 20% equity) lets you skip it entirely. Some loan types like VA loans waive PMI regardless.
What is PMI and how do I avoid it?
Private mortgage insurance protects the lender if you stop paying. It typically costs 0.5-1.5% of the loan balance per year and is required when your down payment is below 20%. You can ask to remove PMI once your loan-to-value ratio drops below 80% — usually after 5-7 years of payments on a 30-year mortgage, depending on appreciation.
Last updated — rates and figures change over time, so always confirm with the current source.
Estimates for general information only, not financial advice — see our disclaimer.