🏠 Home Mortgage Calculator
Calculate your complete home mortgage payment (PITI)
Leave blank if calculating from percentage
Optional - leave blank if not including taxes
Optional - leave blank if not including insurance
How to Use This Calculator
Enter Home Price and Down Payment
Input the purchase price of the home and your down payment amount. The calculator will determine your loan amount.
Enter Interest Rate and Loan Term
Input your mortgage interest rate and loan term (typically 15 or 30 years).
Add Property Taxes and Insurance (Optional)
Optionally include annual property tax and home insurance to see your complete PITI payment.
Review Complete Payment Breakdown
See your total monthly payment (PITI) broken down into principal, interest, taxes, and insurance.
Formula
Monthly Payment (P&I) = P × [r(1+r)^n] / [(1+r)^n - 1]
Where: P = Loan Amount, r = Monthly Rate, n = Number of Payments
Total Monthly Payment (PITI) = P&I + (Property Tax / 12) + (Insurance / 12)
Example 1: $300,000 Home
Home Price: $300,000
Down Payment: $60,000 (20%)
Loan Amount: $240,000
Interest Rate: 4.5%, Term: 30 years
Monthly P&I: ~$1,216.04
Property Tax: $3,600/year = $300/month
Insurance: $1,200/year = $100/month
Total Monthly Payment (PITI): $1,616.04
About Home Mortgage Calculator
The Home Mortgage Calculator is a comprehensive tool for homebuyers to calculate their complete monthly mortgage payment, including Principal, Interest, Taxes, and Insurance (PITI). This calculator provides a complete picture of your housing costs, helping you budget accurately and understand the full financial commitment of homeownership. Unlike basic mortgage calculators that only show principal and interest, this tool includes property taxes and home insurance to give you the true monthly payment amount.
Understanding your complete PITI payment is crucial for home buying decisions, as property taxes and insurance can significantly impact your monthly housing costs. Property taxes vary by location and can range from less than 1% to over 2% of the home's value annually. Home insurance costs also vary based on location, home value, coverage amount, and other factors. This calculator helps you account for these costs when determining how much house you can afford.
This calculator is essential for first-time homebuyers who may not be familiar with all the costs associated with homeownership, as well as experienced buyers who want to accurately compare different properties and loan scenarios. By providing a complete payment breakdown, this tool helps you make informed decisions about your home purchase and ensures you're prepared for the full monthly payment amount, not just the principal and interest portion.
When to Use This Calculator
- Home Purchase Planning: Calculate complete monthly payment before house hunting
- Budget Planning: Understand total housing costs including taxes and insurance
- Property Comparison: Compare total monthly costs across different properties
- Affordability Analysis: Determine if you can afford a specific home
- Loan Comparison: Compare different loan scenarios and their total costs
- Refinance Evaluation: Calculate new payment amounts when refinancing
Why Use Our Calculator?
- ✅ Complete PITI Calculation: Includes principal, interest, taxes, and insurance
- ✅ Accurate Budgeting: See your true monthly housing cost
- ✅ Payment Breakdown: Understand each component of your payment
- ✅ Free Tool: No registration or fees required
- ✅ Easy to Use: Simple interface for quick calculations
- ✅ Mobile Friendly: Calculate on any device
Understanding PITI Payments
PITI stands for Principal, Interest, Taxes, and Insurance - the four components that make up your total monthly mortgage payment. The Principal and Interest (P&I) portion is calculated based on your loan amount, interest rate, and loan term. Property Taxes are typically paid monthly through an escrow account, and the amount varies by location and property value. Home Insurance (also called hazard insurance) protects your property and is also usually paid through escrow.
Many lenders require you to pay property taxes and insurance through an escrow account, which means these costs are included in your monthly payment. This ensures that taxes and insurance are paid on time and helps you budget for these expenses. Understanding your complete PITI payment is essential for accurate budgeting and ensuring you can afford your home purchase.
Real-World Applications
First-Time Homebuyer: A buyer is considering a $350,000 home with 20% down ($70,000). The P&I payment is $1,418/month, but with $4,200/year in property taxes ($350/month) and $1,500/year in insurance ($125/month), the total PITI payment is $1,893/month. This complete picture helps them budget accurately.
Property Comparison: Comparing two $300,000 homes: Home A has $2,400/year taxes, while Home B has $6,000/year taxes. Even with the same loan terms, Home B's total monthly payment is $300 higher, significantly impacting affordability.
Budget Planning: A buyer knows they can afford $2,000/month total. Using this calculator, they can work backwards to determine the maximum home price that fits their budget, accounting for taxes and insurance in their area.
Important Considerations
- Property taxes vary significantly by location and can change over time
- Home insurance costs depend on location, coverage, and property characteristics
- Some areas have additional costs like HOA fees, flood insurance, or special assessments
- Property taxes and insurance may increase over time, affecting your payment
- Lenders typically require escrow accounts for taxes and insurance
- Always verify actual tax and insurance costs with local sources before finalizing a purchase
Frequently Asked Questions
What is PITI?
PITI stands for Principal, Interest, Taxes, and Insurance - the four components of your total monthly mortgage payment. Principal and Interest are the loan payment, while Taxes and Insurance are property-related costs typically paid through an escrow account.
Why include property taxes and insurance?
Property taxes and insurance are significant costs that affect your monthly housing budget. Many lenders require these to be paid through escrow, so they're part of your monthly payment. Including them gives you the true cost of homeownership.
How do I find property tax and insurance amounts?
Property tax information is usually available from the county assessor's office or real estate listings. Insurance costs can be estimated by contacting insurance companies or using online insurance calculators. Your real estate agent can also help provide estimates.
Can property taxes and insurance change?
Yes, property taxes can change based on reassessments, tax rate changes, or improvements to the property. Insurance costs can also change based on claims, market conditions, or coverage adjustments. Your monthly payment may adjust if these costs change.
What if I don't know the exact tax and insurance amounts?
You can estimate these amounts or leave them blank to see just the principal and interest payment. However, for accurate budgeting, it's best to get estimates from your real estate agent, county assessor, or insurance companies.
Are there other costs I should consider?
Yes, additional costs may include HOA fees, private mortgage insurance (PMI) if down payment is less than 20%, flood insurance in certain areas, maintenance and repairs, utilities, and closing costs. These aren't included in PITI but should be part of your homeownership budget.