Estimated PITI mortgage payment: principal and interest plus property tax, insurance, and PMI under 20% down — the standard amortization formula, shown.
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What a monthly mortgage payment contains
Lenders quote rates, but you write one check: PITI — principal and interest on the note, plus one-twelfth of your annual property tax and homeowners insurance, which most lenders collect in escrow. Put less than 20% down and private mortgage insurance (PMI) joins the stack until you build enough equity.
The payment formula
Principal and interest use the standard fixed-rate annuity formula, with monthly rate r = APR ÷ 12 and n total payments:
M = P × r × (1+r)^n ÷ ((1+r)^n − 1)
At a 0% rate the payment collapses to P ÷ n. Tax, insurance, and PMI are added as twelfths of annual amounts on top of M.
What this estimate leaves out
Escrow amounts here are level estimates — tax reassessments and premium changes move the real payment every year. HOA dues, closing costs, and adjustable-rate resets sit outside the formula. Treat the output as a way to compare scenarios, not a quote.
Worked example
A $400,000 home, $80,000 down, 6.5% fixed, 30 years.
Plus $400 tax + $125 insurance = $2,547.62 PITI (no PMI at exactly 20% down).
How to use it
Enter the price and your down payment cash — the loan amount updates in the results.
Add annual property tax and insurance from local quotes; set both to $0 to isolate principal and interest.
Read the PITI total and the row breakdown — PMI appears automatically under 20% down.
Nudge the rate or term to compare offers side by side.
Frequently asked questions
What is included in a total monthly mortgage payment?
PITI: principal and interest on the loan, plus one-twelfth of your annual property tax and homeowners insurance, which lenders usually collect in escrow. If your down payment is under 20%, private mortgage insurance is added until you reach that equity threshold.
How does my down payment affect PMI?
Below 20% down, lenders require PMI priced around 0.5–1.5% of the loan balance per year; this calculator uses 0.75%. At 20% down it disappears entirely, and federal rules force automatic cancellation once your balance reaches 78% of the original loan.
What formula does this calculator use?
The standard fixed-rate annuity formula M = P × r × (1+r)^n ÷ ((1+r)^n − 1), where r is the APR divided by 12 and n is the total number of payments. At a 0% rate it reduces to P ÷ n.
Which costs less, a 15-year or a 30-year mortgage?
The 15-year, in total interest. On $320,000 at 6.5%, the 30-year runs $2,022.62 a month and about $408,000 of interest; the 15-year runs $2,787.54 a month but only about $182,000 of interest. The 30-year only wins if the payment difference earns more invested elsewhere.
Are property taxes and insurance really part of the payment?
With an escrow account, yes: you pay one-twelfth of each annual bill every month and the lender pays the bills when due. The amounts are estimates — reassessments and premium changes shift the payment annually.
Do extra principal payments lower this payment?
No — on a fixed-rate loan, extras shorten the term while the required payment stays the same. Every extra dollar does skip all future interest charged on it; the Loan Amortization Calculator shows the exact schedule effect.