How to Use the Mortgage Payment
Your mortgage payment is more than principal and interest — property tax, insurance, and HOA dues all add up. This calculator gives you the full monthly payment (PITI) on any home price and financing scenario, plus checks it against the classic 28% affordability guideline lenders use.
Step-by-Step Guide
- 1
Enter the home price you're considering.
- 2
Enter your planned down payment.
- 3
Set the interest rate you expect to qualify for.
- 4
Choose your loan term — 30 years is standard, 15 years saves interest but raises the payment.
- 5
Add annual property tax and home insurance estimates for the area.
- 6
Add monthly HOA dues if applicable.
- 7
Enter your annual household income to check affordability against the 28% rule.
Mortgage Payment Formula
Loan Amount = Home Price − Down Payment Monthly P&I = [L × r × (1+r)^n] ÷ [(1+r)^n − 1], where r = monthly rate, n = number of payments Total Monthly Payment = P&I + Property Tax/mo + Insurance/mo + HOA
Worked Example
Home price: $350,000. Down payment: $70,000. Rate: 6.5%. Term: 30 years. Tax: $4,200/yr. Insurance: $1,500/yr. Loan Amount = $280,000 Monthly Rate = 6.5% ÷ 12 = 0.5417% Monthly P&I ≈ $1,769.65 Monthly Tax = $350, Monthly Insurance = $125 Total Monthly Payment ≈ $2,244.65
Understanding your result
Calculator results depend entirely on the information entered. For the most useful estimate, use current and accurate figures and include all costs that apply to your specific situation.
Frequently Asked Questions
What is PITI?
PITI stands for Principal, Interest, Taxes, and Insurance — the four components most lenders bundle into your total monthly mortgage payment, sometimes with HOA dues added on top.
How much house can I afford?
A common rule of thumb is keeping total housing costs at or below 28% of gross monthly income, and total debt payments below 36%. Lenders may qualify you higher, but staying near 28% leaves more financial breathing room.
Is a 15-year or 30-year mortgage better?
A 15-year mortgage has a higher monthly payment but dramatically less total interest and builds equity faster. A 30-year mortgage has lower payments, more flexibility, and lets you invest the difference — the right choice depends on your cash flow and goals.
How much down payment do I need?
Conventional loans often allow as little as 3–5% down, FHA loans 3.5%, and VA/USDA loans 0% for eligible buyers. Putting down 20% avoids private mortgage insurance (PMI) but isn't strictly required.
Does this include PMI?
This calculator doesn't automatically add PMI. If your down payment is below 20%, add an estimated PMI cost (typically 0.3–1.5% of the loan annually) to your monthly expenses manually.