Mortgage Calculator
Determine the real monthly carrying cost of homeownership before making an offer. This tool computes total monthly housing outflow (PITI + HOA) alongside full 15- or 30-year amortisation metrics.
Total agreed sales price of the property
Upfront cash paid toward equity (e.g. 20%)
Annual fixed mortgage rate
Amortisation duration in years
Yearly municipal property taxes (~1.2% average)
Yearly hazard/homeowners insurance premium
Homeowners association or condo monthly dues
Principal, Interest, Taxes, Insurance & HOA
How to Use This Calculator
- Enter the total purchase price agreed for the residential property.
- Specify your down payment cash amount (20% or $80,000 on a $400,000 home avoids PMI).
- Enter the fixed mortgage interest rate quoted by your mortgage originator.
- Select the loan term (30-year fixed is standard; 15-year accelerates principal payoff).
- Include annual property taxes and insurance to calculate the complete monthly escrow amount.
Formula & Calculation Methodology
Lenders qualify borrowers based on PITI (Principal, Interest, Taxes, and Insurance) to ensure all recurring housing obligations fit within debt-to-income limits.
Worked Example
$400,000 home, 20% down ($80,000), 30-year fixed at 6.5%, $4,800 tax, $1,400 ins
Frequently Asked Questions
What does PITI stand for in mortgage lending?↓
PITI represents Principal, Interest, Taxes, and Insurance — the four mandatory components of an escrowed monthly mortgage payment. Lenders look at total PITI to verify debt-to-income ratios.
Does this calculator include Private Mortgage Insurance (PMI)?↓
This baseline model assumes down payments of 20% or higher where PMI is waived. If putting down less than 20% on a conventional loan, expect an extra 0.3% to 1.2% in annual PMI added to your payment.
Should I choose a 15-year or 30-year fixed mortgage?↓
A 15-year mortgage offers lower interest rates and saves tens of thousands in lifetime interest, but requires substantially higher monthly payments. A 30-year mortgage offers cash flow flexibility and lower mandatory monthly payments.
Are property taxes and insurance paid directly to the lender?↓
In most conventional mortgages, lenders collect 1/12th of your estimated annual property taxes and hazard insurance premiums each month into an escrow account, paying the taxing authority and insurer on your behalf.
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Source Citation & Disclaimer
Informational tool only; not licensed tax, legal, or financial advice.