How this calculator works
This calculator finds the standard principal-and-interest (P&I) payment on a fixed-rate mortgage, then optionally layers on the recurring costs that make up a full monthly housing payment: property tax, home insurance and HOA dues. Lenders and homeowners often call that combined figure PITI (principal, interest, taxes, insurance).
Leave the tax, insurance and HOA fields at zero to see the pure loan payment, or fill them in to see what actually lands in your bank account each month. The amortization table below the results shows, year by year, how much of the loan balance is paid down and how much goes to interest.
The formula
Principal & interest: M = P × i ÷ (1 − (1 + i)^−n)Total monthly payment: M + (annual property tax ÷ 12) + (annual home insurance ÷ 12) + monthly HOAP is the loan amount, i the monthly interest rate (annual rate ÷ 12), and n the number of monthly payments (years × 12). Property tax and insurance are entered as annual amounts because that is how they are typically billed, then divided by 12 to match the monthly payment.
Worked example: $300,000 at 6.5% for 30 years
- Monthly rate i = 0.065 ÷ 12 = 0.005417; number of payments n = 360.
- P&I payment M = 300,000 × 0.005417 ÷ (1 − 1.005417^−360) ≈ $1,896.20.
- Add $300/month property tax, $100/month insurance and $50/month HOA: total monthly payment ≈ $2,346.20.
- Over 30 years, total interest on the loan alone is about $382,633 — more than the loan amount itself.
Frequently asked questions
What does PITI stand for?
Principal, interest, taxes and insurance — the four components lenders typically add together to estimate your full monthly housing cost, sometimes with HOA dues added as a fifth item.
Why is my real payment higher than the P&I number?
Because property tax, homeowners insurance, HOA dues, and sometimes private mortgage insurance (PMI) are usually collected monthly along with principal and interest, often through an escrow account managed by the lender.
Does a bigger down payment lower the P&I payment?
Yes — a larger down payment reduces the loan amount financed, which directly reduces both the monthly P&I payment and the total interest paid, since the amortization formula scales with the principal.
Why does so much of my early payments go to interest?
Interest each month is charged on the remaining balance, which is largest at the start of the loan. As the balance shrinks, a growing share of the fixed payment goes toward principal — visible in the amortization table.
Does this calculator include PMI or closing costs?
No. It covers principal, interest, property tax, home insurance and HOA fees only. PMI (common when the down payment is under 20%) and one-time closing costs vary by lender and are not modeled here.