How this calculator works
Enter the home price, your down payment, the interest rate, and the loan term, and this calculator computes your principal & interest payment using standard amortization math, then adds property tax, homeowners insurance, HOA dues, and PMI (if your down payment is under 20%) to estimate your total monthly payment.
The formula
loanAmount = homePrice − downPayment M = loanAmount × (r/12) × (1 + r/12)^n / ((1 + r/12)^n − 1) where r = annual interest rate, n = termYears × 12 (if r = 0: M = loanAmount / n) PMI (if down payment < 20% of home price) = loanAmount × pmiRate / 12, else $0 PITI = M + propertyTax/12 + insurance/12 + HOA + PMI
Worked example
A $400,000 home with 20% down ($80,000), a $320,000 loan at 6.5% for 30 years, plus $4,800/year property tax, $1,200/year insurance, and $50/month HOA:
- Principal & interest: $2,022.62/month
- Property tax: $4,800 ÷ 12 = $400.00/month
- Insurance: $1,200 ÷ 12 = $100.00/month
- HOA: $50.00/month
- PMI: $0 (20% down means no PMI)
- Total PITI: $2,022.62 + $400.00 + $100.00 + $50.00 = $2,572.62/month
Frequently asked questions (FAQ)
What's included in PITI?
PITI stands for Principal, Interest, Taxes, and Insurance — the four components most lenders bundle into one monthly mortgage payment. This calculator adds HOA dues and PMI (if applicable) on top, since those often show up in the same monthly bill.
15-year vs 30-year mortgage — which is better?
A 15-year loan has a higher monthly payment but a much lower interest rate and total interest paid over the life of the loan. A 30-year loan has lower monthly payments, giving more flexibility, at the cost of more total interest. Try both terms here to compare.
When does PMI drop off?
Lenders are generally required to automatically cancel PMI once your loan balance reaches 78% of the home's original value, and you can typically request cancellation yourself at 80%. This calculator doesn't model that automatic drop-off — it estimates PMI as a flat ongoing cost while your down payment is under 20%.
How much house can I afford?
A common guideline is keeping your total monthly housing payment (PITI) at or below 28% of your gross monthly income, and total debt payments below 36%. Use this calculator to see how price, down payment, and rate trade off against your target monthly payment.
Does a bigger down payment always save money?
A bigger down payment lowers your loan amount, your monthly payment, your total interest, and can eliminate PMI once you reach 20% down. It does mean less cash on hand, though — the right amount depends on your other financial priorities.