What PITI actually stands for
Most mortgage payments bundle four separate costs, commonly abbreviated PITI:
- Principal — repaying the amount borrowed.
- Interest — the lender's cost of financing the loan.
- Taxes — property tax, often collected monthly and held in escrow.
- Insurance — homeowner's insurance, also frequently escrowed.
A calculator that only shows principal and interest will understate your real monthly cost — always check whether taxes and insurance are included in the figure you're looking at.
Down payment: the 20% threshold
Putting down at least 20% of the home's price typically avoids PMI (Private Mortgage Insurance) — an extra monthly cost lenders charge on smaller down payments to offset their risk. PMI can add a meaningful amount to your payment, so it's worth calculating both scenarios if you're close to that threshold.
Term length changes more than the monthly number
A 15-year mortgage has a higher monthly payment than a 30-year mortgage on the same loan amount — but pays off the principal much faster and pays dramatically less total interest over the life of the loan. Run both terms through the calculator before deciding; the difference is often larger than people expect.
How to use the calculator
Enter home price and down payment
The Mortgage Calculator works out your loan amount automatically.
Add rate, term, tax and insurance
Include estimated annual property tax and insurance for a realistic total payment.
Compare terms and down payments
Try a few combinations side by side before you commit to an offer.
Property tax rates vary significantly by location — use your specific county or municipality's rate rather than a national average for an accurate estimate.
Estimate your mortgage payment
Free, instant — includes taxes and insurance, not just principal and interest.