Mortgage Payment Calculator
Calculate your monthly mortgage payment with PITI (Principal, Interest, Taxes & Insurance). Compare fixed and adjustable rates, view amortization schedules, and explore different down payment and loan term scenarios.
Loan Details
Down Payment Amount: $80,000.00
Additional Costs
Compare Rate Types
Monthly Mortgage Payment
Fixed RatePrincipal + Interest + Taxes + Insurance + HOA
Loan Summary
Amortization Schedule (First 12 Months)
| Month | Payment | Principal | Interest | Balance |
|---|---|---|---|---|
| Enter your loan details to see the schedule | ||||
Understanding Your Mortgage Payment
Your monthly mortgage payment is one of the most significant recurring expenses you'll have as a homeowner. Understanding what goes into it can help you budget properly and make informed decisions about your home purchase or refinance.
How the Calculator Works
We use the standard amortization formula to calculate your monthly principal and interest payment:
- M = Monthly mortgage payment (principal + interest)
- P = Loan principal amount (home price − down payment)
- r = Monthly interest rate (annual rate ÷ 12)
- n = Number of payments (years × 12)
Who Is This Calculator For?
This calculator is designed for anyone looking to:
- Estimate monthly payments for a home purchase
- Compare different down payment amounts
- Evaluate fixed-rate vs adjustable-rate mortgages
- Understand how property taxes and insurance affect total payment
- Plan for a refinance by comparing loan terms
- Get a preview of their amortization schedule
Important Notes
Keep these factors in mind when using this calculator:
- Private Mortgage Insurance (PMI) may be required for down payments below 20%
- Property taxes vary significantly by location and can change annually
- Home insurance premiums depend on coverage amount, deductible, and location
- HOA fees apply to condominiums, townhomes, and some planned communities
- Actual loan terms may differ based on lender requirements and creditworthiness
Frequently Asked Questions
How is my monthly mortgage payment calculated?
Your monthly mortgage payment, often called PITI, includes four components: Principal (loan balance), Interest (cost of borrowing), Taxes (property tax), and Insurance (homeowners insurance). Our calculator uses the standard amortization formula M = P * [r(1+r)^n] / [(1+r)^n - 1] to calculate your principal and interest payment, then adds monthly tax, insurance, and HOA dues.
What is the difference between a fixed-rate and adjustable-rate mortgage?
A fixed-rate mortgage has an interest rate that stays the same for the entire loan term, providing predictable monthly payments. An adjustable-rate mortgage (ARM) has a rate that can change after an initial fixed period (typically 5, 7, or 10 years). ARMs often start with lower rates but carry the risk of higher payments in the future. Use our comparison tool in the calculator to see the difference.
Why does my mortgage payment not go down each month?
With a fixed-rate mortgage, your total monthly payment stays the same, but the composition changes over time. Early payments are mostly interest, while later payments are mostly principal. This is because interest is calculated on the remaining loan balance. As you pay down the principal, the interest portion decreases and the principal portion increases — but the total payment remains constant.
How does a larger down payment affect my mortgage?
A larger down payment reduces your loan amount, which lowers your monthly principal and interest payment. It may also help you qualify for a lower interest rate, eliminate private mortgage insurance (PMI), and save significantly on total interest paid over the life of the loan. Generally, a 20% down payment avoids PMI requirements.
What is included in PITI?
PITI stands for Principal, Interest, Taxes, and Insurance. Principal and interest make up your loan payment. Taxes are your annual property tax divided by 12. Insurance is your annual homeowners insurance premium divided by 12. If you have less than 20% down, PMI may also be included. HOA fees are calculated separately but added to your total monthly housing payment.
How does the amortization schedule work?
An amortization schedule shows how each monthly payment is split between principal and interest over the life of your loan. In the early years, most of your payment goes toward interest. Over time, the principal portion grows and the interest portion shrinks. Our calculator shows the first 12 months of your amortization schedule so you can see exactly how your payments are applied.
Should I use a 15-year or 30-year mortgage?
A 15-year mortgage typically has lower interest rates and you pay less total interest, but your monthly payments are higher. A 30-year mortgage has lower monthly payments but you pay more interest over time. The right choice depends on your financial goals, cash flow, and how long you plan to stay in the home. Use our calculator to compare both options side by side.
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Disclaimer
This calculator provides estimates for educational purposes only. Results are based on the information you enter and do not constitute financial advice. Actual mortgage terms, rates, and payments may vary based on lender requirements, credit profile, property type, and market conditions. Consult a licensed mortgage professional before making financial decisions. WikEst is not a lender, broker, or financial advisor.