Mortgage Calculator (PITI & Amortization)
Accurately estimate complete monthly housing payments (PITI) based on purchase price, down payment percentage, interest rate, loan term, property taxes, and home insurance.
What is the Mortgage Calculator (PITI & Amortization)?
This tool calculates monthly mortgage payments (PITI) including principal, interest, property taxes, homeowners insurance, and private mortgage insurance (PMI).
Reducing-Balance Fixed Rate Amortization
Mortgage payments use the standard reducing-balance annuity formula: $M = P rac{r(1+r)^n}{(1+r)^n - 1}$, where $P$ is principal, $r$ is monthly interest rate, and $n$ is total months. In early years, because the outstanding balance is high, the lionโs share of each monthly payment covers interest. As the principal drops, interest decreases and principal repayment accelerates.
How to Use the Mortgage Calculator (PITI & Amortization)
Enter Home Price & Down Payment
Input the property price and your planned down payment (e.g. 10% or 20%).
Configure Loan Terms
Select loan duration (typically 30 years or 15 years) and prevailing interest rate.
Add Taxes & Insurance
Enter estimated local property tax rates and insurance premiums to see the true PITI total.
Inspect Amortization Schedule
Check how monthly payments shift from interest-heavy in early years to principal-heavy in later years.
Key Settings & Parameters
| Setting | What It Controls | Recommended Default |
|---|---|---|
| Loan Term (15 vs 30 Years) | A 15-year loan has higher monthly payments but saves tens of thousands in lifetime interest and builds equity twice as fast. | 30-year for lower monthly obligation, 15-year for minimum lifetime cost |
| Property Tax Rate | Local annual county/city taxes, typically between 0.5% and 2.5% of assessed property value. | Check local municipal assessor records |
Common Pitfalls to Avoid
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• Budgeting only for Principal & InterestProperty taxes, insurance, and HOA fees often add 30% to 50% on top of the base loan payment. Always calculate full PITI.
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• Forgetting about PMI on low down paymentsIf putting down less than 20%, budget an additional 0.3% to 1.0% of the loan amount annually for PMI.
Pro Tips for Best Results
- Making just one extra mortgage payment per year can shorten a 30-year mortgage by over 4 years and save significant interest.
Local Processing Guarantee
Zero server uploads. Your personal salary, target home price, and down payment savings remain confidential.
When to Use
- Evaluating home affordability and budget limits before touring real estate.
- Comparing 15-year vs 30-year mortgages to evaluate interest savings vs monthly cash flow.
- Analyzing the impact of extra principal payments on loan payoff dates.
- • Calculations assume a fixed interest rate throughout the entire loan term and do not factor in closing costs or discount points.