Why is my real mortgage quote higher than this?

Likely PMI (private mortgage insurance, required if you put down less than 20%), HOA fees, or an escrow cushion. Add those separately.

Should I choose 15 or 30 years?

15-year saves enormous interest but roughly doubles the monthly payment. 30-year is safer for cash flow and lets you invest the difference. Run both and compare.

How much house can I afford?

Conservative rule: PITI should be 28% or less of gross monthly income (the 'front-end ratio'). Total debt payments including PITI should be 36% or less of gross income (the 'back-end ratio'). Lenders may approve up to 43% back-end (qualified mortgage rule), but stretching past 36% leaves little room for unexpected expenses. On $100K gross income: PITI ceiling of $2,333/month, total-debt ceiling of $3,000/month. With 20% down at 6.5%, that's roughly a $385K home.

What's the real cost of buying a $400K house?

Down payment: $80K (20%). Closing costs: $8-12K (2-3% of price, includes lender fees, title insurance, escrow setup, prepaid taxes). Inspection: $400-600. Appraisal: $500-800. First-year ownership extras: moving ($1-3K), repairs / upgrades ($5-20K), property tax / insurance prepays already in closing. Plus 30 years of $2,547/month PITI = $917K total. The 'real' cost of a $400K home over 30 years is roughly $1M including down payment, closing, and total payments. Equity built: full home value, but only after 30 years of payments.

What is PMI and how do I avoid it?

Private Mortgage Insurance protects the lender if you default; required for conventional loans with less than 20% down, FHA loans always carry MIP. Cost: 0.3-1.5% of loan annually, paid monthly with the mortgage payment. On a $300K loan with 10% down, expect $80-180/month in PMI. Avoid by: putting 20%+ down, taking a piggyback loan structure (80/10/10 — first mortgage 80%, second mortgage 10%, down 10%), or using a VA / USDA loan if eligible (those don't require PMI). PMI auto-cancels at 78% LTV; you can request cancellation at 80% LTV.

What about HOA fees and other ongoing costs?

HOA fees: $100-500/month for typical condo or planned community, $500-1500+ for high-end buildings or amenity-rich communities. Utilities: $100-400/month for typical 2,000 sqft home. Maintenance reserves: budget 1-2% of home value annually for repairs and replacements ($4-8K/year on a $400K home). Total monthly cost of homeownership beyond PITI is often $300-1000/month. The '28% rule' assumes you can afford this on top of PITI; budget conservatively to avoid being house-poor.

Is this mortgage calculator accurate compared to my lender's quote?

P&I (principal + interest) will match your lender to the penny — it uses the same RFC-standard amortization formula. Where calculator estimates can differ from your lender's Loan Estimate (LE): (1) Property tax — calculator uses your inputted rate; LE uses the actual taxing authority's mill rate which can be 0.1-0.4% off. (2) Insurance — calculator uses your estimated annual premium ÷ 12; LE uses a specific quote from a specific carrier. (3) PMI/MIP — only included if you specified it; LE always includes it for sub-20% down. (4) Lender fees — calculator doesn't model origination fees, points, or prepaid items; LE does. Expected variance: $1-50/month between calculator and LE for the same inputs. If yours differs by more than $100/month, double-check rate, term, and that you've included property tax and insurance.

How do I calculate a mortgage payment manually?

Use the amortization formula: M = P × [r(1+r)^n] / [(1+r)^n - 1]. P = loan amount, r = monthly rate (annual ÷ 12), n = number of monthly payments (years × 12). Example: $320,000 loan at 6.5% annual for 30 years. r = 0.065 / 12 = 0.00542. n = 360. (1.00542)^360 = 7.026. M = 320000 × (0.00542 × 7.026) / (7.026 - 1) = 320000 × 0.03808 / 6.026 ≈ $2,022/month. Add property tax (home value × tax rate ÷ 12) and insurance (annual premium ÷ 12) to get PITI. Excel/Sheets: =PMT(rate/12, years*12, -loanAmount). For an amortization schedule (interest vs principal each month): each month's interest = remaining balance × monthly rate; principal = payment - interest; new balance = old balance - principal.

What's the best way to lower my mortgage payment?

Five real options, ranked by impact: (1) Refinance to a lower rate — drops monthly payment immediately if rates fell. Break-even is closing costs ÷ monthly savings (typically 2-3 years). Worth it if rate drops 0.75%+ and you'll stay 3+ years. (2) Extend the term (e.g., 30 to 40 years if available, or refi from a 15-year to a 30-year) — drops payment substantially but adds total interest. (3) Drop PMI by reaching 20% equity — call lender and request cancellation at 80% LTV; saves $80-200/month on a typical loan. (4) Recast the loan after a lump-sum payment — bank reduces monthly payment based on new lower balance, same rate. Costs $250-500 setup; available on most conventional loans, not most government loans. (5) Appeal your property tax assessment — if comparable homes assessed lower than yours, file an appeal. Can save $50-200/month if your assessment was inflated.

Money & Finance · Free tool

Mortgage Calculator

Calculate your real monthly mortgage cost. Get a full PITI breakdown covering principal, interest, taxes, and insurance for FHA, VA, and conventional loans online.

Updated June 2026

Home price ($)Down payment (%)Rate (%)Term (years)Property tax (% / yr)Insurance ($ / yr)HOA ($ / mo)PMI (% / yr) (waived at 20%+ down)

Monthly payment (all in)

$2,576

P&I

$2,076

Property tax

$400

Insurance

$100

Total cost over 30 years

Down payment: $80,000
Loan amount: $320,000
Total interest: $427,185
Total cost of home: $1,007,185

P&I uses the standard fixed-rate amortization formula. PMI assumes conventional rules (drops off when balance ≤ 80% of original price). Taxes, insurance, and HOA are held flat — in reality they drift up over time.

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What it does

A free mortgage calculator with PITI: Principal, Interest, Taxes, and Insurance — the four components of an actual monthly mortgage payment. Most calculators only show principal+interest and leave you surprised at closing. This one includes the rest.

Your real monthly mortgage bill is 25-40% higher than the P&I number. Property taxes vary by locality (1-2.5% of home value per year). Homeowners insurance is another $1,200- $2,500 per year. Always budget against PITI, not advertised principal+interest.

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Example input & output

Input

Home price: $400,000
Down payment: 20%
Rate: 6.5%
Term: 30 years
Property tax: 1.2%
Insurance: $1,500/yr

Output

P&I: $2,022/mo
Taxes: $400/mo
Insurance: $125/mo
Total PITI: $2,547/mo

The advertised P&I number is 21% lower than the real monthly cost — always budget against PITI.

How to use it

Enter home price and down payment percent.
Enter mortgage rate and term (usually 30 years).
Estimate property tax rate and annual insurance.
Read your full PITI monthly payment.

How it works

Key takeaways

Your real monthly cost (PITI: principal, interest, taxes, insurance) is typically 25-40% higher than the advertised P&I number.
On a $400K loan at 6.5% over 30 years, you pay $510K in interest — more than the home itself. The amortization curve is heavily front-loaded.
Prepaying $200/month in years 1-7 saves more interest than the same $200 in years 20-25, because early dollars skip the most years of accruing interest.
Compare APR-to-APR across lenders, never raw interest rate. APR folds in fees and is the federally-mandated comparison number; raw rate alone hides the cost.

Principal and interest use the standard amortization formula M = P × [r(1+r)^n] / [(1+r)^n - 1]. Taxes are calculated as (home price × tax rate) / 12. Insurance is (annual premium) / 12. The four components sum to PITI — the number you actually pay each month.

Advanced: amortization mechanics most calculators skip

The amortization curve is heavily front-loaded. On a 30-year $320,000 loan at 6.5%, your first month’s payment of $2,022 splits as $1,733 interest / $289 principal. By year 15, that flips to roughly $1,000 each. By year 30, almost all of the payment retires principal. This is why prepayment in years 1-7 is dramatically more impactful than the same dollar prepayment in years 20-25 — you’re skipping years of interest. Use the mortgage payoff accelerator to model how an extra $200/month for the first 5 years saves more than the same $200 for the last 5 years.

Property-tax math has its own complexity. Most calculators use the assessed-value rate straight, but real property tax is (assessed value) × (mill rate) where assessed value is often 80-90% of market price (varies by state). Some states (California Prop 13, Florida homestead) cap annual increases at 2-3% even if market value rises faster — which means your effective tax rate drops over time if you stay in the home long enough. For a deeper read, see property tax calculator and the APR vs APY glossary.

How this compares to alternatives

vs Bankrate / NerdWallet calculators: those typically include a PMI line and may default to including PMI even at 20% down (they assume you might want to model lower-down scenarios). Our PITI focuses on what you actually pay; for PMI specifically, the dedicated PMI calculator shows monthly cost plus the auto-cancellation date at 78% LTV. vs your lender’s Loan Estimate: Loan Estimate is a binding 3-page disclosure (TRID-mandated since 2015) showing actual fees and rate. Calculator estimates are typically within ±5% of LE numbers; differences come from lender-specific fees, points, and local government fees. vs spreadsheet: Excel’s PMT() function works for monthly P&I but you build the tax, insurance, and PMI lines manually.

Common mistakes when using this tool

Treating P&I as the “real” payment. Real monthly cost is PITI plus possibly PMI plus HOA. The advertised P&I number is typically 25-40% lower than the actual check you write each month.
Underestimating closing costs. Closing is typically 2-5% of loan (varies by state due to transfer taxes; see the closing cost estimator). On a $320K loan that’s $6,400-16,000 cash needed at closing on top of down payment.
Ignoring rate-lock timing. Rates move daily. A locked rate from 45 days ago may be 0.25-0.75% off current; that’s $50-150/month difference on a typical loan. Always run the calculator with the rate quoted on your Loan Estimate, not last week’s headline.
Skipping the affordability check. Just because a calculator says you CAN qualify for $X doesn’t mean you should buy that much. The 28/36 rule (PITI ≤ 28% of gross income, total debt ≤ 36%) is the floor; many financial planners suggest 25/30 or even 20/30 for safety margin against job loss or rate adjustment.
Not modeling 15-year alternative. A 15-year mortgage at the same rate cuts total interest by ~60% but doubles the monthly payment. Many buyers could afford 15-year and never run the comparison. See the 15-year vs 30-year guide for the framework.

Learn more about mortgages

How mortgage interest actually works — why your first 7 years are mostly interest, and what that means for refinance math.
15-year vs 30-year mortgage — the real interest savings, payment differences, and which makes sense by life stage.
How much house can I afford? — the 28/36 rule, why lender max approval is too aggressive, and PITI vs P&I.
APR vs APY glossary — why mortgage quotes use APR and how to compare offers fairly.

When to use this tool

House-hunting — sanity-check the affordability of listings.
Refinancing — compare current PITI against a new rate.
Deciding between putting 10%, 15%, or 20% down.

When not to use it

Adjustable-rate mortgages (ARMs) — this assumes a fixed rate for the full term.
Loans with PMI modeled separately — this calculator folds insurance into a single line.
HOA fees, utilities, or maintenance reserves — those sit on top of PITI.

Common use cases

Estimating the real monthly cost of a home before making an offer.
Comparing 15-year vs 30-year mortgage terms.
Checking whether a specific home fits the 28% rule (PITI ≤ 28% of gross income).
Understanding how a rate change of 0.5% impacts monthly budget.

Frequently asked questions

Why is my real mortgage quote higher than this?: Likely PMI (private mortgage insurance, required if you put down less than 20%), HOA fees, or an escrow cushion. Add those separately.
Should I choose 15 or 30 years?: 15-year saves enormous interest but roughly doubles the monthly payment. 30-year is safer for cash flow and lets you invest the difference. Run both and compare.
How much house can I afford?: Conservative rule: PITI should be 28% or less of gross monthly income (the 'front-end ratio'). Total debt payments including PITI should be 36% or less of gross income (the 'back-end ratio'). Lenders may approve up to 43% back-end (qualified mortgage rule), but stretching past 36% leaves little room for unexpected expenses. On $100K gross income: PITI ceiling of $2,333/month, total-debt ceiling of $3,000/month. With 20% down at 6.5%, that's roughly a $385K home.
What's the real cost of buying a $400K house?: Down payment: $80K (20%). Closing costs: $8-12K (2-3% of price, includes lender fees, title insurance, escrow setup, prepaid taxes). Inspection: $400-600. Appraisal: $500-800. First-year ownership extras: moving ($1-3K), repairs / upgrades ($5-20K), property tax / insurance prepays already in closing. Plus 30 years of $2,547/month PITI = $917K total. The 'real' cost of a $400K home over 30 years is roughly $1M including down payment, closing, and total payments. Equity built: full home value, but only after 30 years of payments.
What is PMI and how do I avoid it?: Private Mortgage Insurance protects the lender if you default; required for conventional loans with less than 20% down, FHA loans always carry MIP. Cost: 0.3-1.5% of loan annually, paid monthly with the mortgage payment. On a $300K loan with 10% down, expect $80-180/month in PMI. Avoid by: putting 20%+ down, taking a piggyback loan structure (80/10/10 — first mortgage 80%, second mortgage 10%, down 10%), or using a VA / USDA loan if eligible (those don't require PMI). PMI auto-cancels at 78% LTV; you can request cancellation at 80% LTV.
What about HOA fees and other ongoing costs?: HOA fees: $100-500/month for typical condo or planned community, $500-1500+ for high-end buildings or amenity-rich communities. Utilities: $100-400/month for typical 2,000 sqft home. Maintenance reserves: budget 1-2% of home value annually for repairs and replacements ($4-8K/year on a $400K home). Total monthly cost of homeownership beyond PITI is often $300-1000/month. The '28% rule' assumes you can afford this on top of PITI; budget conservatively to avoid being house-poor.
Is this mortgage calculator accurate compared to my lender's quote?: P&I (principal + interest) will match your lender to the penny — it uses the same RFC-standard amortization formula. Where calculator estimates can differ from your lender's Loan Estimate (LE): (1) Property tax — calculator uses your inputted rate; LE uses the actual taxing authority's mill rate which can be 0.1-0.4% off. (2) Insurance — calculator uses your estimated annual premium ÷ 12; LE uses a specific quote from a specific carrier. (3) PMI/MIP — only included if you specified it; LE always includes it for sub-20% down. (4) Lender fees — calculator doesn't model origination fees, points, or prepaid items; LE does. Expected variance: $1-50/month between calculator and LE for the same inputs. If yours differs by more than $100/month, double-check rate, term, and that you've included property tax and insurance.
How do I calculate a mortgage payment manually?: Use the amortization formula: M = P × [r(1+r)^n] / [(1+r)^n - 1]. P = loan amount, r = monthly rate (annual ÷ 12), n = number of monthly payments (years × 12). Example: $320,000 loan at 6.5% annual for 30 years. r = 0.065 / 12 = 0.00542. n = 360. (1.00542)^360 = 7.026. M = 320000 × (0.00542 × 7.026) / (7.026 - 1) = 320000 × 0.03808 / 6.026 ≈ $2,022/month. Add property tax (home value × tax rate ÷ 12) and insurance (annual premium ÷ 12) to get PITI. Excel/Sheets: =PMT(rate/12, years*12, -loanAmount). For an amortization schedule (interest vs principal each month): each month's interest = remaining balance × monthly rate; principal = payment - interest; new balance = old balance - principal.
What's the best way to lower my mortgage payment?: Five real options, ranked by impact: (1) Refinance to a lower rate — drops monthly payment immediately if rates fell. Break-even is closing costs ÷ monthly savings (typically 2-3 years). Worth it if rate drops 0.75%+ and you'll stay 3+ years. (2) Extend the term (e.g., 30 to 40 years if available, or refi from a 15-year to a 30-year) — drops payment substantially but adds total interest. (3) Drop PMI by reaching 20% equity — call lender and request cancellation at 80% LTV; saves $80-200/month on a typical loan. (4) Recast the loan after a lump-sum payment — bank reduces monthly payment based on new lower balance, same rate. Costs $250-500 setup; available on most conventional loans, not most government loans. (5) Appeal your property tax assessment — if comparable homes assessed lower than yours, file an appeal. Can save $50-200/month if your assessment was inflated.

See how this compares

Head-to-headFHA vs conventional loanFHA vs conventional mortgage: down payment, credit score, PMI rules, and total cost. Use our free FHA and mortgage calculators to model your own numbers.

Show the math + sources

Formula

Monthly payment M = P × [r(1+r)^n] / [(1+r)^n − 1], where P = principal, r = annual rate ÷ 12, n = total months. Total interest = M × n − P.

What this assumes

Fixed-rate, fully amortizing loan with monthly compounding. Excludes property tax, homeowners insurance, PMI, HOA, and points unless explicitly entered.

Sources

Methodology last verified: 2026-04-30

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