Mortgage Calculator

Buying a home is one of the most significant financial decisions you'll ever make. Understanding your exact monthly obligation—including the property taxes and insurance that lenders require—is critical to determining how much house you can actually afford. Our free Mortgage Calculator breaks down these costs instantly.

Decoding Your Monthly Payment (PITI)

When lenders talk about your mortgage payment, they usually refer to PITI, an acronym that stands for:

• Principal (P): The portion of your payment that goes toward paying down the actual loan amount you borrowed.
• Interest (I): The cost charged by the lender for borrowing the money, calculated based on your interest rate.
• Taxes (T): Property taxes assessed by your local government, usually divided into 12 monthly installments.
• Insurance (I): Homeowners insurance required by lenders to protect the property against damage. If your down payment is less than 20%, you may also have to pay Private Mortgage Insurance (PMI).

How to Use This Tool

Simply enter your target Home Price and how much you plan to put down as a Down Payment. Adjust the Loan Term (typically 15 or 30 years) and the prevailing Interest Rate. If you know your estimated yearly property taxes and homeowners insurance, add those in the optional section to get a completely accurate picture of your total monthly cash flow requirement.