Mortgage Payment Calculator with Taxes & Insurance

Your total monthly payment (PITI) includes four components: principal, interest, taxes, and insurance. The base payment uses the standard amortization formula: M = P[r(1+r)^n] / [(1+r)^n − 1], where P is the loan amount, r is the monthly interest rate (annual rate / 12), and n is the total number of payments. Property tax is divided by 12 and added monthly, as is homeowners insurance. For example, a $300,000 loan at 6.5% for 30 years yields a base payment of $1,896. Add $250/month in property tax and $125/month in insurance, and the total PITI is $2,271/month.

Lenders use your PITI — Principal, Interest, Taxes, and Insurance — to determine how much house you can afford. Most lenders require your total PITI to be no more than 28% of your gross monthly income (the front-end ratio). If you also have an HOA fee, that amount is added to PITI for qualification purposes. Knowing your full monthly obligation helps you budget accurately and avoid surprises after closing.