Mortgage Payment Calculator (PITI)
Monthly mortgage payment including principal, interest, property tax, insurance, PMI and HOA, total interest over the term, when PMI drops off, the effect of extra payments and the income needed — any currency.
| Principal & interest | — |
|---|---|
| Property tax | — |
| Insurance | — |
| Mortgage insurance (PMI) | — |
| HOA | — |
| Loan amount / LTV | — |
| Total interest over the term | — |
| With the extra payment | — |
| Income needed (28% front-end rule) | — |
Amortisation (every 5 years)
In short
A mortgage payment has four parts (PITI): principal and interest from the amortising formula, property tax, home insurance, and mortgage insurance when the down payment is under 20%. A 360,000 loan at 6.5% over 30 years is 2,275 for principal and interest; with 1.1% tax, 1,500 insurance and 0.6% PMI the full payment is about 2,947, and PMI ends once the balance reaches 80% of the price.
Who this is for: Home buyers anywhere estimating the full monthly cost of a mortgage before applying.
What is in a mortgage payment
- Principal & interest — the loan itself, fixed for a fixed-rate loan. Early payments are mostly interest; the split flips around the mid-point of the term.
- Taxes and insurance — usually collected monthly into escrow by US lenders; paid separately in the UK (council tax) and the UAE (service charges). Enter them to see the real monthly cost.
- PMI — private mortgage insurance on US conventional loans with less than 20% down, typically 0.3–1.5% of the loan a year; it ends once the balance falls to 80% of the original price (automatically at 78%). FHA loans use a different, longer-lasting premium.
- Extra principal — even 100 a month on a 30-year loan removes years; the extra line shows exactly how many.
- 28/36 rule: lenders like housing costs under 28% of gross income and all debt payments under 36%.
See also: UK Mortgage Affordability Calculator.
Assumptions
- Principal and interest from the amortising formula; tax = price × rate ÷ 12; insurance ÷ 12; PMI = loan × rate ÷ 12 while the down payment is under 20%.
- PMI drop-off month = first month the scheduled balance falls to 80% of the price (no extra payments).
- Extra-payment schedule applies the extra to principal every month; income rule = 28% of gross income.
Worked example
Loan 360,000 → principal and interest 2,275, tax 367, insurance 125, PMI 180 → 2,947 a month. PMI drops off around year 8. Total interest over 30 years about 459,000. Adding 200 a month extra pays the loan off in just under 24 years and saves roughly 109,000 of interest. Income needed under the 28% rule: about 126,000 a year.
Frequently asked questions
How much is the mortgage payment on 300,000?
At 6.5% over 30 years, 1,896 for principal and interest; add tax, insurance and any PMI for the full monthly cost.
How do I get rid of PMI?
Reach 80% loan-to-value by paying down the balance or through a new appraisal after prices rise, then ask the lender to cancel it; it ends automatically at 78%.
Is a 15-year mortgage better?
It costs far less interest but the payment is much higher; the 15 vs 30 calculator compares both with the invest-the-difference case.
Does this work outside the US?
Yes — set PMI to 0 and use the local annual property charge in the tax field; the arithmetic is the same for UK, UAE, Canadian or Australian repayment mortgages.
What is PITI?
Principal, Interest, Taxes and Insurance — the four parts of a typical US mortgage payment; PMI and HOA dues come on top.
How much income do I need for a 2,500 mortgage payment?
About 107,000 a year gross under the 28% rule, or less if you have no other debt and the lender uses a 36% back-end ratio.
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