cost-calculation

Mortgage Payment Calculator (2026) — Monthly PITI Estimator

What will my mortgage payment actually be? The P+I number you see in rate quotes is only part of the story — your real monthly payment includes property taxes, homeowners insurance, PMI (if your down payment is under 20%), and any HOA dues. This calculator shows the full PITI number and breaks down exactly where each dollar goes.

This calculator requires JavaScript to run interactively. The methodology, worked examples, and FAQ below explain exactly how it works.

Educational estimate based on the inputs you entered — not financial, legal, or tax advice. Verify against your specific situation before acting on this output.

How it works

Methodology

Inputs

Home price: Purchase price of the property.
Down payment: Cash you're putting down. Less than 20% triggers PMI.
Loan term: Amortization length — 15, 20, or 30 years.
Interest rate: Annual interest rate on the loan. Get a rate lock from your lender — this calculator uses a fixed rate for estimation.
Annual property tax: Estimated annual property tax for the home. Varies significantly by county — check your county assessor's website.
Annual home insurance: Annual premium for homeowners insurance. National average ~$1,800/yr but varies widely by location and coverage.
Monthly HOA: Monthly homeowners association dues, if applicable.
Monthly PMI: Leave blank to auto-calculate at ~0.75% of loan amount annually. Override with your lender's actual PMI quote.

Formula

P+I = principal × (r(1+r)^n) / ((1+r)^n − 1) r = annual rate / 12 / 100 n = term in months PITI = P+I + (annual tax / 12) + (annual insurance / 12) + monthly HOA + monthly PMI Auto PMI = loan amount × 0.75% / 12 (when LTV > 80% and PMI not overridden) Total interest = (P+I × n) − principal

Assumptions

Fixed-rate mortgage assumed. ARM loans will have a different initial rate that adjusts periodically.
Auto PMI estimate uses 0.75% annual — actual PMI rate varies by credit score, LTV, and lender (typical range: 0.5% – 1.5% annually).
Property tax is estimated as a fixed annual amount — actual tax varies by county, assessed value, and exemptions.
Escrow accounts for taxes and insurance are managed by the lender — actual monthly escrow amounts may differ from estimates.
Rate context: Freddie Mac's weekly Primary Mortgage Market Survey put the 30-year fixed rate at 6.65% on loans as of August 20, 2026 — use it as a market reference point, not a quote; your own rate depends on credit profile, loan size, and lock timing.
Market-scale context: the New York Fed's Q2 2026 Household Debt and Credit Report counted $505 billion in loans newly originated as mortgages in the second quarter of 2026 alone, against $13.12 trillion in loans outstanding nationally against residential real estate.

Sources

Worked examples

Typical first-home purchase — 20% down

Home price: $400,000
Down payment: $80,000 (20%)
Loan term: 30 years
Interest rate: 7.0%
Annual property tax: $4,800
Annual insurance: $1,800

Monthly P+I ≈ $2,129. Full PITI ≈ $2,679/mo (adding $400 tax + $150 insurance). No PMI at 20% down. Total interest over 30 years ≈ $446,000.

Lower down payment — PMI kicks in

Home price: $350,000
Down payment: $35,000 (10%)
Loan term: 30 years
Interest rate: 7.0%
Annual property tax: $4,200
Annual insurance: $1,800

Monthly P+I ≈ $2,090. Auto PMI adds ~$197/mo (0.75% of $315K). Full PITI ≈ $2,787/mo. PMI drops once LTV hits 80% (~$280K balance).

Frequently asked

Questions readers ask

What does PITI mean in a mortgage payment? +

PITI stands for Principal, Interest, Taxes, and Insurance — the four components that make up a full monthly mortgage payment. P+I is the loan-repayment portion; taxes and insurance are typically escrowed by the lender and paid from a reserve account. PMI (private mortgage insurance) and HOA dues are additional if applicable.

How is a monthly mortgage payment calculated? +

The P+I portion uses standard amortization: monthly payment = principal × (r(1+r)^n) / ((1+r)^n − 1), where r is the monthly interest rate (annual rate ÷ 12) and n is the total number of payments. Property tax and insurance are divided by 12 and added monthly to the escrow portion.

When is PMI required? +

PMI (private mortgage insurance) is typically required when your down payment is less than 20% of the home price — meaning your loan-to-value (LTV) ratio exceeds 80%. PMI rates typically run 0.5% – 1.5% of the loan amount annually, depending on your credit score and LTV. Under the Homeowners Protection Act (12 U.S.C. § 4901), you can request PMI cancellation once you reach 80% LTV through payments or appreciation.

How much of my payment goes to interest vs principal early on? +

In the early years of a 30-year mortgage, the vast majority of each payment is interest. On a $320,000 loan at 7%, your first payment is roughly $2,129 — about $1,867 interest and only $262 principal. The split gradually shifts toward principal as the balance decreases. This is standard loan amortization — the calculator shows your total interest over the full term.

What is a Loan Estimate and when do I get one? +

A Loan Estimate is a standardized three-page document your lender is required to provide within three business days of receiving your mortgage application, per CFPB / RESPA rules (12 CFR Part 1026). It includes the estimated interest rate, monthly payment, and closing costs. The Loan Estimate is the binding reference number — this calculator is an educational estimate only.

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This tool is for educational purposes only and is not financial, legal, or tax advice. Final terms and eligibility depend on lender underwriting; consult a tax professional before acting on tax-tool output. ClearValue Lending is a funding platform.

https://clearvaluelending.com/tools/mortgage-payment-calculator