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US Mortgage Calculator (2025) — PITI, PMI & Amortization

Calculate monthly mortgage payments including taxes, insurance and PMI. See full amortization schedule.

Monthly payment
$2,628.97
PITI + PMI + HOA

20.0% of home price

PMI not required

Total monthly payment
$2,628.97
Principal, interest, taxes, insurance, PMI & HOA
Principal & interest
$2,128.97
Loan amount
$320,000.00
Total interest paid
$446,428.47
Total cost of home
$846,428.47

Monthly payment breakdown

Amortization schedule

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How to use the US Mortgage Calculator (2025) — PITI, PMI & Amortization

  1. 1

    Enter the home price

    Type the contract purchase price in dollars. Use the agreed offer (not the listing price) for resale homes; for new construction use the builder price including any selected upgrades.

  2. 2

    Set your down payment

    Enter your down payment in dollars or as a percentage. 20% avoids private mortgage insurance (PMI) on conventional loans; FHA accepts 3.5%, VA and USDA can go to 0% for eligible buyers.

  3. 3

    Choose loan term and interest rate

    Pick 30, 20, 15 or 10 years and enter the rate quoted by your lender. 30-year fixed is the US default; 15-year shaves roughly 60% off lifetime interest at the cost of higher monthly payments.

  4. 4

    Add property tax, insurance and HOA

    Enter annual property tax (typically 0.7-2.5% of value, varies by state), homeowner insurance and any HOA dues. The result then shows full PITI — the real number your lender will escrow.

  5. 5

    Test an extra principal scenario

    Add $100-$500 to the monthly payment to see how many years drop off the term. Even one extra payment per year can shorten a 30-year mortgage by 4-5 years and save tens of thousands in interest.

What this calculator does

A mortgage is a long-term secured loan used to buy property. In the United States, the dominant product is the 30-year fixed-rate mortgage where principal and interest stay constant for the entire term — a structure unique to the US, made possible by Fannie Mae and Freddie Mac securitization. 15-year fixed and 5/1, 7/1 and 10/1 ARMs (Adjustable Rate Mortgages) are common alternatives. A mortgage calculator answers the question every homebuyer asks first: "what will my monthly payment really be at this rate, with taxes and insurance included?" — without sitting through a loan officer call. Critically, it surfaces the lifetime interest cost. On a $400,000 30-year fixed at 7.0%, you pay $558,036 in interest alone — more than the home itself.

Formula

M = P × [ r(1+r)ⁿ ? ((1+r)ⁿ − 1) ]
M
Monthly principal & interest payment ($)
P
Loan amount = home price — down payment ($)
r
Monthly interest rate = annual rate ÷ 12
n
Total number of monthly payments = term in years × 12

This is the universal amortizing-loan formula used by every US lender. The numerator r(1+r)ⁿ converts future cashflows to present value; the denominator normalizes across the full term so each P&I payment is identical. PITI (the figure on your Loan Estimate) adds monthly property tax, homeowners insurance, PMI and HOA on top: PITI = M + (annual tax ÷ 12) + (annual insurance ÷ 12) + monthly PMI + monthly HOA. APR differs slightly from your nominal rate because it amortizes lender fees (origination, points, processing) into a single annualized figure under TILA Regulation Z.

Worked examples

Example: $450,000 home, 10% down, 7.25% over 30 years

You buy a $450,000 home with $45,000 down, financing $405,000 at 7.25% over 30 years.

Monthly rate r = 7.25 ÷ 12 ÷ 100 = 0.006042 Number of payments n = 30 × 12 = 360 Monthly P&I ≈ $2,762 Property tax ($5,400/yr) ÷ 12 = $450 Insurance ($1,500/yr) ÷ 12 = $125 PMI (0.6% of loan) = ~$203/month (until you reach 20% equity)

Total PITI ≈ $3,540/month

Over 30 years you would pay $589,358 in interest. Increasing your payment by $250/month (toward principal) would shorten the term by ~6 years and save roughly $135,000 in interest.

Example: comparing 30-year fixed vs 15-year fixed at $300,000

Same $300,000 loan, different terms:

30-year at 7.0%: $1,996/month P&I, $418,527 interest over the life of loan 15-year at 6.25%: $2,572/month P&I, $163,005 interest over the life of loan

The 15-year costs $576/month more but saves $255,522 in lifetime interest. For high-income borrowers who can comfortably afford the higher payment, this is one of the highest-ROI financial decisions available.

Common use cases

  • Calculating affordability before making an offer
  • Comparing 30-year vs 15-year fixed terms
  • Comparing fixed vs ARM (5/1, 7/1, 10/1) products
  • Modeling impact of buying down the rate with discount points (typically 1 point = 0.25% rate reduction)
  • Estimating PMI removal date and the savings once equity reaches 20% (78% LTV per HPA)
  • Evaluating refinancing — break-even point on closing costs vs monthly savings
  • Modeling biweekly payments (= 13 monthly payments per year) that knock 4-6 years off a 30-year loan
  • Understanding how property tax assessments and insurance hikes affect total PITI year-over-year

What affects the result

  • Credit score — FICO 760+ qualifies for the lowest conforming rates; below 620 typically means FHA, VA or non-QM lending
  • Loan-to-Value (LTV) — under 80% avoids PMI on conventional loans; FHA requires MIP regardless of LTV
  • Loan type — Conventional (Fannie/Freddie), FHA (3.5% down), VA (0% down for veterans), USDA (rural), Jumbo (above $806,500 conforming limit in 2025)
  • Debt-to-Income (DTI) — most lenders cap front-end at 28%, back-end at 36-43%. QM loans cap at 43% DTI.
  • Property location — drives property tax (NJ = ~2.5%, HI = ~0.3% of home value), insurance (FL/CA/TX coastal = 3-5x national avg), and HOA fees
  • Discount points — each point (1% of loan) typically buys ~0.25% off the rate; break-even is usually 5-7 years
  • Escrow requirements — most lenders require escrow for taxes & insurance when LTV > 80%
  • Mortgage Insurance — PMI on conventional (cancellable at 78% LTV); MIP on FHA (lifetime if down payment < 10%)

Tips

  • Aim for a 20% down payment when feasible — eliminates PMI, opens better rates, and signals strong borrower profile
  • Get pre-approved (not pre-qualified) — pre-approval involves credit pull and underwriting; sellers take it seriously
  • Lock your rate when you sign the purchase contract — most lenders offer 30-60 day rate locks free
  • Shop at least 3 lenders within a 14-day window — multiple credit pulls count as one for FICO purposes
  • Make biweekly payments instead of monthly — equivalent to 13 full payments per year, saves ~5 years on a 30-year loan
  • Recast (don't refinance) after a large lump-sum payment — most lenders charge ~$250 to recast, vs $5,000-$10,000 to refinance
  • Request PMI removal at 80% LTV via written request — federal law (HPA) auto-cancels at 78% LTV
  • Bundle home + auto insurance for ~10-25% discount on the homeowners portion

Mistakes to avoid

  • Comparing rates without including discount points — a "5.99%" rate with 2 points is effectively 6.5% on a small loan
  • Forgetting closing costs (2-5% of loan amount) — often $8,000-$25,000 at closing
  • Underestimating property tax — California limits via Prop 13, but most states reassess to market value at sale
  • Ignoring PMI — 0.5-1.5% of the loan annually until you reach 20% equity (which can take 8-12 years on a low down payment)
  • Skipping the home inspection ($400-$700) — finding $20,000 in repairs after closing is a common nightmare
  • Stretching to your DTI cap — life events (medical, layoff, child) become catastrophic at 43% DTI
  • Choosing an ARM without understanding the cap structure (typically 2/2/5 — 2% first adjustment, 2% periodic, 5% lifetime)
  • Buying below 20% down without a plan to remove PMI (refinance, recast, or wait for HPA auto-cancellation)

Frequently asked questions

Is this calculator accurate for US mortgages?

Yes — it uses the standard amortization formula every US lender, mortgage broker and CFPB-regulated calculator uses. Your Loan Estimate (Form H-24) will match this within $1-2/month. The only material difference is when lenders price in fee-driven APR adjustments under TILA Reg Z.

What is PITI?

PITI = Principal + Interest + Taxes + Insurance. It's the standard "true" monthly cost of homeownership your lender uses for affordability. When PMI and HOA apply, the full figure becomes PITIA (PITI + Association). Lenders qualify you on PITI/PITIA, not just principal & interest.

How much down payment do I need?

Conventional loans: 3% minimum (5% typical), 20% to avoid PMI. FHA: 3.5% with 580+ FICO. VA: 0% for eligible veterans. USDA: 0% for rural-zoned properties. Jumbo loans (above $806,500 in most areas) typically require 10-20% down with stricter underwriting.

How is PMI calculated?

Private Mortgage Insurance is typically 0.3% to 1.5% of the loan amount per year, divided into 12 monthly payments. The exact rate depends on FICO score, LTV and loan type. On a $400,000 loan at 0.6% PMI, you pay $200/month until you reach 20% equity — at which point federal law (HPA) requires automatic cancellation at 78% LTV based on the original purchase price.

What's the difference between APR and interest rate?

The interest rate is what determines your monthly P&I payment. APR is the annualized total cost including discount points, origination fees and lender fees, expressed as a single percentage under TILA Reg Z. APR is always equal to or higher than the rate. A 6.875% rate with $4,000 in fees might have a 7.05% APR on a $300,000 loan.

Should I pay discount points?

Each point costs 1% of your loan amount and typically buys ~0.25% off your rate. Calculate the break-even: monthly savings ÷ point cost = months to recoup. If you plan to keep the loan longer than the break-even (usually 5-7 years), points are profitable. If you might refinance or sell sooner, skip the points.

When can I remove PMI?

Three ways: (1) automatic cancellation at 78% LTV based on original amortization (federal HPA), (2) borrower-initiated request at 80% LTV with written request and possibly an appraisal, (3) refinance once your home value/equity has risen. FHA MIP is different — if your original down payment was less than 10%, MIP lasts the entire loan and only refinancing to a conventional loan removes it.

What is the conforming loan limit?

For 2025, the standard conforming loan limit set by FHFA is $806,500 in most counties, and up to $1,209,750 in high-cost areas (parts of CA, NY, HI, AK). Loans above this limit are jumbo loans with stricter underwriting (typically 700+ FICO, 10-20% down, larger reserves) and slightly higher rates.

Last reviewed:

Sources & references

This calculator provides illustrative estimates only. It is not a Loan Estimate and does not constitute regulated financial advice. Your actual rate, APR and monthly payment will be determined by a licensed lender after a full underwriting review under TILA-RESPA.

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