Mortgage Calculator
Estimate your monthly mortgage payment including principal, interest, property tax, and insurance (PITI).
How to use Mortgage Calculator
- 1Enter home details
Home price, down payment, term, and interest rate.
- 2Add tax & insurance
Annual property tax and homeowners insurance, if you want PITI.
- 3See estimate
Monthly payment breakdown updates live.
About Mortgage Calculator
A home is the largest purchase most people make in their lives, and the monthly mortgage payment includes far more than just principal and interest. The PITI breakdown — Principal, Interest, Tax, and Insurance — captures the four standard components of a typical monthly payment, and when your down payment is less than 20%, Private Mortgage Insurance (PMI) adds a fifth.
Each component varies independently: interest depends on your credit score and current market rates, property tax depends on your state and county (typically 0.5% to 2.5% of home value annually), insurance depends on home value and area risk, and PMI is roughly 0.3% to 1.5% of the loan amount annually. Utilify's calculator breaks all of these out separately so you understand exactly where each dollar of your monthly payment goes — and lets you toggle PMI on or off to see the impact of a 20% down-payment goal.
PMI is worth understanding because it is the one cost you can deliberately avoid or remove. Lenders require it when your down payment is under 20% because the loan is riskier to them — but it protects the lender, not you. The good news is that it is not permanent: as you pay down the balance (or the home appreciates) and your loan-to-value ratio improves, you can typically request cancellation at 80% LTV, and lenders are generally required to drop it automatically at 78%.
The rate you lock has an outsized effect over a 30-year term. Because interest compounds across hundreds of payments, even a 0.25% difference between two lender offers can add up to tens of thousands of dollars over the life of the loan. That is why it pays to shop multiple lenders and to weigh paying discount points up front against the monthly savings they buy.
Two costs this estimate intentionally leaves out are HOA dues and closing costs. Homeowners association fees, where they apply, are billed separately and can run from modest to substantial, and closing costs (typically 2–5% of the purchase price) are a one-time expense at signing rather than part of the monthly payment. Factor both into your overall budget alongside the PITI figure this tool produces.
15-year vs 30-year on the same $400,000 loan
The term you choose changes the economics more than most rate shopping does. Here is the same loan run through the amortization formula both ways (15-year rates typically price about half a point below 30-year):
| 30-year @ 6.75% | 15-year @ 6.15% | |
|---|---|---|
| Monthly payment (P&I) | ≈ $2,594 | ≈ $3,408 |
| Total interest over the loan | ≈ $534,000 | ≈ $213,000 |
| Interest saved vs 30-year | — | ≈ $320,000 |
| The trade-off | Lower payment, more flexibility, far more interest | $814 more per month buys the house in half the time |
Figures come straight from the amortization formula with illustrative rates — plug your own numbers into the calculator above to see your exact split.
When to use Mortgage Calculator
- House-hunting budget
Plug in different home prices to find what monthly payment you are actually comfortable with.
- Down payment trade-off
See how much PMI you would pay annually with 10% down vs paying 20% down and skipping it.
- Rate shopping
Quickly compare lender offers — a 0.25% rate difference can equal tens of thousands over 30 years.
Mortgage-shopping mistakes that cost real money
- Comparing interest rate instead of APR
The quoted rate ignores points, origination fees, and other closing costs. APR folds them in, which is why two "6.75%" offers can differ by thousands of dollars. Always compare lender offers on APR.
- Budgeting on P&I instead of PITI
The principal-and-interest figure is not your housing cost. Property tax, homeowners insurance, PMI under 20% down, and HOA dues commonly add 25–50% on top. It is the reason we built this calculator to ask for tax and insurance instead of stopping at the loan terms — budget on the full PITI number it produces.
- Assuming extra payments hit the principal
Many servicers apply an unmarked extra payment to next month’s installment — interest included — rather than to principal. Every servicer handles this differently, so check your servicer’s specific process for designating a payment "principal only", and verify on the next statement that the balance actually dropped.
- Paying PMI longer than required
You can request PMI cancellation at 80% loan-to-value and the servicer must remove it automatically at 78% (Homeowners Protection Act). Servicers do not always volunteer this — track your LTV and ask in writing.
- Forgetting escrow drifts every year
Even on a fixed-rate loan, the monthly payment changes when property taxes and insurance premiums reset at the annual escrow analysis. A "fixed" $2,594 payment quietly becoming $2,750 is normal, not an error.
Frequently asked questions
What is PITI?+
Principal, Interest, Tax, and Insurance — the four standard components of a typical monthly mortgage payment.
Does this include PMI?+
Yes — toggle PMI on for down payments under 20%. The default rate is 0.5% of the loan amount annually and is adjustable.
Can I get rid of PMI later?+
Usually yes. As your loan-to-value ratio falls you can request cancellation around 80% LTV, and lenders generally must remove it automatically at 78%. PMI protects the lender, not you.
Are HOA fees and closing costs included?+
No. HOA dues are billed separately, and closing costs (typically 2–5% of the price) are a one-time expense at signing. Budget for both alongside the monthly PITI estimate.
How much does the interest rate really matter?+
A lot. Over a 30-year term even a 0.25% difference can total tens of thousands of dollars, so it pays to compare several lenders and weigh discount points.
This calculator is for educational purposes only and does not constitute financial advice. Mortgage rates, taxes, insurance costs, and lender terms vary — consult a qualified mortgage professional before making home-financing decisions.
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From the blog
PMI runs about $30-$70/month per $100,000 borrowed when you put under 20% down. What it costs, when it cancels at 78%-80% LTV, and how to skip it.
The exact amortization formula behind your mortgage payment, why a $400,000 loan at 6.75% costs about $2,594 a month, and how to run the numbers yourself.