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Full PITI payment with taxes, insurance and PMI.
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Total monthly payment
$3,391.82
$405,000 loan at 6.75% over 30 years · 90% LTV
PMI applies because the loan-to-value ratio is above 80%. It usually drops off automatically once the balance reaches 78% of the original value.
$3,392/mo total · $2,627 P&I
How this is calculated
A full housing payment is usually called PITI — principal, interest, taxes and insurance — plus PMI and any HOA dues. Principal and interest use the standard amortizing loan formula on the borrowed amount:
loan = home price − down payment
P&I = loan × r ÷ (1 − (1 + r)^−n)
Property taxes are estimated as an annual percentage of the home value divided by twelve. Insurance is your annual premium divided by twelve. PMI is charged as an annual percentage of the loan balance and only applies while the loan-to-value ratio is above 80%:
LTV = loan ÷ home price × 100
PMI monthly = loan × PMI rate ÷ 100 ÷ 12
Lenders typically want the total housing payment at or below 28% of gross monthly income, and all debt payments below about 36–43%. Remember that taxes and insurance are re-assessed periodically, so an escrowed payment usually rises over time even on a fixed-rate loan.