What is included in a monthly mortgage payment?

Your total monthly payment — often called PITI — includes principal and interest (P&I), property taxes, and homeowner's insurance. If your down payment is under 20%, it usually also includes private mortgage insurance (PMI), and if your property is in an HOA, those dues are typically collected too.

How is the principal and interest payment calculated?

Principal and interest are based on your loan amount, interest rate, and term using the standard amortization formula. Early payments are mostly interest; over time more of each payment goes toward principal. This calculator shows the full amortization schedule.

When do I have to pay PMI?

Private mortgage insurance is generally required when your down payment is less than 20% of the purchase price (a loan-to-value above 80%). Once you build enough equity, PMI can usually be removed. Self-employed borrowers using non-QM programs may have different PMI structures — ask your lender.

How much of my income should go to my mortgage payment?

A common guideline is to keep your total housing payment around 28% of your gross monthly income, and total debts under about 43%. For self-employed borrowers, lenders calculate "income" from your bank statements, 1099s, assets, or a P&L — not necessarily your tax return. Use our self-employed calculators to estimate your qualifying income first.

Does a higher down payment lower my monthly payment?

Yes. A larger down payment reduces your loan amount (lowering principal and interest), and crossing the 20% threshold removes PMI. Both reduce your total monthly payment — try different down-payment amounts in the calculator to see the effect.

Mortgage Payment Calculator

Estimate your full monthly mortgage payment — principal, interest, property taxes, homeowner's insurance, PMI, and HOA — on any loan amount, rate, and term. Once you know your qualifying income, this shows what the payment on your target home would actually look like.

Loan Details

Property Price

Down Payment

25%

Interest Rate

Loan Term

Taxes, Insurance & Fees

Annual Property Tax

Annual Insurance

Monthly PMI

Usually required if <20% down

Monthly HOA

Payment Summary

Total Monthly Payment

P&I: $0 · Escrow: $0

Monthly Breakdown

Principal & Interest$0

Property Tax$0

Insurance$0

Total Payment$0

Loan Summary

Loan Amount$0

Down Payment$0

Total Interest$0

Total Paid (P&I)$0

P&I = Principal + Interest

What Goes Into Your Monthly Payment

Most people think of a mortgage payment as just principal and interest, but your real monthly cost — often called PITI — bundles in several pieces that are usually collected together into an escrow account:

Principal & Interest (P&I) — the loan repayment itself, set by your loan amount, rate, and term.
Property Taxes — your annual local tax, divided into monthly escrow payments.
Homeowner's Insurance — the policy that protects the home, also escrowed monthly.
PMI — private mortgage insurance, generally required when you put less than 20% down, and removable once you build enough equity.
HOA Dues — if your property belongs to a homeowners association.

A Note for Self-Employed Borrowers

This calculator tells you what a payment costs — but the other half of the equation is how much a lender will let you borrow. If you're self-employed, 1099, or a business owner, that depends on your qualifying income, which a non-QM lender calculates from your bank deposits, 1099s, assets, or a profit-and-loss statement — not just the net income on your tax return.

Estimate your qualifying income first, then come back here to see the payment on the home it supports.

Mortgage Payment Calculator

Payment Summary

What Goes Into Your Monthly Payment

A Note for Self-Employed Borrowers

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