Mortgage payment calculator

How your mortgage payment is calculated

A monthly mortgage payment is often called PITI — principal, interest, taxes, and insurance — plus any HOA or condo dues. The principal and interest portion is fixed on a fixed-rate loan and is calculated from your loan amount, your interest rate, and your term using a standard amortization formula. Early on, more of each payment goes to interest; over time, more goes to principal.

The other pieces — property taxes and homeowners insurance — are usually collected monthly and held in an escrow account, then paid on your behalf when due. HOA or condo dues, common in Florida’s condominium market, are paid separately to the association. A smaller down payment may also add mortgage insurance, which this simple estimate doesn’t include.

Because taxes, insurance, and dues vary widely by property — and because your actual rate depends on many factors — treat the result as a starting estimate, then get real numbers from a licensed loan originator.