Mortgage Calculator

How is a mortgage payment calculated?

Your monthly mortgage payment is typically made up of four main components, commonly referred to as PITI:

• Principal: The portion of your payment that goes toward paying down the actual balance of the loan.
• Interest: The cost of borrowing the money, paid to your lender.
• Taxes: Property taxes assessed by your local government, usually collected in an escrow account.
• Insurance: Homeowner's insurance to protect your property against damage, also typically paid via escrow.

Why use Prime Rate Guide's Mortgage Calculator?

Buying a home is one of the biggest financial decisions you'll ever make. Our premium calculator lets you see exactly how much you can afford, and visualizes where every dollar of your monthly payment goes. All calculations are performed entirely in your browser for maximum privacy and speed.