Mortgage Loan Calculator – PITI Payment Estimator
Calculate your monthly mortgage payment with taxes and insurance included.
Property Value
₹6,000,000
Down Payment
₹1,200,000 (20.0%)
Loan Amount
₹4,800,000
Total Interest
₹5,841,473
Total Taxes & Insurance
₹2,550,000
Total Cost
₹13,191,473
What is a Mortgage Loan Calculator?
A mortgage calculator is a comprehensive financial tool designed specifically for home buyers to understand the full cost of homeownership. Unlike basic loan calculators, a mortgage calculator includes not just principal and interest calculations, but also estimates for property taxes and homeowners insurance—collectively known as PITI (Principal, Interest, Taxes, Insurance).
This calculator helps potential homeowners make informed decisions by providing a realistic picture of their total monthly housing costs. It takes into account the property value, down payment amount, interest rate, loan term, property tax rates, and insurance costs to generate a complete breakdown of your mortgage payments over the life of the loan.
By using a mortgage calculator before house hunting, you can determine your price range, compare different loan scenarios, and understand how factors like down payment size and loan term affect both your monthly payment and the total cost of homeownership over time.
How to Use This Calculator
- Enter the property value - This is the total purchase price of the home you're considering.
- Specify your down payment amount - Enter how much you plan to pay upfront, typically 5-20% of the property value.
- Input the interest rate - Enter the annual interest rate offered by your lender (in percentage).
- Select the loan tenure - Choose how many years you plan to take for repaying the mortgage (typically 15-30 years).
- Include property taxes and insurance (optional) - Toggle this option to include these costs in your monthly payment calculation.
- Review the results - The calculator will show your monthly PITI payment, total interest payable, and amortization schedule.
Calculation Formula & Example
The Formula
Monthly Payment = [P × r × (1 + r)^n] ÷ [(1 + r)^n - 1] + T + I
Where:
- P = Principal loan amount (Property Value - Down Payment)
- r = Monthly interest rate (Annual rate ÷ 12 ÷ 100)
- n = Loan tenure in months
- T = Monthly property tax (Annual property tax ÷ 12)
- I = Monthly homeowners insurance (Annual insurance ÷ 12)
Example Calculation
Let's calculate the monthly payment for a mortgage with the following parameters:
- Property value: ₹60,00,000
- Down payment: ₹12,00,000 (20%)
- Loan amount: ₹48,00,000
- Annual interest rate: 7.5%
- Loan tenure: 25 years (300 months)
- Annual property tax: ₹72,000 (1.2% of property value)
- Annual homeowners insurance: ₹30,000 (0.5% of property value)
Step 1: Calculate the monthly interest rate (r)
r = 7.5% ÷ 12 ÷ 100 = 0.00625
Step 2: Calculate the monthly principal and interest payment
P&I = [48,00,000 × 0.00625 × (1 + 0.00625)^300] ÷ [(1 + 0.00625)^300 - 1]
P&I = ₹35,323
Step 3: Calculate the monthly property tax
T = ₹72,000 ÷ 12 = ₹6,000
Step 4: Calculate the monthly homeowners insurance
I = ₹30,000 ÷ 12 = ₹2,500
Step 5: Calculate the total monthly PITI payment
Monthly Payment = ₹35,323 + ₹6,000 + ₹2,500 = ₹43,823
Result:
- Monthly Principal & Interest: ₹35,323
- Monthly Property Tax: ₹6,000
- Monthly Homeowners Insurance: ₹2,500
- Total Monthly PITI Payment: ₹43,823
Benefits of Using This Calculator
- Complete Cost Analysis - Understand the full cost of homeownership including principal, interest, taxes, and insurance.
- Budget Planning - Determine how much house you can afford based on your monthly budget constraints.
- Down Payment Optimization - See how different down payment amounts affect your monthly payments and total interest costs.
- Loan Comparison - Compare different loan terms and interest rates to find the most suitable mortgage option.
- Tax Impact Visualization - Understand how property taxes contribute to your monthly housing costs in different locations.
- Long-term Financial Planning - Project your housing costs over the entire loan term to plan for future financial goals.
Calculator Use Cases
Understand the complete cost of homeownership beyond just the purchase price. Calculate how much house you can afford based on your monthly budget, including all associated costs like taxes and insurance.
Compare your current mortgage terms with potential refinancing options to determine if switching to a new loan would result in significant savings. Factor in closing costs to calculate the break-even point for refinancing.
Compare how different property tax rates in various locations affect your monthly housing costs. This is particularly useful when deciding between homes in different municipalities or school districts with varying tax rates.
Compare the financial implications of a 15-year versus a 30-year mortgage. Visualize how the shorter term affects monthly payments and results in substantial interest savings over the life of the loan.
Frequently Asked Questions
Related Financial Tools
Related Articles
Compare the pros and cons of fixed and adjustable rate mortgages to make an informed decision.
Learn how mortgage escrow accounts work and why they're important for homeowners.
Practical strategies to reduce your monthly housing costs without refinancing.
Stay Updated with Financial Tips
Subscribe to our newsletter for the latest updates on personal finance, investment strategies, and financial tools.