Mortgage Payment
A mortgage payment is the fixed monthly amount owed to a lender, covering principal and interest (P&I). It may also include escrow for property tax and homeowners insurance (PITI).
The standard mortgage payment formula calculates the fixed monthly amount needed to fully repay a loan over a set term at a fixed interest rate. The payment stays the same every month, but the interest/principal split changes as the balance falls.
PITI — Principal, Interest, Taxes, Insurance — is the total monthly housing cost most lenders use for affordability calculations. Our mortgage calculator models the full PITI payment, including optional property tax, insurance, and PMI inputs.
Put this into practice with our free calculator:
Open calculator →Or browse all Mortgages & Home calculators →
Related terms
- Amortization
- Amortization is the process of paying off a loan through scheduled, equal payments that cover both principal and interest. Early payments are mostly interest; later payments are mostly principal.
- Principal
- The principal is the original amount borrowed on a loan, or the outstanding balance still owed — excluding interest. On a mortgage, principal is the portion of each payment that reduces the loan balance.
- Debt-to-Income Ratio (DTI)
- The debt-to-income (DTI) ratio is your monthly debt payments divided by your gross monthly income, expressed as a percentage. Most lenders require a DTI below 43% to qualify for a mortgage.