Most mortgage calculators return principal and interest and call it a monthly payment. On a typical loan that figure understates the real cost by fifteen to thirty percent, and it tells you nothing about whether a lender will approve you. This calculator builds the full PITI payment, then runs the qualification analysis a lender would -- including the two-year averaging method used for self-employed income, which is where most business owners get an unwelcome surprise.

✓Full PITI, broken out — Principal, interest, property tax, homeowners insurance, PMI and HOA shown as separate components of one monthly figure, with each one's share of the total.

✓Self-employed income the lender's way — Two-year averaging of net business income with add-backs for depreciation and amortization. If your most recent year is lower than the prior one, the calculator applies the conservative treatment underwriters actually use.

✓Front-end and back-end DTI — Both ratios scored against the thresholds that matter: the 28 percent housing guideline, the 36 percent preferred back-end, and the 43 percent qualified mortgage limit.

✓PMI drop-off timing — PMI is not permanent. The amortization schedule identifies the year your balance reaches 80 percent LTV and stops charging it, with the total premium paid along the way.

✓Extra payments and points — Model additional principal or a lump sum against the payoff date and interest saved, and test whether buying the rate down recovers its cost before you would realistically sell or refinance.

✓Rent versus buy, done honestly — Invests the down payment and closing costs at your assumed return, credits the renter with the monthly difference, and charges the cost of selling -- then reports the year buying pulls ahead.

Full PITIP&IProperty TaxPMI Drop-OffFront / Back DTISelf-Employed IncomeAmortizationEquity CurveExtra PaymentsPoints Break-EvenRent vs Buy

What this calculator models

6Analysis tabs

5PITI components

2Income methods

43%QM limit tested

6 analysis tabs

PaymentFull PITI breakdown and total cash to close.

QualificationSelf-employed income and both DTI ratios.

AmortizationSchedule, equity curve and PMI drop-off year.

Extra PaymentsPayoff acceleration and interest saved.

PointsBreak-even on a rate buydown.

Rent vs BuyBreak-even year with opportunity cost.

Thresholds tested

28%Front-end housing ratio, conventional guideline.

36%Back-end total debt ratio, preferred.

43%Qualified mortgage back-end limit.

80%LTV at which PMI can be removed on request.

For informational purposes only. Not lending, tax or financial advice, and not a pre-approval. Underwriting standards vary by lender and program.

CalculatorResidential Mortgage

Home Mortgage Calculator

Build the full monthly payment, test it against lender debt-to-income limits, and see how self-employed income is actually counted.

Monthly Payment

$6,341

Full PITI, $4,978 principal & interest

Loan Amount

$788K

90.0% LTV, $88K down

Back-End DTI

29.1%

Strong

Total Interest

$1.00M

Over the full 30-year term

Monthly Payment

The full payment, not just P&I

Principal and interest is 79% of what you will actually pay each month. Tax, insurance, PMI and HOA make up the rest, and lenders qualify you on the full figure.

$4,978

$802

Principal & interest$4,978 · 79%Property tax$802 · 13%Insurance$200 · 3%PMI$361 · 6%

Total monthly (PITI)

$6,341

What you actually pay each month

Principal & interest

$4,978

The figure most calculators stop at

Loan amount

$788K

90.0% LTV at 10% down

Cash to close

$114K

Down payment, closing costs and points

Down payment10% of purchase price$87,500

Closing costs3.0% estimate -- lender, title, escrow$26,250

Total cash to closeDue at settlement$113,750

PMI applies at this down payment

At 10% down your LTV is 90.0%, above the 80 percent threshold, so private mortgage insurance of $361 a month applies. It is not permanent -- see the Amortization tab for when it falls away.

For informational purposes only. This calculator is an educational tool and does not constitute lending, tax, legal or financial advice, and is not a loan pre-approval or commitment. Payment, qualification and amortization figures are estimates based on the inputs you provide. Actual terms depend on lender underwriting, credit score, reserves, property type, appraisal, occupancy and program guidelines, all of which vary and none of which are modelled here. Self-employed income treatment differs by lender, entity structure and loan program -- add-back eligibility in particular should be confirmed with your lender and a CPA. Property tax rates, insurance premiums, PMI pricing and closing costs vary by location and carrier. Rent-versus-buy results are highly sensitive to assumed appreciation, investment return and rent inflation, and exclude the mortgage interest and property tax deductions. Confirm all figures with a licensed mortgage professional before making a purchase decision.

The whole payment, andwhether you'll qualify for it

Home Mortgage Calculator

The whole payment, and
whether you'll qualify for it