Methodology

How the Mortgage Calculator works

How Tallivo computes your monthly mortgage payment, the full PITI breakdown, and the amortization schedule shown in the chart.

The formula

M = P · [ r(1 + r)ⁿ ] / [ (1 + r)ⁿ − 1 ]

Loan amount P = home price − down payment.
Monthly rate r = annual APR ÷ 12. Number of payments n = term in years × 12.
Principal & interest (P&I) uses the standard fixed-rate amortization formula above. When the rate is 0%, it falls back to P ÷ n.
Property tax = home price × annual tax rate ÷ 12. Home insurance = annual premium ÷ 12. HOA dues are added as entered (monthly).
PMI is estimated at 0.75% of the loan per year and applied while the loan-to-value (LTV) at origination is above 80% (i.e. less than 20% down).
The amortization chart is computed month by month: each month's interest = current balance × r, the rest of the payment reduces principal, and cumulative interest is tracked to the payoff date.

A fixed interest rate for the full term.
Property tax, insurance, and HOA stay constant over time (in reality they drift).
PMI is a planning estimate; your lender's actual PMI depends on credit score, LTV, and loan type, and typically ranges 0.5%–1.0% of the loan annually.
No extra or biweekly payments (see the extra-payment calculator for that).

Reviewed and updated for the 2025 tax year. Figures are planning estimates, not a loan offer — this is not financial advice.