A mortgage payment is more complex than it looks. It typically consists of four components, abbreviated as **PITI**: Principal, Interest, Taxes, and Insurance. This calculator focuses on the Principal and Interest (P&I) portion, which is what your bank actually charges you for borrowing the money.

The remaining components — property taxes and homeowner's insurance — vary by location and property, and are usually collected separately by your lender and held in an escrow account.

The traditional advice of putting 20% down is not just about getting a lower loan amount. The real reason is **Private Mortgage Insurance (PMI)** — an additional monthly fee, typically 0.5% to 1% of the loan amount per year, that lenders charge when your down payment is below 20%.

For a ₹50 lakh home loan, PMI could add ₹2,000–₹4,000 to your monthly payment. That money goes entirely to the insurer — not toward your equity. Reaching 20% equity (and requesting PMI removal) can make a meaningful difference in your monthly budget.

Calculate your monthly mortgage payment including principal and interest. Understand the true cost of homeownership before you buy.