Mortgage Calculator
Your real house payment is more than the loan. This calculator adds principal, interest, property taxes, and insurance (PITI) so you see the number that actually leaves your account each month.
Total monthly payment
$0
- Principal & interest
- $0
- Property taxes
- $0
- Home insurance
- $0
- Loan amount
- $0
- Total interest over the loan
- $0
- Income needed (28% rule)
- $0
What's inside your monthly payment
How to use this calculator
- Enter the home price and your planned down payment — the tool flags whether PMI is likely.
- Add the interest rate you've been quoted and choose a term.
- Adjust property tax (check the listing or county site; 1.1% is a typical US average) and annual insurance.
- Read the full PITI figure — that's the number to compare against 28% of your gross monthly income.
The formula behind the numbers
Principal & interest use the standard fixed-rate amortization formula; taxes and insurance are divided into monthly amounts and added on top:
P&I = L × r ÷ (1 − (1 + r)−n) then PITI = P&I + tax/12 + insurance/12
- L — loan amount (price − down payment) · r — monthly rate · n — months in the term
Worked example: $400,000 home, 20% down, 6.5%, 30 years
Direct answer: about $2,514 per month. The $320,000 loan costs $2,022.62/month in principal and interest, plus roughly $367 in property taxes (1.1%) and $125 in insurance. Over 30 years the interest totals about $408,142 — more than the loan itself. That is why rate shopping and extra principal payments matter so much on mortgages.
| Term (same $320,000 loan, 6.5%) | Monthly P&I | Total interest |
|---|---|---|
| 30-year | $2,022.62 | $408,142 |
| 15-year | $2,787.54 | $181,757 |
The 15-year term costs $765 more per month and saves about $226,000 in interest — the single largest "purchase" decision hidden inside a mortgage.
Costs this calculator doesn't include
- PMI — usually required under 20% down (0.3–1.5% of the loan per year); the results card warns you when it likely applies.
- HOA dues — common for condos and planned communities; add them mentally to the PITI figure.
- Closing costs — typically 2–5% of the loan, paid upfront rather than monthly.
- Maintenance — budgeting 1% of the home's value per year is a common rule of thumb for repairs and upkeep.
Mortgage payment examples at real price points
Three decisions every buyer faces, priced with this calculator. Click any card to load it and adjust to your market.
- First-time buyer
$300,000 starter home, 10% down
A $270,000 loan at 6.5% over 30 years, with typical taxes (1.1%) and $1,500/yr insurance.
Full PITI about $2,107/month — and under 20% down, expect PMI on top until you reach 20% equity.
Load this scenario in the calculator → - Term chooser
The 15-year question on $270,000
Same loan, same 6.5% rate — the only change is the term.
15-year: $2,351.99/mo and $153,358 interest. 30-year: $1,706.58/mo and $344,370. The higher payment buys back $191,012.
Load this scenario in the calculator → - Rate shopper
A quarter-point on a $320,000 loan
Two lender quotes: 6.50% vs 6.25%, 30 years. Feels trivial — is it?
$52.32/month difference, which is $18,836 over the life of the loan. Get the third quote.
Load this scenario in the calculator →
Frequently asked questions
How much house can I afford?
The classic 28/36 rule: keep the full house payment under 28% of gross monthly income and all debt payments under 36%. On $7,000 gross per month that caps housing near $1,960. Lenders may approve more — approval is not affordability. Our affordability guide works through real examples.
What does a mortgage payment include?
Four parts, abbreviated PITI: Principal, Interest, property Taxes, and homeowners Insurance. Put less than 20% down and private mortgage insurance (PMI) is usually added; condos and some neighborhoods add HOA dues on top.
Is a 15-year or 30-year mortgage better?
A 15-year term costs far less overall — often less than half the total interest — but demands a higher payment. A 30-year keeps payments lower and more flexible. A popular middle path: take the 30-year, then make extra principal payments when cash flow allows, capturing much of the 15-year savings without the obligation.
How much is PMI?
Typically 0.3%–1.5% of the loan amount per year while your equity is under 20% — roughly $80–$400/month on a $320,000 loan. It usually can be removed once you reach 20% equity through payments or appreciation.
Should I buy points to lower my rate?
One discount point costs 1% of the loan and typically cuts the rate by about 0.25%. Divide the point cost by the monthly saving to find the break-even: if it's under how long you'll realistically keep the loan, points can pay off; if you may move or refinance sooner, skip them.
Why is my lender's quote different from this calculator?
Lender quotes fold in loan-specific fees, mortgage insurance, escrow padding, and rate adjustments for your credit profile. This tool shows the standard PITI math so you can sanity-check any quote — a big unexplained gap is a question worth asking the lender.