Mortgage Calculator
Estimate your full monthly housing payment — principal, interest, property tax and homeowner’s insurance (PITI) — and see how much house a given payment actually buys.
How to use the mortgage calculator
- Enter the home price and your down payment percentage.
- Add the mortgage rate and term you expect to get (30-year fixed is the most common).
- Enter annual property tax and insurance estimates for the area — your agent or county assessor can provide these.
- Review the PITI total; that is the payment to budget for, not just principal and interest.
Formula
About this calculator
A mortgage payment has four parts, usually abbreviated PITI: principal, interest, property tax, and insurance. Lenders qualify you on the full PITI number, and buyers who budget only for principal and interest are routinely surprised by a payment 20–30% higher than expected. This calculator shows all four components separately.
The down payment percentage changes more than the loan size. Below 20% down, most lenders add private mortgage insurance (PMI), which is not included in the estimate above — add roughly 0.5%–1.5% of the loan amount per year if your down payment is under 20%.
A widely used guideline is the 28/36 rule: keep housing costs below 28% of gross monthly income, and total debt payments below 36%. Treat it as a starting point rather than a law — high-cost areas and variable incomes both justify adjustments in either direction.
Frequently asked questions
How much does 1% in rate change the payment?
On a $300,000 30-year loan, going from 7% to 6% cuts the principal-and-interest payment by roughly $190 a month and total interest by around $70,000 over the term.
Is a 15-year mortgage better than 30-year?
15-year loans carry lower rates and dramatically less total interest, but the payment is roughly 40–50% higher. Choose 15-year only if the higher payment fits your budget with room to spare.
What is escrow?
An account managed by your lender that collects 1/12 of your annual property tax and insurance each month, then pays those bills on your behalf. It is why your actual payment can change year to year even with a fixed-rate loan.
Are HOA fees included?
No. If the property has an HOA, add the monthly fee to the PITI result manually when judging affordability.