Mortgage Calculator

Your monthly payment typically includes principal and interest (P&I) on the loan, plus often property taxes and homeowners insurance—together called PITI. Many lenders collect tax and insurance in an escrow account and pay them when due. Depending on your loan and situation, the payment may also include PMI (if you put less than 20% down), HOA fees, or other escrow items. Check your loan estimate or closing documents to see exactly what is included in your quoted payment.

A common guideline is that your total monthly housing payment (PITI) should not exceed 28% of your gross monthly income, and total debt payments (including the mortgage) often no more than 36%. These are rules of thumb; your comfort level, other expenses, and savings goals matter. Use our calculator to enter your income, down payment, rate, and term to see your monthly payment and total cost, then compare that to your budget to see how much house you can afford.

Fixed-rate mortgages keep the same interest rate for the full term (e.g., 30 years), so your principal-and-interest payment stays the same and is easy to plan for. Adjustable-rate mortgages (ARMs) start with a fixed rate for a period (e.g., 5 or 7 years), then the rate can change at set intervals based on a market index. ARMs can offer lower initial payments but add the risk of higher payments later. This calculator assumes a fixed rate; for an ARM you would need to model different rate scenarios.

Extra principal payments reduce the balance faster, so you pay less total interest and can shorten the loan term. Even small regular extra amounts can save a lot over time. Before committing, consider whether you have higher-interest debt to pay down first, an emergency fund, and other goals (e.g., retirement savings). If your mortgage rate is low, some people prefer to invest the difference; the right choice depends on your risk tolerance and financial situation.

Private Mortgage Insurance (PMI) is typically required when your down payment is less than 20% of the home's purchase price or appraised value. It protects the lender if you default; the premium is added to your monthly payment. Once your loan-to-value ratio drops to about 78% (by paying down the balance or appreciation), you can often request cancellation of PMI. FHA loans use a different form of mortgage insurance (MIP) with different rules. Our calculator can include PMI in the monthly payment when you enter a down payment below 20%.

Our mortgage calculations use the standard amortization formula for a fixed-rate loan: the monthly payment is derived from the loan amount, annual interest rate, and term in months. This matches the method used by the Consumer Financial Protection Bureau (CFPB), lenders, and real estate tools. We do not provide legal or financial advice; for FHA, VA, or other special programs, consult a lender or CFPB resources for program-specific rules and calculations.