Calculator Lab
🔍

Mortgage Calculator

Estimate monthly mortgage payments including principal, interest, taxes, and insurance (PITI).

Share:
%

Additional Costs (Annual)

Understanding Your Mortgage

  • Principal & Interest: The main loan payment
  • Property Tax: Usually 1-2% of home value annually
  • PMI: Required if down payment is less than 20%
  • HOA: Homeowners Association fees if applicable
Advertisement

How to Use This Calculator

  1. Enter the home purchase price
  2. Set your down payment amount or percentage
  3. Enter the interest rate (check current rates with lenders)
  4. Select your loan term (15, 20, or 30 years)
  5. Add property tax, insurance, PMI, and HOA if applicable
  6. Click Calculate to see your monthly payment breakdown

Formula

M = P × [r(1+r)^n] / [(1+r)^n - 1] Where: M = Monthly Payment P = Principal (loan amount) r = Monthly interest rate (annual rate / 12) n = Number of payments (years × 12)

Frequently Asked Questions

How much house can I afford?▼
A common rule is the 28/36 rule: spend no more than 28% of gross monthly income on housing costs and no more than 36% on total debt. However, this varies based on your financial situation, other debts, and local housing costs.
What is PMI and when is it required?▼
Private Mortgage Insurance (PMI) is required when your down payment is less than 20% of the home price. It protects the lender if you default. PMI typically costs 0.5-1% of the loan amount annually and can be removed once you have 20% equity.
Should I choose a 15-year or 30-year mortgage?▼
A 15-year mortgage has higher monthly payments but lower total interest and faster equity building. A 30-year mortgage has lower monthly payments but more total interest paid. Choose based on your budget and financial goals.
What costs are not included in this calculator?▼
This calculator estimates principal, interest, taxes, insurance, PMI, and HOA. It doesn't include closing costs (2-5% of loan), maintenance (1% of home value/year), utilities, or potential special assessments.
How does interest rate affect my payment?▼
Interest rate significantly impacts your monthly payment and total cost. For example, on a $300,000 loan over 30 years, a 1% rate increase (from 6% to 7%) adds about $200/month to your payment and over $70,000 in total interest.
Advertisement