How to calculate a mortgage payment
- Enter the home price and your down payment, as a percentage or an amount. The loan amount is calculated for you.
- Enter the interest rate and the term, usually 30 or 15 years.
- Add the yearly property tax rate, home insurance, any HOA fees, and the PMI rate that applies if you put down less than 20%.
- Read the principal and interest payment, the full monthly cost, total interest and payoff date, and scroll down for the amortization schedule.
What goes into a mortgage payment
Lenders often quote "PITI": principal, interest, taxes and insurance. Principal and interest come from the loan formula M = P·r(1+r)ⁿ / ((1+r)ⁿ − 1). With a 400,000 home, 20% down (320,000 loan) at 6.5% for 30 years, that is 2,022.62 a month. Property tax of 1.1% adds about 367 a month, and insurance of 1,500 a year adds 125. If your down payment is below 20%, conventional US loans usually add private mortgage insurance (PMI) of about 0.3–1.5% of the loan per year until you reach 20% equity.
Compare terms: a 15-year mortgage has a higher payment but often a lower rate and roughly half the total interest. Extra monthly payments go straight to principal; even 100 extra a month can cut years off a 30-year loan. Taxes and insurance vary widely by location, so use your own figures. This calculator does not include closing costs or adjustable rates, and nothing you enter leaves your browser.
FAQ
How much house can I afford?
A common guideline is to keep housing costs under about 28% of gross monthly income and all debt payments under 36%. Use the monthly total here to compare with your income.
What is PMI and when does it stop?
Private mortgage insurance protects the lender when you put down less than 20%. On US conventional loans it can be removed once you reach 20% equity and ends automatically at 22%.
Should I choose a 15 or 30 year mortgage?
A 15-year loan saves a lot of interest but has higher payments. A 30-year loan is more flexible; you can still pay extra when you can.