Mortgage Calculator
Calculate your monthly mortgage payment including principal, interest, taxes, and insurance. See the total cost of your home loan over time.
Enter your loan details to calculate your monthly payment.
How It Works
Our mortgage calculator uses the standard amortization formula to calculate your monthly principal and interest payment. We then add property taxes and homeowners insurance to give you the complete monthly housing cost (often called PITI).
The formula accounts for compound interest over your loan term. Early payments go mostly toward interest, while later payments build more equity. A 15-year mortgage has higher monthly payments but saves significantly on total interest.
Note: This calculator provides estimates. Actual payments may vary based on PMI requirements, HOA fees, and lender-specific calculations. Always verify with your mortgage lender.
Frequently Asked Questions
How much house can I afford?
A common guideline 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. Lenders typically approve loans up to 43% debt-to-income ratio, but a lower ratio is financially healthier.
Should I choose a 15-year or 30-year mortgage?
A 15-year mortgage has higher monthly payments but saves tens of thousands in interest and builds equity faster. A 30-year mortgage offers lower payments and more flexibility. Choose 15-year if you can comfortably afford it; otherwise, 30-year with extra payments when possible.
What is PMI and when do I need it?
Private Mortgage Insurance (PMI) is required when your down payment is less than 20%. It typically costs 0.5-1% of the loan amount annually. PMI can be removed once you reach 20% equity, either through payments or home value appreciation.
How do interest rates affect my payment?
Even small rate changes significantly impact your payment and total cost. On a $300,000 loan, a 0.5% rate increase adds about $85/month and $30,000 over 30 years. Shopping multiple lenders and improving your credit score can help secure lower rates.
Should I pay points to lower my rate?
Paying points (1 point = 1% of loan amount) can lower your rate, typically by 0.25% per point. This makes sense if you plan to stay in the home long enough to recoup the cost through lower payments—usually 4-7 years. Calculate your break-even point before deciding.