How to use the Mortgage Calculator
- Enter the home price and your down payment as a percentage.
- Add the interest rate and choose a loan term (30-year fixed is the most common).
- Fill in property tax, insurance and HOA so the estimate matches what your lender will actually bill.
- Read your total monthly payment, the breakdown, and the year-by-year amortization schedule.
How it works
The principal-and-interest part of a fixed-rate mortgage uses the standard amortization formula:
M = P × r(1 + r)n ÷ ((1 + r)n − 1)where P is the loan amount, r the monthly rate (annual rate ÷ 12) and n the number of monthly payments.
Property tax, homeowners insurance, HOA dues and private mortgage insurance (PMI) are added on top to give the full monthly cost, often called PITI.
Frequently asked questions
What is PMI and when do I pay it?
Private mortgage insurance protects the lender when your down payment is under 20% on a conventional loan. It typically costs 0.3%–1.5% of the loan per year and can be removed once you reach 20% equity.
Is a 15-year or 30-year mortgage better?
A 15-year loan has a higher monthly payment but a lower rate and far less total interest. A 30-year loan keeps payments affordable and leaves room in your budget. Compare both with this calculator.
How much house can I afford?
A common guideline is to keep housing costs under 28% of gross monthly income and total debt payments under 36%. Use the monthly total above to check against your income.
Does this include closing costs?
No. Closing costs (usually 2%–5% of the price) are paid upfront and are not part of the monthly payment.