How to use the Mortgage Calculator
- Enter the home price and your down payment (as a percentage or an amount).
- Enter the interest rate and choose the loan term.
- Add yearly property tax and home insurance, plus any monthly HOA or service charge.
- Read your estimated monthly payment and how it splits between loan, taxes and insurance.
What does this tool do?
Your monthly housing cost is more than principal and interest. Lenders often collect property tax and insurance with the payment (often called PITI), and US borrowers with less than 20% down usually pay private mortgage insurance (PMI).
The calculator shows each part separately, plus the total interest over the life of the loan and a year-by-year balance table.
Why use it?
- See the realistic monthly cost before you make an offer.
- Compare 15-, 20- and 30-year terms by total interest.
- Test how a bigger down payment changes the payment and removes PMI.
Example: a $400,000 home
With 20% down ($80,000), you borrow $320,000. At 6.5% over 30 years, principal and interest come to $2,022.62 a month. Add $4,800 a year in property tax ($400/month) and $1,500 a year in insurance ($125/month) for a total of about $2,547.62 a month.
Over 30 years you'd pay about $408,142 in interest — more than the amount borrowed. A 15-year term at the same rate raises the payment to about $2,788 but cuts total interest to around $181,800.
The formula
Accuracy and limits
- Property tax and insurance vary by location and change over time; use local estimates.
- PMI rates typically range from about 0.3% to 1.5% of the loan per year, depending on credit score and down payment.
- This is an estimate, not a loan offer. Your lender's official loan estimate shows the real figures.
Privacy
The calculation happens instantly in your browser. The numbers you enter are not sent to our servers or saved. There's no account to create and nothing to install.
Frequently asked questions
How much house can I afford?
A common guideline (the 28/36 rule) is to keep housing costs under 28% of your gross monthly income and all debt payments under 36%. Lenders use their own criteria.
When does PMI go away?
In the US, lenders must cancel PMI on conventional loans when you reach 22% equity based on the original value, and you can request removal at 20%.
Last reviewed by the M2Toolkit team.