Mortgage Payment Calculator

How to Use This Mortgage Payment Calculator

Lenders look at your full PITI payment when qualifying you for a loan. This calculator gives you that exact number in seconds:

1. Home Price: The purchase price of the home you’re considering.
2. Down Payment: The cash you’ll put down upfront. A 20% down payment avoids Private Mortgage Insurance (PMI), but many loans allow as little as 3-5% down.
3. Interest Rate: Your annual mortgage rate. Shop around—even a 0.5% difference can save tens of thousands over the life of the loan.
4. Annual Property Tax: This varies widely by location. Check local county records or ask your real estate agent for an estimate. A common rule of thumb is 1-2% of home value per year.
5. Annual Home Insurance: Lenders require hazard insurance. Average premiums range from $800–$1,500 annually depending on location and coverage.

The Mortgage Payment Formula (PITI)

The calculator uses the standard loan amortization formula for principal and interest:

Then, monthly property tax and insurance are added to arrive at the total PITI payment:

15-Year vs. 30-Year Mortgage: What’s the Difference?

Toggle between the two terms to see the dramatic impact on your monthly payment and total interest paid:

• 30-Year Fixed: Lower monthly payments, making it easier to qualify and leaving room in your budget. However, you’ll pay significantly more total interest over the life of the loan.
• 15-Year Fixed: Higher monthly payments, but you build equity faster and pay far less total interest. Ideal if you have stable income and want to be mortgage-free sooner.

Example: On a $280,000 loan at 6.5%, the 30-year PI payment is $1,770/month. The 15-year payment is $2,439/month—but you save over $200,000 in total interest.

What This Calculator Doesn’t Include (But You Should Budget For)

• Private Mortgage Insurance (PMI): If your down payment is less than 20%, lenders typically require PMI. This can add $50–$200+ per month. Use a separate PMI calculator for accuracy.
• HOA Fees: If you’re buying a condo or home in a planned community, monthly HOA dues are separate from your mortgage payment.
• Maintenance & Repairs: Budget 1% of the home’s value annually for upkeep. On a $350,000 home, that’s $3,500/year or ~$290/month.
• Closing Costs: One-time fees (2-5% of loan amount) due at closing, separate from your down payment.

Frequently Asked Questions

How much house can I afford?

A common guideline is the 28/36 rule: Spend no more than 28% of your gross monthly income on housing (PITI), and no more than 36% on total debt (including car loans, student loans, credit cards). Use this calculator to see the monthly payment for a given price, then compare to your income.

What is a good interest rate right now?

Mortgage rates change daily based on economic conditions. Check current rates from multiple lenders. Even a 0.25% difference can mean thousands in savings. Consider paying discount points to lower your rate if you plan to stay in the home long-term.

Should I refinance?

Use this calculator to see your current payment. Then, compare it to a new loan scenario with a lower rate. A refinance makes sense if you’ll stay in the home long enough for the monthly savings to exceed the closing costs (the “break-even point”).

How accurate are property tax estimates?

Property taxes vary by county and are reassessed periodically. The estimate here is based on the annual figure you enter. For the most accurate number, check the specific property’s tax history on the county assessor’s website or ask your real estate agent.

Related Tools & Resources

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• First-Time Homebuyer Checklist (Coming Soon) — Everything you need before you apply.
• BMI Calculator — A healthy body supports a healthy financial future.

Disclaimer: This calculator provides estimates for educational purposes. Actual loan terms, taxes, and insurance costs vary. Consult a licensed mortgage professional for personalized pre-approval.