Mortgage Calculator
See what a home will really cost each month — not just principal and interest, but property tax, insurance, HOA dues and PMI.
How to use this mortgage calculator
Enter the price of the home and how much cash you plan to put down. Add the interest rate your lender quoted and pick a loan term. The calculator updates as you type. If you don't know your property tax yet, a common rough estimate is about 1.1% of the home price per year, but rates vary a lot by county — check the listing or your county assessor's website for the real number.
Your result is split into the parts lenders often call PITI: principal, interest, taxes and insurance. HOA dues and private mortgage insurance (PMI) are added on top when they apply.
The mortgage payment formula
The principal-and-interest part of a fixed-rate mortgage is calculated with the standard amortization formula:
M = P × r(1 + r)n ÷ [(1 + r)n − 1]
where P is the loan amount, r is the monthly interest rate (annual rate ÷ 12) and n is the number of monthly payments. For a $320,000 loan at 6.5% over 30 years, r = 0.005417 and n = 360, which gives a principal-and-interest payment of about $2,023 per month.
What is PMI and when does it go away?
Private mortgage insurance protects the lender when you put down less than 20% on a conventional loan. It usually costs between 0.3% and 1.5% of the loan per year. Under the federal Homeowners Protection Act, you can ask your lender to cancel PMI once your balance reaches 80% of the home's original value, and it must end automatically at 78%. FHA loans use a different mortgage insurance premium with its own rules.
Ways to lower your monthly payment
- Put more money down. A smaller loan means a smaller payment, and reaching 20% removes PMI.
- Shop several lenders. Even a 0.25% lower rate saves thousands of dollars over 30 years.
- Compare loan terms. A 15-year loan has a higher payment but far less total interest. Try both in the calculator above.
- Shop for homeowners insurance and ask about appealing your property tax assessment.
Frequently asked questions
How much house can I afford?
A common guideline is to keep your total housing payment under about 28% of your gross monthly income, and all your debt payments under about 36%. Lenders may allow more, but a lower payment leaves room for savings and surprises.
Does this calculator include closing costs?
No. Closing costs are usually 2% to 5% of the loan and are paid upfront, not as part of the monthly payment. Plan for them separately from your down payment.
Is the result exact?
It is an estimate. Your lender's official Loan Estimate will show the exact payment, including escrow amounts that can change each year when taxes and insurance change.
Last reviewed November 14, 2026.
