Mortgage Calculator

Your monthly mortgage payment is calculated using the standard amortization formula: M = P × [r(1+r)ⁿ] ÷ [(1+r)ⁿ − 1], where P is the loan principal (home price minus down payment), r is the monthly interest rate (annual APR ÷ 12), and n is the total number of payments (loan term in years × 12). Our mortgage payment calculator handles this instantly — just enter your numbers above. For a complete picture, add property tax, homeowner's insurance, PMI (if applicable), and HOA fees to arrive at your true monthly housing cost.

A full monthly mortgage payment is often described by the acronym PITI: Principal — the portion that reduces your outstanding loan balance; Interest — the lender's fee for extending the home loan; Taxes — your annual property tax divided into 12 equal monthly instalments held in escrow; and Insurance — homeowner's insurance plus Private Mortgage Insurance (PMI) if your down payment is below 20%. HOA fees are a fifth component if your property is in a homeowners association. Our monthly mortgage calculator includes all five so you never underestimate your housing cost.

A practical starting rule is that your home price should not exceed 2.5–3× your annual gross income. More precisely, lenders apply the 28% front-end rule: your total PITI payment should not exceed 28% of your gross monthly income. Combined with all other debt payments, total obligations should stay at or below 36% (the 28/36 rule). Use our house payment calculator to work backward — enter a target monthly payment, then adjust the home price until the numbers fit your budget. A financial advisor or licensed mortgage professional can help you account for local taxes, insurance costs, and your specific financial picture.

A "good" mortgage rate is relative to current market conditions and your personal financial profile. The 30-year fixed-rate mortgage has averaged around 7% historically, so anything below that level is generally considered favorable. The primary factors that determine the rate you're offered are: credit score (760+ earns the best rates), down payment (20%+ reduces lender risk), loan type (conventional, FHA, VA, jumbo), debt-to-income ratio, and loan term (15-year rates are typically 0.5–0.75% lower than 30-year). Always compare quotes from at least three lenders — even a 0.25% difference can save tens of thousands of dollars over the life of your home loan. Use our mortgage rate calculator slider to see exactly how rate changes affect your monthly payment.

The 28% rule is a widely used affordability guideline that says your total monthly housing payment — including principal, interest, taxes, and insurance — should not exceed 28% of your gross monthly income. The extended version, often called the 28/36 rule, adds that your total monthly debt obligations (mortgage + car loans + student loans + credit cards) should not exceed 36% of gross income. These are guardrails lenders use during underwriting, but your personal comfort level and financial goals may lead to a more conservative target. Enter your income into the calculator and divide your target payment by 0.28 to find the maximum monthly payment your income can support.

The minimum down payment depends on the loan type: Conventional loans typically require 5%–20%; FHA loans allow as little as 3.5% with a 580+ credit score (10% with 500–579); VA loans (eligible veterans and service members) and USDA loans (rural areas) can require 0% down. That said, putting down at least 20% on a conventional loan has two major advantages: it eliminates Private Mortgage Insurance (PMI), which can add 0.2%–1.5% of the loan amount annually to your payments, and it immediately lowers your loan-to-value ratio. Our home loan calculator shows the live dollar value of your down payment and automatically calculates PMI when equity falls below 20%.

Yes. When your down payment is below 20%, this mortgage payment calculator automatically estimates Private Mortgage Insurance (PMI) at 0.5% of the outstanding loan balance per year and adds it to your monthly payment. PMI protects the lender (not you) in case of default. The good news: PMI is not permanent. It drops off automatically once you reach 20% equity based on your original home value, or you can request cancellation at 20% — and it must be removed by law at 22% equity on conventional loans. The exact PMI rate varies by lender, credit score, and loan size; this calculator uses 0.5% as a reasonable estimate.

PITI stands for Principal, Interest, Taxes, and Insurance — the four core components of a complete monthly mortgage payment. Lenders calculate your front-end debt-to-income ratio using PITI divided by your gross monthly income. This ratio must typically stay below 28%–31% to qualify for most conventional and FHA loans. Many first-time buyers underestimate their house payment because they only consider P&I and forget that property taxes and insurance can add $300–$800+ per month depending on the property location and value. Our monthly mortgage calculator includes all PITI components plus HOA fees so your estimate reflects the true cost of homeownership.

Absolutely. The amortization formula this home loan calculator uses is identical across all fixed-rate loan types — conventional, FHA, VA, USDA, and jumbo mortgages. Simply enter the loan amount, your quoted interest rate, and term. A few adjustments to note: for FHA loans, add the annual Mortgage Insurance Premium (MIP — typically 0.55% of the loan balance) to the insurance field; for VA loans, set PMI/insurance to $0 if no funding fee is being financed; for USDA loans, include the annual guarantee fee (0.35%) in the insurance field. The mortgage payment calculator will immediately show you the revised monthly payment.

One discount point costs 1% of the loan amount upfront and typically lowers your interest rate by approximately 0.25%. Whether it makes financial sense depends on your breakeven period — divide the cost of the point by the monthly savings to find how many months it takes to recoup the upfront cost. If you plan to keep the loan longer than the breakeven point (usually 4–7 years), paying points can save significant money over the life of your home mortgage. If you expect to sell or refinance before then, skip the points. Use our mortgage interest calculator to compare the total interest paid at different rates and see the real-dollar impact of each scenario.

Both have genuine advantages depending on your situation. A 15-year mortgage carries a higher monthly payment — roughly 30–45% more than a 30-year for the same loan amount — but you'll pay less than half the total interest and build equity twice as fast. A 30-year mortgage maximises monthly cash flow, making it easier to save for emergencies, retirement, or investments. Many financial advisors suggest: choose the 30-year if the extra monthly cost of the 15-year would strain your budget or eliminate your emergency fund; choose the 15-year if the payment is comfortably within budget and you want to minimise total mortgage interest. You can also take a 30-year loan and make extra principal payments when you can afford to — giving you flexibility without a higher required payment. Toggle the loan term in our mortgage calculator to compare both scenarios instantly.

Our free mortgage calculator is mathematically precise for the inputs you provide. It uses the industry-standard amortization formula and correctly calculates PMI, property tax, insurance, and HOA contributions to your monthly payment. That said, real-world mortgage payments can differ slightly due to: lender origination fees, discount points, escrow account requirements, mortgage insurance premium adjustments, and rate-lock timing. The amortization schedule assumes a fixed interest rate for the full term — variable-rate mortgages (ARMs) will behave differently after the initial fixed period. Always treat this tool as a planning estimate and confirm binding payment figures with a licensed mortgage lender or broker before making financial commitments.