Mortgage Calculator
The whole payment — principal, interest, property tax, insurance, PMI and HOA — plus the amortisation schedule and exactly what an extra payment each month saves you.
Instant answers
Works offline once loaded
Nothing you type is sent anywhere
Full PITI breakdown
PMI drops off automatically
Extra-payment payoff
The purchase
Edit either box — the other follows.
The other costs
US average is about 1.1%; it ranges from 0.3% to over 2%.
Charged while you owe more than 80% of the value; it stops on its own here.
Used only for the affordability check.
Cars, student loans, minimum card payments.
Monthly payment — everything in
—
Principal and interest only—
Loan amount—
Loan-to-value at closing—
Total interest over the term—
Total paid for the house—
PMI drops off after—
Paid off in—
Interest saved by paying extra—
Can you afford it?
Housing ratio (front-end)—
Total debt ratio (back-end)—
Comfortable payment at 28%—
Lender ceiling at 36%—
Enter your income to see how this payment compares with the usual lending ratios.
Balance and equity
Hover to read the balance, the equity you hold, and the interest paid to that point.
Year by year
| Year | Principal | Interest | PMI | Balance | Equity |
|---|
Instructions
How to use this calculator
Step by step
- Enter the home price and your down payment. The percentage and dollar boxes are linked — type into whichever one you are thinking in and the other updates.
- Set the interest rate and term. Rate is the annual figure your lender quotes; the calculator converts it to a monthly rate internally.
- Fill in the property tax rate for your area, the annual home insurance premium, and any HOA or condo fee. These are not optional extras — they leave your account every month alongside the loan payment.
- Leave the PMI rate as it is unless your lender quoted something different. It only applies while you owe more than 80% of the home's value, and this calculator drops it automatically at that point.
- Read the big number: that is the whole monthly payment. The bar underneath shows what share each part takes, which is usually the eye-opening bit.
- Enter your gross household income and other monthly debt payments to get the affordability ratios lenders actually use.
- Add an extra principal payment to see how many years and how much interest it removes. Even a small amount early has a large effect.
Good to know
- Twenty percent down avoids PMI entirely. If you are close, the money spent getting to 20% often returns more than the same money invested, because PMI is pure cost with no equity.
- Property tax is assessed on the home's value, not your loan, so it does not fall as you pay the mortgage down — and it usually rises with the assessment.
- A 15-year mortgage carries a noticeably higher payment but less than half the total interest. Run both terms here before you assume the 30 is the sensible default.
- PMI does not always fall off automatically at 80%. Federal rules require cancellation at 78% of the original value on schedule, but you can usually request it at 80% — ask, because nobody will remind you.
- The 28/36 rule is a guideline, not a law. Lenders will go higher, and the fact that they will approve a payment does not mean you should take it.
- Budget separately for maintenance. A common rule is 1% of the home's value a year, and it is not part of any figure on this page.
The maths behind it
- Principal and interest A = P · i / (1 − (1 + i)⁻ⁿ) i is the monthly rate, n the number of monthly payments.
- Property tax monthly = price × tax rate ÷ 12 Assessed on the value of the home, not the loan.
- PMI monthly = loan × PMI rate ÷ 12 Charged only while the balance exceeds 80% of the price.
- Loan-to-value LTV = balance ÷ home value Below 80% and PMI can be cancelled.
- Front-end ratio housing payment ÷ gross monthly income The traditional guideline is 28%.
- Back-end ratio (housing + other debts) ÷ gross monthly income 36% traditionally, 43% is the qualified-mortgage ceiling.
- Equity equity = home value − balance owed Assumes the value stays flat; appreciation adds to it.
What does PITI mean?
Principal, Interest, Taxes and Insurance — the four parts of a normal mortgage payment. The principal and interest go to the lender and amortise the loan; the taxes and insurance usually go into an escrow account the lender pays out of on your behalf. PMI and HOA fees are often added on top, which is why the total can be a third more than the loan payment alone.
When does PMI stop?
Under the Homeowners Protection Act, your servicer must cancel it automatically when the balance reaches 78% of the original value on the original schedule, and must honour a written request at 80%. Extra payments get you there sooner but do not trigger automatic cancellation — you have to ask. This calculator shows the point at which the balance crosses 80%.
Should I take a 15-year or a 30-year mortgage?
A 15 costs substantially more each month and dramatically less overall — often less than half the total interest — and usually carries a slightly lower rate. The argument for the 30 is flexibility: you can always pay a 30 like a 15, but you cannot pay a 15 like a 30 in a bad month. Run both here and decide with the numbers in front of you.
How much house can I afford?
The traditional answer is the 28/36 rule: no more than 28% of gross monthly income on housing, and no more than 36% on all debt combined. Modern lenders often stretch to 43%. Both are ceilings, not targets — the affordability panel on this page shows where a given payment falls against each.
Why does the payment barely touch the balance in the early years?
Because interest is charged on the outstanding balance, which starts at its highest. On a 30-year loan at 6.75%, roughly 80% of the first payment is interest. The year-by-year table makes this concrete: look at how little the balance moves in year one against year twenty-five.
Does this include closing costs?
No. Closing costs typically run 2–5% of the purchase price and are paid up front, separately from the monthly payment. If you are rolling them into the loan, add them to the home price and reduce the down payment percentage accordingly.
Is the extra payment better than investing the money?
Paying down a mortgage gives you a guaranteed, tax-free return equal to your interest rate. Investing might beat it, and might not. At a 6.75% mortgage rate the comparison is genuinely close; at 3% it clearly favours investing, and at 9% it clearly favours the mortgage. The saved-interest figure here gives you the certain side of the comparison.