Mortgage Calculator
See your true monthly housing payment — not just principal and interest, but taxes, insurance, PMI, and HOA — plus a full year-by-year amortization schedule and what extra payments would save you.
What's actually in a mortgage payment (PITI)
Lenders and real-estate agents quote "principal and interest," but your real monthly bill is PITI:
- Principal — pays down what you borrowed.
- Interest — the lender's charge on the remaining balance.
- Taxes — property tax, usually collected monthly into escrow. Typically 0.5–2.5% of home value per year depending on the state.
- Insurance — homeowners insurance, also usually escrowed.
Two more may apply: PMI (private mortgage insurance, usually ~0.5–1.5% of the loan per year, required when your down payment is under 20% — this calculator adds an estimate automatically and notes when it drops off) and HOA dues.
Why extra payments are so powerful
Early in a 30-year mortgage, most of each payment is interest. Every extra dollar goes straight to principal — shrinking the balance every future interest charge is computed on. On a $320,000 loan at 6.5%, just $200 extra a month cuts roughly five years and over $80,000 in interest off the loan. Run your own numbers above and the calculator shows the exact payoff date and savings.
Before making extra payments, confirm your loan has no prepayment penalty and that extras are applied to principal — and weigh it against higher-return uses of the money (employer 401(k) match first, high-interest debt second).
15-year vs. 30-year
A 15-year term carries a lower rate and dramatically less total interest, but a much higher required payment. A popular middle path: take the 30-year for flexibility and pay it like a 15-year with extras — you keep the option to drop back to the lower payment if life happens.
How much house can you afford?
The common lender guideline is the 28/36 rule: housing costs under 28% of gross monthly income, and all debt payments combined under 36%. On a $100,000 income, that's about $2,333/month for PITI. Being approved for more doesn't mean it's comfortable — leave room for maintenance (budget ~1% of home value per year), utilities, and savings.
Frequently asked questions
Does this include PMI?
Yes — if your down payment is under 20%, an estimated PMI of 0.8%/year of the loan amount is added, and the calculator notes it drops off once you reach 20% equity (in the schedule, when the balance falls below 80% of the home price).
Is the rate I enter the same as APR?
Close but not identical: the advertised APR includes some fees. For payment estimation, entering your note rate or APR gives nearly the same monthly figure; compare lender offers by APR.
What about ARM (adjustable-rate) loans?
This calculator models fixed-rate loans. For an ARM, run it at the initial rate for a floor and at the rate cap for a ceiling.
Are property tax and insurance estimates included in the defaults?
The defaults ($4,800/yr tax, $1,800/yr insurance) are typical national figures — replace them with your county's actual rate and an insurance quote for real planning.
This tool is for general information only and is not financial advice.