Your monthly housing cost is more than the loan repayment. This mortgage calculator adds property tax, home insurance and HOA fees to the principal and interest, so you can see the full monthly figure lenders call PITI — and how much interest you pay over the life of the loan.
How to use the mortgage calculator
- Enter the home price and your down payment as a percentage.
- Add the interest rate and choose the loan term.
- Fill in property tax, insurance and any HOA fees.
- Check the monthly total and the amortization schedule.
Formula
M = P × i ÷ (1 − (1 + i)^−n)
M is the monthly principal-and-interest payment, P the loan amount (home price minus down payment), i the monthly rate (annual rate ÷ 12) and n the number of monthly payments.
Property tax and insurance are spread evenly over 12 months and added on top.
Worked example
A $400,000 home with 20% down leaves a $320,000 loan. At 6.5% over 30 years the principal and interest come to about $2,022.62 a month. Adding 1.1% property tax ($366.67) and $1,500 a year of insurance ($125) gives roughly $2,514 a month.
15-year vs 30-year mortgages
A shorter term means higher monthly payments but far less interest. On the same $320,000 loan at 6.5%, a 15-year term costs about $2,788 a month but saves over $225,000 in interest compared with 30 years.
Frequently asked questions
What is included in a mortgage payment?
Usually principal, interest, property tax and homeowners insurance (PITI), plus PMI if your down payment is under 20% and HOA fees if you have them.
How much house can I afford?
A common guideline is to keep total housing costs below about 28% of gross monthly income, and all debt payments below about 36%. Lenders also look at your credit score and savings.
Does this include PMI?
No. Private mortgage insurance typically costs 0.3%–1.5% of the loan per year and is usually required below 20% down.
Last updated · Calculations checked by automated tests· Editorial policy