How to Use This Mortgage Calculator
This mortgage payment calculator estimates your total monthly housing cost based on the home price, down payment, interest rate, loan term, and additional expenses like property taxes, insurance, PMI, and HOA fees. All results update in real-time as you adjust any input — no need to press calculate.
Understanding Your Results
Your total monthly payment consists of four main components, commonly known as PITI: Principal (the portion that reduces your loan balance), Interest (the cost of borrowing), Taxes (property taxes assessed by your local government), and Insurance (homeowner's insurance protecting the property). If your down payment is less than 20%, Private Mortgage Insurance (PMI) adds a fifth cost.
The Formula
Where:
M = Monthly payment
P = Principal loan amount
r = Monthly interest rate (annual rate ÷ 12)
n = Total number of payments (years × 12)
Frequently Asked Questions
How much house can I afford on my salary?â–¾
A common guideline is the 28/36 rule: spend no more than 28% of gross monthly income on housing costs and no more than 36% on total debt payments. On a $75,000 salary, that means a maximum housing payment of approximately $1,750/month.
Should I choose a 15-year or 30-year mortgage?â–¾
A 15-year mortgage has higher monthly payments but a significantly lower interest rate and total interest paid. A 30-year mortgage offers lower monthly payments but costs substantially more over the life of the loan. Use the scenario comparison feature above to see the difference for your specific numbers.
What is PMI and how can I avoid it?â–¾
Private Mortgage Insurance (PMI) is required by lenders when your down payment is less than 20% of the home price. It typically costs 0.3% to 1.5% of the loan amount annually. You can avoid PMI by making a 20% down payment, or it's automatically removed once your equity reaches 22% of the original value.
How accurate is this calculator?â–¾
This calculator uses the standard amortization formula used by lenders. The principal and interest figure is highly accurate for fixed-rate mortgages. Property tax and insurance estimates depend on your specific location and coverage. For the most precise estimate, contact a lender for a pre-approval.
Calclypso Editorial Team
Reviewed by certified financial professionals. Last updated: April 2026. Our mortgage calculator formula follows standard amortization methodology used by Fannie Mae and Freddie Mac.