About the mortgage calculator
Your monthly mortgage payment is more than the loan repayment. Lenders usually collect property tax and homeowners insurance in escrow, so this calculator adds them to principal and interest (often called PITI) to show what you will actually pay each month.
Try the extra payment box to see how much interest and time you save. Even $100 a month toward principal can remove years from a 30-year loan.
Formula
Monthly P&I = L × r ÷ (1 − (1 + r)^−n), where L is the loan amount, r is the monthly rate (annual rate ÷ 12) and n is the number of monthly payments.
Frequently asked questions
How much house can I afford?
A common guideline is to keep total housing costs below about 28% of gross monthly income and all debts below about 36%. Lenders look at your credit, debts and savings as well.
Does this include PMI?
No. If your down payment is under 20% you will usually also pay private mortgage insurance, typically 0.3% to 1.5% of the loan per year. Add it to the insurance field for a closer estimate.
Is a 15-year or 30-year mortgage better?
A 15-year loan has a higher payment but a lower rate and far less total interest. A 30-year loan gives a lower payment and more flexibility. Compare both by changing the term above.