Mortgage Calculator

Estimate your full monthly house payment, including taxes, insurance, PMI and HOA fees.

years
US average is about 1.1% of the home value.
Only applied when the down payment is under 20%.
Total monthly payment
–
–Principal & interest
–Property tax
–Insurance
–PMI
–HOA
–Loan amount
–Total interest over the loan
–Payoff date

What goes into a mortgage payment

Lenders often call the monthly house payment PITI: principal, interest, taxes and insurance. Depending on your loan, you may also pay private mortgage insurance (PMI) and homeowners association (HOA) fees.

  • Principal and interest come from the loan amount, rate and term, using the standard amortization formula.
  • Property tax and insurance are usually collected monthly into an escrow account, so we divide the yearly amounts by 12.
  • PMI applies to most conventional loans with less than 20% down. It typically costs 0.3% to 1.5% of the loan per year and can be removed once you reach 20% equity.
  • HOA fees are paid to your community, not your lender, but they count toward what you can afford.

M = P × i ÷ (1 − (1 + i)−n)

Example

A $400,000 home with 20% down leaves a $320,000 loan. At 6.5% over 30 years, principal and interest is about $2,023 a month. Adding $4,400 a year in property tax and $1,800 in insurance brings the total to about $2,539 a month.

How much house can I afford?

A common rule of thumb is to keep your total housing payment under 28% of your gross monthly income, and all your debt payments under 36%. Try our budget calculator to see how a payment fits with everything else.

Frequently asked questions

Is a 15-year or 30-year mortgage better?
A 15-year loan has a higher monthly payment but a lower rate and far less total interest. A 30-year loan keeps the payment lower and leaves more room in your budget. Compare both here by switching the term.
When does PMI go away?
On most conventional loans you can ask to cancel PMI once your balance reaches 80% of the original home value, and it ends automatically at 78%. FHA loans have their own rules.
Does this include closing costs?
No. Closing costs are usually 2% to 5% of the price and are paid upfront, not monthly.

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