Use our free mortgage calculator to estimate your monthly mortgage payment. Enter your home price, down payment, interest rate, and loan term to instantly see your principal and interest payment, plus an optional breakdown of property taxes, home insurance, and PMI.

How to Use the Mortgage Calculator

Start by entering the home price of the property you’re considering. If you’re still browsing, try a few different price points to see how they affect your payment. Next, enter your down payment — either as a percentage or a dollar amount. A down payment of 20% or more eliminates Private Mortgage Insurance (PMI), which can save you $100–$200 per month on a typical home.

Select your loan term. The 30-year fixed mortgage is the most common choice because it offers the lowest monthly payment, but a 15-year mortgage lets you pay off your home faster and saves tens of thousands of dollars in interest. The 20-year option splits the difference. For most first-time buyers, the 30-year term provides the most financial flexibility.

Enter the current interest rate you’ve been quoted, or use our default as a benchmark. Even a 0.5% difference in rate can change your monthly payment by $80–$150 on a $400,000 loan. Finally, add your estimated annual property taxes (usually 0.8%–2% of home value depending on your state) and home insurance to see your full PITI payment — Principal, Interest, Taxes, and Insurance.

If your down payment is less than 20%, PMI will be automatically added to your estimate. PMI typically costs 0.5%–1.5% of the loan amount per year and can be removed once you reach 20% equity in your home.

Understanding Your Mortgage Results

The most important number on this calculator is the Total Monthly PITI — this is what you’ll actually pay each month when all housing costs are included. Lenders use this number to calculate your debt-to-income ratio (DTI), which must typically be below 43% of your gross monthly income to qualify for a conventional loan.

Pay close attention to the total interest paid over the life of the loan. On a $400,000 30-year mortgage at 7%, you’ll pay approximately $558,000 in total — meaning you pay $558K for a $400K home. On a 15-year mortgage at the same rate, total interest drops to around $248,000. That $310,000 difference is why financial experts often recommend paying extra toward principal when your budget allows.

The amortization chart shows how your payment is split between principal and interest each year. In the early years, nearly 80% of your payment goes to interest — this is why extra principal payments made early in the loan have an outsized impact on total interest paid. Even one extra payment per year can cut years off your mortgage.

Frequently Asked Questions

What does PITI mean in a mortgage?

PITI stands for Principal, Interest, Taxes, and Insurance. It’s the total monthly cost of homeownership beyond just your loan payment. Lenders use your PITI to calculate whether you can afford a given home. Our calculator includes all four components for the most accurate estimate.

How much house can I afford on my salary?

A common guideline is the 28/36 rule: your monthly housing payment (PITI) should not exceed 28% of your gross monthly income, and your total debt payments (housing plus car loans, student loans, credit cards) should not exceed 36%. On a $75,000 salary, that means a PITI of no more than $1,750/month. Use our home affordability calculator for a more precise answer.

Is a 20% down payment required to buy a home?

No — 20% is not required. Many loan programs allow much lower down payments: FHA loans require as little as 3.5% down, conventional loans start at 3% for qualified buyers, and VA loans (for eligible veterans) require 0% down. The trade-off is that anything below 20% typically requires PMI, which adds $50–$200/month to your payment until you reach 20% equity.

What’s the difference between a fixed and adjustable-rate mortgage?

A fixed-rate mortgage keeps the same interest rate for the entire loan term — your payment never changes. An adjustable-rate mortgage (ARM) starts with a lower rate for a fixed period (e.g., 5 years), then adjusts annually based on market rates. ARMs can be risky if rates rise significantly, but may save money if you plan to sell or refinance before the adjustment period begins.

Related Resources

These articles will help you put your mortgage calculation in context: