About the Mortgage Calculator
Mortgage Calculator helps estimate the key numbers involved in mortgage & real estate decisions. It is designed for quick scenario comparison: enter a realistic set of values, calculate the result, then change one assumption at a time to see what has the greatest effect. Unlike a static table, the result responds to your inputs and keeps the calculation in your browser. Amounts are displayed in U.S. dollars for consistency, but the mathematical formulas can be used with another currency when every monetary input uses that same currency.
How to use this calculator
Enter values that match your situation and select Calculate result. Review the main result and its supporting figures, then change one input at a time to compare scenarios. Results are rounded for readability while the calculation retains additional precision internally.
Information you will need
- Home price
- Down payment
- Loan term
- Interest rate
- Property tax
- Home insurance
- PMI
- HOA fee
- Other costs
How the calculation works
Uses the standard fixed-rate amortization formula for principal and interest, then adds property taxes, homeowners insurance, PMI, HOA fees, and other costs to produce a complete PITI estimate. Read the primary result together with the supporting values rather than focusing on one number alone. A useful estimate should make its assumptions visible. If the answer looks surprising, verify the unit, rate, time period, and whether the entered value is gross or net. Run a conservative and an optimistic scenario to understand the range of possible outcomes.
Formula or method
Monthly P&I = P × [r(1+r)n] / [(1+r)n - 1], where P = loan principal, r = monthly rate, n = total months.
Worked example
A $400,000 home with 20% down at 6.5% for 30 years has a P&I of about $2,023/month before taxes and insurance.
The example is illustrative rather than a recommendation. Use your own verified values and keep all monetary or measurement units consistent. When comparing alternatives, save or note each result so the assumptions do not become mixed.
How to interpret the result
The primary output answers the main question posed by the mortgage calculator, while the additional cards provide context. A result with many decimal places is not necessarily more certain. The displayed precision makes comparison easier, but uncertainty in the inputs can be larger than the rounding difference.
Compare the result with a second scenario using a less favorable rate, return, cost, or time period. This sensitivity check often provides more useful planning information than one best-case projection.
Limitations and important notes
The mortgage calculator is a planning tool, not a quote, filing calculation, lending decision, or promise of future performance. It does not automatically retrieve live market rates or apply every fee, tax bracket, program rule, product limit, or state law. Rules for products such as FHA, VA, Social Security, retirement accounts, and taxes can change. Confirm time-sensitive values with the lender, plan administrator, IRS, SSA, or another relevant authority before acting.
Frequently asked questions
How much house can I afford based on my salary?
Most lenders use the 28/36 rule: your housing payment should not exceed 28% of gross monthly income, and total debt payments should not exceed 36%. For a $75,000 salary ($6,250/month), the maximum housing payment is about $1,750. Down payment, property taxes, insurance, and current debts all shift the price you can comfortably manage. Run your actual numbers in this calculator to see how much home fits your budget without overstretching.
What is included in a monthly mortgage payment?
A full mortgage payment (PITI) includes Principal, Interest, Property Taxes, and homeowners Insurance. If your down payment is less than 20%, Private Mortgage Insurance (PMI) is also included. HOA dues are usually paid separately but are often counted in total housing cost. The principal and interest portion is fixed with a fixed-rate loan, while taxes and insurance can rise over time as assessments and premiums change.
Should I choose a 15-year or 30-year mortgage?
A 30-year mortgage has lower monthly payments but much higher total interest. A 15-year term typically comes with a lower interest rate, builds equity twice as fast, and saves tens of thousands of dollars in interest, but requires a significantly higher payment. For example, on a $300,000 loan at 6.5%, the 30-year payment is around $1,900 versus $2,600 for 15 years, yet the 15-year saves roughly $180,000 in interest. Choose the term whose payment fits comfortably in your budget while meeting your savings goals.
How much can I save with extra mortgage payments?
Adding even $100/month to a $250,000 mortgage at 6.5% can cut over 4 years off the loan and save more than $40,000 in interest. One extra payment per year can also shave years off your mortgage. Extra payments go directly to principal, so all future interest charges shrink. Use this calculator to see how different extra payment amounts shorten your term and reduce total interest.
What credit score do I need for a mortgage?
Conventional loans typically require a 620 minimum, while FHA loans may accept 580 (or 500 with 10% down). VA loans have no government minimum, but most lenders want 620+. A higher score qualifies you for lower interest rates: each credit tier can lower your rate by roughly 0.25-0.75%, which saves thousands over a 30-year term. Check your credit before shopping and consider improving it if you are near a cutoff.
What is PMI and how can I avoid it?
Private Mortgage Insurance (PMI) protects the lender, not you, and is required when your down payment is below 20%. On a $300,000 home with 10% down, PMI typically costs $100-$300 per month depending on your credit and loan type. You can avoid it by saving a 20% down payment, choosing a loan with lender-paid mortgage insurance, or pursuing options like VA (no PMI) or USDA loans. Once you reach 20% equity, conventional PMI can usually be canceled by request.
How are mortgage interest rates determined?
Mortgage rates are driven by the bond market, Federal Reserve policy, and inflation, so they change daily. Your personal rate depends on your credit score, down payment, loan type, term, and property type. For example, a borrower with a 760 score and 20% down gets a notably lower rate than someone with a 640 score and 5% down. Shopping multiple lenders can also reveal rate differences of 0.25-0.5%, which saves thousands over the life of the loan.