View full amortization schedule ▾
| Year | Principal paid | Interest paid | Balance |
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How this mortgage calculator works
Enter the home price and your down payment, then set the interest rate and loan term. The calculator instantly works out your monthly principal and interest. It then adds the running costs most calculators leave out — property tax, home insurance, PMI and HOA fees — to show the true monthly payment. Every figure updates live as you type, so you can test a higher down payment, a shorter term or a different rate and see the effect straight away.
How your monthly mortgage payment is calculated
Your core payment covers two things: repaying the amount you borrowed (the principal) and the lender's interest. It is worked out with the standard amortization formula, which spreads the loan into equal monthly payments across the full term. Early on, most of each payment goes to interest; over time the balance tips toward principal. That shift is exactly what the amortization schedule above shows year by year.
The loan amount itself is simply the home price minus your down payment. A larger down payment means a smaller loan, a lower monthly payment and less interest paid over the life of the mortgage.
What's included in your monthly payment (PITI)
Lenders think in terms of PITI — principal, interest, taxes and insurance — because that whole bundle is usually collected together and held in an escrow account. This calculator models all of it, plus two extras that apply to many buyers:
- Principal & interest — repaying the loan, the part set by your rate and term.
- Property tax — an annual local tax, entered here as a percentage of the home's value.
- Home insurance — homeowner's coverage your lender requires.
- PMI — private mortgage insurance, added when your down payment is under 20%.
- HOA fees — monthly dues if the property is in a homeowners association.
PMI: when you pay it and when it drops off
Private mortgage insurance protects the lender if you stop paying, and it is normally required whenever your down payment is below 20% of the home price. It is added to your monthly payment until you build roughly 20% equity, at which point it typically falls away. When your down payment is under 20%, the calculator turns PMI on automatically. It also tells you the approximate month PMI should end, so you can see both the short-term cost and when it disappears.
15-year vs 30-year mortgage
A 30-year loan spreads payments out, so each month costs less but you pay far more interest overall. A 15-year loan has higher monthly payments but a much lower rate is often available and you pay a fraction of the total interest. Switch the loan term above and watch the monthly payment and the total interest figures move in opposite directions — that trade-off is the whole decision in one view.
How much house can I afford?
A widely used guideline is the 28/36 rule. Keep your total monthly housing payment at or below about 28% of your gross monthly income. Keep all debt payments — housing plus car loans, student loans and credit cards — at or below about 36%. To use it here, try a home price, read off the monthly payment, and check whether it lands inside 28% of what you earn each month before tax.
How to lower your monthly payment
- Put down more up front to shrink the loan — and clearing 20% removes PMI entirely.
- Choose a longer term to spread the balance (at the cost of more total interest).
- Shop lenders for a lower rate; even a quarter-point moves the payment.
- Buy in an area with lower property-tax rates, or appeal an over-high assessment.
- Compare home-insurance quotes — premiums vary widely for the same coverage.
Frequently asked questions
Is this mortgage calculator free to use?
Yes — completely free, with no sign-up, no account and no limits. Every calculation runs in your browser, so use it as often as you like.
Does it include property taxes and insurance?
Yes. Unlike a basic principal-and-interest tool, this one estimates the full monthly payment: principal, interest, property tax, home insurance, PMI (when your down payment is under 20%) and HOA fees — the figure lenders call PITI.
What is PMI and do I have to pay it?
Private mortgage insurance protects the lender, not you, and is usually required when your down payment is less than 20% of the home price. It's added to your monthly payment and typically drops off once you've built about 20% equity.
How much house can I afford on my salary?
A common guideline is the 28/36 rule: keep your housing payment under about 28% of gross monthly income and all debt under about 36%. Enter different home prices to see which monthly payment fits comfortably inside those limits.
What's the difference between interest rate and APR?
The interest rate is the cost of borrowing the loan amount. The APR bundles the rate together with certain lender fees, so it's usually a little higher and is the better number for comparing loan offers.
Are my numbers saved or sent anywhere?
No. Nothing you enter leaves your device. The math runs entirely in your browser, and the optional share link only stores the numbers you choose to share inside the link itself.
How accurate is the estimate?
The principal-and-interest math is exact for the numbers you enter. Taxes, insurance and PMI are estimates based on typical rates and vary by location and lender, so treat the total as a close guide rather than a formal quote.