How to Use This Mortgage Calculator
Enter your home price and down payment — either as a dollar amount or a percentage (they sync automatically). Add your interest rate and loan term, then optionally include property tax, homeowner's insurance, PMI, and HOA fees for a complete monthly payment picture.
The result shows your total monthly payment broken down into its components, a full amortization chart showing how your equity builds over time, and a complete year-by-year or month-by-month amortization schedule you can download as a CSV.
What Is PITI?
PITI stands for Principal, Interest, Taxes, and Insurance — the four components that make up a complete mortgage payment. Lenders use your total PITI payment (plus any HOA) when calculating your debt-to-income ratio for loan qualification.
What Is PMI?
Private Mortgage Insurance (PMI) is required by most lenders when your down payment is less than 20% of the home's purchase price. It protects the lender — not you — if you default. PMI typically costs 0.5%–1.5% of the loan amount annually and is automatically cancelled once your equity reaches 20% (under the Homeowners Protection Act). Enter your PMI rate above to see its impact on your monthly payment.
The Mortgage Payment Formula
Fixed Rate vs. ARM
A fixed-rate mortgage keeps the same interest rate for the life of the loan — your principal and interest payment never changes, making budgeting simple. A 5/1 ARM (Adjustable Rate Mortgage) offers a lower fixed rate for the first 5 years, then adjusts annually based on a market index. ARMs can save money if you plan to sell or refinance before the adjustment period begins, but carry risk if rates rise significantly.
15-Year vs. 30-Year Mortgage
A 30-year mortgage offers lower monthly payments but significantly higher total interest paid. A 15-year mortgage typically carries a lower interest rate and cuts your total interest cost roughly in half — but monthly payments are substantially higher. Use the term selector above to compare both scenarios side by side.
Frequently Asked Questions
How much house can I afford?
A common guideline is the
28/36 rule: your mortgage payment should be no more than 28% of your gross monthly income, and your total debt payments (mortgage + car + student loans + credit cards) should be no more than 36%. Lenders also consider your credit score, down payment, and debt-to-income ratio. Use our
DTI Calculator to check your ratio.
What credit score do I need for a mortgage?
Conventional loans typically require a minimum score of 620, but you'll get the best rates with a score of 740 or above. FHA loans allow scores as low as 580 (with 3.5% down) or even 500 (with 10% down). VA and USDA loans have no official minimum but lenders typically require 620+. A higher score can save you tens of thousands over the life of the loan.
Should I make extra principal payments?
Extra principal payments can dramatically reduce the total interest you pay and shorten your loan term. Even one extra payment per year on a 30-year mortgage can cut 4–5 years off the loan. The key is to specify that extra payments go toward principal, not future payments, to maximize the benefit. Our amortization table shows your balance each year so you can visualize the impact.
When does PMI go away?
Under the federal Homeowners Protection Act, PMI must be automatically cancelled when your loan balance reaches 78% of the original purchase price (i.e., you have 22% equity) based on your original amortization schedule. You can request cancellation at 80% equity (20% down). If your home has appreciated significantly, you may be able to request cancellation earlier based on a new appraisal — contact your lender for their specific policy.
What's the difference between interest rate and APR?
The interest rate is the cost of borrowing the principal. The APR (Annual Percentage Rate) includes the interest rate plus other loan costs like origination fees, mortgage points, and certain closing costs — expressed as a yearly rate. APR is always higher than the interest rate and is a more complete picture of the true cost of the loan. When comparing mortgage offers, compare APRs, not just interest rates.
Are the results on this calculator accurate?
Our calculator uses the standard mortgage amortization formula and is mathematically accurate for fixed-rate loans. Results are estimates — actual payments may vary due to rounding by your lender, escrow adjustments, varying insurance costs, and other factors. ARM projections assume the rate stays at the initial rate throughout, which may not reflect actual future adjustments. Always confirm with your lender.