Mortgage Calculator

What goes into a mortgage payment

Lenders often quote only principal and interest, but the amount that leaves your bank account each month is usually bigger. In the United States it is often called PITI: principal, interest, taxes and insurance. Many buyers also pay private mortgage insurance (PMI) and homeowners' association (HOA) fees. This calculator adds all of them so you can budget for the real number.

• Principal and interest is the fixed-rate loan payment, calculated with the standard amortization formula.
• Property tax is set by your local government, typically between 0.5% and 2% of the home's value each year in the US.
• Home insurance protects the house and is required by lenders.
• PMI usually applies when your down payment is under 20% of the price, and typically costs 0.3%–1.5% of the loan per year. It can be removed once you reach enough equity.
• HOA fees apply to many condos and planned communities.

15-year vs 30-year mortgage

A 30-year mortgage has a lower monthly payment, but you pay far more interest over the life of the loan. A 15-year loan costs more each month, usually has a lower rate, and builds equity much faster. Switch the term in the calculator and compare the "Total interest" figure to see the difference for your price and rate.

How much house can you afford?

A common rule of thumb is to keep your total housing payment under about 28% of gross monthly income, and all debt payments under about 36%. Lenders use their own limits, so treat this as a starting point. A larger down payment lowers the payment, can remove PMI and may get you a better rate.

For outside the US: set the tax, insurance and PMI fields to zero if they don't apply, and choose your currency. For other borrowing, use the loan calculator, or see how extra payments shorten a loan with the prepayment calculator.