Enter your home price, down payment, interest rate, and loan term. The calculator instantly shows your total monthly payment (PITI) including taxes, insurance, and PMI. Adjust values to compare different scenarios and find a payment that fits your budget.
According to Investopedia, a mortgage is a loan used to purchase real estate, typically with repayment terms of 15-30 years.
What This Mortgage Calculator Includes
This calculator computes your full PITI payment — Principal, Interest, Taxes, and Insurance — which represents your true monthly housing cost. Most online calculators show only P&I, which significantly understates actual costs. Including taxes, insurance, and PMI gives you an accurate picture for budgeting and qualification.
The 15-year saves over $231,000 in total interest. The trade-off is $578 higher monthly payments. The right choice depends on your cash flow, investment alternatives, and risk tolerance.
Frequently Asked Questions
Use the 28/36 rule: housing costs should not exceed 28% of gross monthly income, and total debt payments not exceed 36%. On a $90,000 annual salary ($7,500/month), maximum housing is $2,100/month PITI.
PMI (Private Mortgage Insurance) is required when your down payment is less than 20%. It protects the lender, not you. Avoid it by making a 20% down payment, using a piggyback loan (80-10-10), or choosing lender-paid PMI (higher rate, no separate PMI charge).
A 15-year saves enormous interest and builds equity faster but requires higher monthly payments. A 30-year provides flexibility — you can always pay extra when cash flow allows. If the 15-year payment fits comfortably, it usually makes mathematical sense to choose it.
Conventional loans typically require a minimum 620 score, with better rates at 740+. FHA loans accept scores as low as 580 (3.5% down). VA loans have no minimum score requirement, though lenders typically set their own minimums around 580–620.
A full mortgage payment includes PITI: Principal (paying down the loan balance), Interest (what the lender charges), Taxes (property taxes escrowed monthly), and Insurance (homeowners insurance). Some payments also include PMI if down payment is under 20%.
Using the 28/36 rule: with $50,000/year ($4,167/month gross), you can afford approximately $1,167/month for housing (28% of gross). At current 7% rates with 20% down, this typically supports a home price of $175,000-$200,000 depending on local taxes and insurance costs.