Frequently Asked Questions

What is included in a monthly mortgage payment?

A typical monthly mortgage payment has four core parts, known as PITI: Principal, Interest, Taxes, and Insurance. Principal and interest repay the loan itself, while property taxes and homeowners insurance are usually collected monthly and held in escrow to pay those bills. If your down payment is under 20% you may also pay PMI, and if your home is in a homeowners association you will owe HOA dues on top.

How is my monthly mortgage payment calculated?

The principal and interest portion comes from three numbers, the loan amount, the interest rate, and the term, combined with the standard amortization formula to produce one level payment for the life of the loan. Property tax, homeowners insurance, PMI, and any HOA dues are then added on top to give your full monthly payment. The calculator does all of this instantly as you type.

Do property taxes and insurance change my payment?

Yes. Property taxes and homeowners insurance are a real part of your monthly cost, usually collected in twelfths and paid from escrow, and together they often add a quarter or more of the total payment. In the guide's example, taxes and insurance add about $550 a month to a $400,000 home purchase. Because these vary a lot by location, a principal-and-interest-only estimate can be misleading, so the calculator lets you enter both.

What is an amortization schedule?

An amortization schedule is a month-by-month table showing how each payment splits between interest and principal, and how your loan balance falls over time. Because interest is charged on your remaining balance, early payments are mostly interest and later ones are mostly principal. The calculator includes a full amortization schedule so you can see this for your own loan.

What is PMI, and when can I stop paying it?

PMI (private mortgage insurance) protects the lender, not you, and is usually required on a conventional loan when your down payment is under 20%. It typically costs about 0.3% to 1.5% of the loan amount per year. You can request removal once you reach 20% equity, and by law the lender must cancel it automatically once your balance reaches 78% of the original value, as long as you're current on payments. Learn more in our PMI guide.

How much house can I afford?

A common guideline is the 28/36 rule: keep your total housing payment at or below 28% of your gross monthly income, and all your monthly debt payments combined at or below 36%. Work backwards from that 28% target to a home price, and read our full affordability guide for a step-by-step example.

Should I choose a 15-year or 30-year mortgage?

A 30-year mortgage gives you a lower, more flexible monthly payment, while a 15-year mortgage costs far less interest overall and builds equity faster in exchange for a higher monthly payment. Neither is universally better, so see our 15- vs 30-year guide for a side-by-side comparison with real numbers.

Does my down payment affect how much house I can afford?

Yes, significantly. A larger down payment reduces the loan you need for the same home, lowers your monthly payment, can help you avoid PMI, and may earn a better rate. All of that increases the price you can comfortably afford for a given monthly budget.

Is this calculator private?

Yes. All of the math runs entirely inside your web browser, and the numbers you enter are never uploaded to any server, stored, or transmitted to us. There are no accounts and no sign-ups. See our privacy policy for details.

Is the calculator free?

Yes, the calculator is completely free to use, with no sign-up required. It stays free through advertising served by Google.