Mortgage Calculator
Loan Summary
Monthly Payment Breakdown
Payment Components
Loan Details
Total Cost
20.0% of home price
Range: 10 - 30
Not required (20%+ down)
Monthly Payment
$2,219.79
Principal, interest, taxes, insurance
Loan Amount
$280,000.00
80.00% of home price
Monthly Payment Breakdown
Total of All Payments
$799,124.57
Total Interest Paid
$357,124.57
Calculator Assumptions
- Interest rate: Fixed rate assumed for entire loan term; ARMs will vary
- PMI: Typically required with less than 20% down; auto-cancels at 78% LTV (not modeled)
- Property tax: Assumed constant; actual rates change annually and vary by jurisdiction
- Insurance: Homeowners insurance assumed constant; may increase over time
- HOA fees: Not included; add separately if applicable
- Maintenance: Not included; budget 1-2% of home value annually
- Closing costs: Not included; typically 2-5% of loan amount
About the Mortgage Calculator
A Mortgage Calculator estimates your monthly home loan payment and the total cost of borrowing based on the home price, down payment, loan term, and interest rate. It computes the principal and interest portion using the standard amortizing-loan formula, then can layer in additional homeownership costs such as property taxes, homeowners insurance, private mortgage insurance (PMI), and HOA dues to produce a realistic full monthly outlay often abbreviated as PITI.
The core calculation divides the annual interest rate by twelve to get a monthly rate, raises (1 + monthly rate) to the number of payments, and applies the amortization formula to the loan amount (home price minus down payment). The result is a fixed monthly principal-and-interest payment for fixed-rate loans. Over a 30-year term, total interest can rival or exceed the original loan amount, which is why seeing the full picture matters before committing.
This tool is essential for prospective buyers comparing how price, down payment size, and rate changes affect affordability. A larger down payment lowers both the monthly payment and the total interest, and reaching 20 percent typically lets you avoid PMI. Buyers often pair it with an Amortization Calculator to see the payment-by-payment breakdown and a Refinance Calculator to evaluate whether replacing an existing mortgage makes sense.
Practical tips: experiment with 15-year versus 30-year terms to see the trade-off between higher monthly payments and far lower lifetime interest, and remember that taxes and insurance can add hundreds of dollars beyond the quoted principal and interest. Always confirm the rate you model is realistic for your credit profile, since even a half-point difference can change the payment significantly.
Frequently asked questions
- What does PITI stand for?
- PITI is principal, interest, taxes, and insurance, the four components of a typical monthly mortgage payment. A full estimate may also include PMI and HOA fees.
- How does my down payment affect the payment?
- A larger down payment reduces the loan amount, which lowers both the monthly principal-and-interest payment and total interest. Reaching 20 percent down usually lets you avoid private mortgage insurance.
- Should I choose a 15-year or 30-year mortgage?
- A 15-year term has higher monthly payments but much lower total interest and faster equity building. A 30-year term has lower payments but costs significantly more interest over time.
- What is PMI and when does it apply?
- Private mortgage insurance protects the lender when your down payment is below 20 percent. It adds to your monthly cost and can typically be removed once you build sufficient equity.
- Does the calculator account for property taxes and insurance?
- Yes, you can include property taxes, homeowners insurance, PMI, and HOA dues to estimate the full monthly housing cost rather than just principal and interest.
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Estimate home closing costs
Calculate property tax payments
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