How to use the mortgage Calculator
- Enter the home price and your down payment as a percentage of the price.
- Enter the interest rate and the loan term in years.
- Add yearly property tax and home insurance, plus any monthly HOA or service charge. Use 0 for anything that does not apply.
- If you put down less than 20%, enter your mortgage insurance (PMI) rate. It is dropped automatically once the balance falls to 80% of the price.
- Choose your currency.
- The result updates instantly as you type. There is no button to press.
- Use Copy result to copy the figures, or Copy link to share a link that reopens the mortgage Calculator with the same inputs.
How it works
A mortgage payment is more than the loan itself. Lenders often quote PITI: principal, interest, taxes and insurance. In many countries the lender collects property tax and insurance through an escrow account and adds them to the monthly bill. This calculator shows the full figure as well as the principal-and-interest part on its own.
The principal-and-interest part uses the standard amortization formula: equal monthly payments that cover each month's interest and gradually repay the balance. Taxes and insurance are divided by 12. If your down payment is under 20%, many lenders in the US and Canada require private mortgage insurance (PMI). The calculator charges PMI on the remaining balance and drops it once the balance reaches 80% of the purchase price, the point at which you can usually ask for it to be removed.
Use the yearly table to see how slowly the balance falls in the early years of a long mortgage, and try a 15-year term or a larger down payment to see how much interest you could save. Outside North America, set PMI to 0 and use the HOA field for service charges or ground rent.
Formula
L is the loan (price minus down payment), r the monthly rate (annual rate ÷ 1200) and n the number of months. Monthly PMI = balance × PMI rate ÷ 1200 while the balance is above 80% of the price.
Example
A $400,000 home with 20% down ($80,000) needs a $320,000 loan. At 6.5% over 30 years, principal and interest come to about $2,022.62 a month. Add $4,800 a year of property tax ($400 a month) and $1,500 of insurance ($125 a month) and the full payment is about $2,547.62. With 20% down there is no PMI. Over 30 years you would pay roughly $408,142 in interest, more than the amount borrowed.
Frequently asked questions
How much house can I afford?
A common rule of thumb is that housing costs should stay 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.
Is a 15-year or 30-year mortgage better?
A 15-year loan has higher monthly payments but usually a lower rate and far less total interest. A 30-year loan keeps payments lower and more flexible. Compare both here by changing the term.
When does PMI go away?
In the US, you can usually ask to cancel PMI once your balance reaches 80% of the original home value, and it ends automatically at 78%. This calculator removes it at 80%. Rules vary by lender and loan type.
Does this include closing costs?
No. Closing costs, such as lender fees, title insurance and transfer taxes, are paid upfront and typically run 2–5% of the price. Budget for them separately.
Disclaimer: This calculator gives estimates for general information and education. It is not financial, tax or investment advice. Lenders, banks and tax authorities may round differently, charge fees or apply rules this tool does not model, so confirm figures with a qualified professional or your provider before making decisions.