How Much Is Your
Monthly Payment?

How to Use This Mortgage Calculator

Enter your home price, down payment percentage, interest rate, and loan term to instantly see your monthly payment. Add property tax and homeowner's insurance for your true all-in housing cost (PITI: Principal, Interest, Taxes, Insurance).

Understanding Your Mortgage Payment

Your monthly mortgage payment has two required components and two common additions:

• Principal — the portion reducing your loan balance. Early payments are mostly interest; this grows over time.
• Interest — the lender's fee for the loan, calculated monthly on your remaining balance.
• Property tax — typically 0.5–2.5% of home value annually, collected monthly by the lender and held in escrow.
• Homeowner's insurance — usually $800–$2,000/year, also escrowed by most lenders.

The 28% Rule: How Much House Can You Afford?

A widely used guideline says your monthly housing payment (PITI) should not exceed 28% of your gross monthly income. If you earn $6,000/month before taxes, that's a maximum payment of $1,680. The total debt-to-income ratio (housing + all debts) should stay under 36–43%.

Keep in mind these are guidelines, not laws. Lenders vary, and your personal risk tolerance matters.

30-Year vs. 15-Year Mortgage: Which Is Better?

The 30-year fixed mortgage is the most popular in the US. Monthly payments are lower, giving you more cash-flow flexibility. The 15-year mortgage builds equity faster and carries a lower interest rate (usually 0.5–0.75% less), but payments are roughly 40% higher. A $300,000 loan at 6.75% costs $1,946/month over 30 years vs. $2,655 over 15 — but you pay $224,000 less in total interest with the 15-year.

Should You Put 20% Down?

Twenty percent down eliminates PMI (private mortgage insurance), which costs 0.5–1.5% of the loan annually — roughly $125–$375/month on a $300,000 loan. However, waiting to save 20% in a rising market can cost more than the PMI savings. Many buyers put 5–10% down using conventional loans and cancel PMI once they reach 20% equity through appreciation and principal paydown.