Calculate Your Mortgage
Taxes, Insurance & PMI (Optional)
Required when down payment < 20%
This mortgage calculator is for informational and educational purposes only and does not provide financial or lending advice. Actual rates and terms depend on your lender, location, and financial profile.
What is a Mortgage Calculator?
A mortgage calculator is a financial planning tool that helps prospective homebuyers estimate their monthly mortgage payments before committing to a home purchase. It considers the home price, down payment, interest rate, loan term, and additional costs like property taxes, homeowners insurance, and Private Mortgage Insurance (PMI).
This calculator provides a comprehensive payment breakdown known as PITI (Principal, Interest, Taxes, Insurance), generates a complete amortization schedule, and offers AI-assisted financial insights to help you make an informed decision.
How the Mortgage Calculator Works
The Mortgage Payment Formula
M = P[r(1+r)n] / [(1+r)n – 1]
P = Loan Amount
Home price minus down payment.
r = Monthly Rate
Annual interest rate ÷ 12 ÷ 100.
n = Total Payments
Loan term in years × 12.
What's Included in PITI
Principal
Reduces your loan balance each month.
Interest
The cost of borrowing money from the lender.
Taxes
Annual property taxes divided by 12.
Insurance
Homeowners insurance + PMI if applicable.
15-Year vs. 30-Year Mortgage Comparison
| Feature | 15-Year | 30-Year |
|---|---|---|
| Monthly Payment | Higher | Lower |
| Interest Rate | Typically 0.5–1% lower | Standard |
| Total Interest Paid | Significantly less | Much more |
| Equity Building | Faster | Slower |
| Best For | Higher income, want to save on interest | Lower monthly budget, flexibility |
Tips for Getting the Best Mortgage
Save 20% Down
Avoid PMI and get better rates with a 20% down payment. Even 10% down helps significantly.
Boost Your Credit Score
A score above 740 qualifies you for the best rates. Pay down debts and fix errors first.
Shop Multiple Lenders
Get at least 3 quotes. Even a 0.25% rate difference saves thousands over 30 years.
Consider Total Cost
Don't just look at monthly payment. Compare total interest over the life of each loan option.
Get Pre-Approved
A pre-approval letter shows sellers you're serious and locks in a rate for 60-90 days.
Budget for Closing Costs
Expect 2-5% of the home price in closing costs on top of your down payment.
Frequently Asked Questions
How is a monthly mortgage payment calculated?
M = P[r(1+r)^n]/[(1+r)^n–1]. P = loan amount, r = monthly rate, n = total payments. Taxes, insurance, and PMI are added separately to get the total PITI payment.
What is PMI and when is it required?
PMI is required when your down payment is less than 20%. It costs 0.5–1% of the loan annually and protects the lender. It can be removed once you reach 20% equity.
15-year vs. 30-year mortgage?
15-year: higher payments, much less interest. 30-year: lower payments, more interest overall. Choose based on your budget and goals.
What is PITI?
PITI = Principal + Interest + Taxes + Insurance. It's the total monthly housing cost used by lenders to determine affordability.
How much house can I afford?
Keep total housing costs below 28% of gross monthly income, and total debt below 36%. This is known as the 28/36 rule.
What is an amortization schedule?
A table showing every payment broken into principal and interest. Early payments are mostly interest; later payments are mostly principal.