Estimate your monthly payment and visualize your loan payoff schedule.
Use this free mortgage calculator to estimate your monthly house payment, including principal and interest. Simply enter the home price, your down payment, and the loan terms to see exactly how much you can afford. If you're still shopping, browse today's mortgage rates to find a competitive offer to plug in.
Monthly Payment Estimator
Estimate your monthly mortgage payment including principal and interest.
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How a Mortgage Calculator Works
A mortgage calculator helps you estimate your monthly payment by taking into account the home price, your down payment, the interest rate, and the loan term. It uses an amortization formula to determine how much of your payment goes toward the principal balance and how much goes toward interest.
Mortgage Definitions
How to Use the Mortgage Calculator
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Enter the home price
Type in the purchase price of the home you're considering. If you're not sure yet, use a price near the top of your comfortable range to see whether the payment fits your budget.
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Enter your down payment
Enter the amount you plan to put down. A 20% down payment is the traditional benchmark because it lets you avoid private mortgage insurance (PMI), but conventional loans often allow as little as 3% to 5% down.
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Set the interest rate and term
Enter the interest rate you've been quoted and pick a loan term — usually 15, 20, or 30 years. Longer terms lower your monthly payment but add tens of thousands of dollars in interest over the life of the loan.
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Review your monthly payment
The calculator shows your principal & interest payment along with the amortization schedule. Remember that your full housing cost will include property taxes, homeowners insurance, and possibly PMI — budget at least 25% to 35% on top of the P&I figure for those.
How Much House Can You Afford?
The calculator tells you what a given home price costs per month, but the harder question is what you can actually afford. Two rules of thumb get you most of the way there:
The 28/36 rule. Lenders generally want your housing payment (P&I + taxes + insurance + HOA) to stay under 28% of your gross monthly income, and your total debt payments under 36%. On a $90,000 household income, that's roughly $2,100 per month for housing and $2,700 per month for housing plus all other debt combined.
The "stress test" rule. If a one-percentage-point rate increase or a $200/month property tax bump would make the payment uncomfortable, the home is probably stretching you. The MBR Housing Affordability Index is a useful sanity check on whether prices in your market are aligned with local incomes. For a more precise number based on your income and existing debt, try the mortgage affordability calculator.
Signs you can afford the house
- Total housing payment is under 28% of your gross monthly income
- You'd still have a 3-to-6 month emergency fund after closing
- You're saving at least 10% to 15% toward retirement separately
- The down payment doesn't drain every account you own
- You're not relying on overtime, bonuses, or a second job to make the payment work
Signs you may be stretching
- Housing payment pushes past 30% of gross income
- Closing costs and the down payment would empty your savings
- You'd need to pause retirement contributions to afford it
- A small rate or tax increase would make the payment unworkable
- You're counting on home appreciation to "make the math work"
One thing to remember: the loan amount the bank approves you for is usually larger than the loan amount that's comfortable to live with. Lenders look at your debt-to-income ratio, not your savings goals, your kids' college fund, or how much you actually want to spend on travel and groceries. Borrow what fits your life, not what fits the underwriter's spreadsheet.
Frequently Asked Questions
What is PITI?
PITI stands for Principal, Interest, Taxes, and Insurance. While this calculator focuses on Principal and Interest, your actual monthly bill will likely be higher because lenders often collect property taxes and homeowners insurance premiums in an escrow account along with your loan payment.
How can I lower my monthly payment?
You can lower your payment by making a larger down payment, securing a lower interest rate, or choosing a longer loan term (e.g., 30 years instead of 15). Removing private mortgage insurance (PMI) once you have 20% equity also helps. Buying "points" upfront to lower the rate can reduce the payment too, though it only pays off if you stay in the home long enough.
What is an amortization schedule?
An amortization schedule is a table that shows every payment you will make over the life of the loan. It breaks down how much of each payment goes to principal versus interest. In the early years, most of your payment goes to interest; in the later years, the balance flips and most goes to principal.
What is PMI and how do I avoid it?
Private mortgage insurance protects the lender (not you) if you default. It's typically required when your down payment is less than 20% on a conventional loan, and usually adds 0.3% to 1.5% of the loan amount per year to your monthly payment. You can avoid PMI by putting 20% down or by using a VA loan if you qualify. On most conventional loans, PMI automatically drops off when your loan balance reaches 78% of the original purchase price.
Should I choose a 15-year or a 30-year mortgage?
A 15-year loan typically carries a lower interest rate and dramatically less lifetime interest, but the monthly payment is much higher. Choose a 15-year if you can comfortably afford the higher payment and want to be debt-free faster. Pick a 30-year if you'd rather keep the lower payment for cash-flow flexibility — you can always send extra principal voluntarily, which captures most of the benefit of a 15-year without the rigid commitment.
What's the difference between a fixed-rate mortgage and an ARM?
A fixed-rate mortgage locks your interest rate for the entire loan term. An adjustable-rate mortgage (ARM) starts with a fixed rate for an initial period — commonly 5, 7, or 10 years — then adjusts annually based on a benchmark index. ARMs usually start with a lower rate than fixed loans, which can save money if you'll move or refinance before the adjustment period, but they carry the risk of higher payments later if rates rise.
What are mortgage "points" and are they worth it?
Discount points are an upfront fee you pay to lower your interest rate. One point typically costs 1% of the loan amount and reduces your rate by about 0.25%. Points pay off only if you keep the loan long enough — usually 5 to 7 years — to recoup the upfront cost through lower monthly payments. If you might move, refinance, or sell sooner, points usually don't make sense.
What are typical mortgage closing costs?
Most homebuyers pay 2% to 5% of the loan amount in closing costs. On a $300,000 loan, that's roughly $6,000 to $15,000. Costs include the lender's origination fee, appraisal, title insurance, recording fees, and prepaid items like the first year of homeowners insurance and a few months of property taxes deposited into escrow.
How much down payment do I really need?
The traditional benchmark is 20% because it lets you avoid PMI, but you don't need that much to qualify. Conventional loans often go as low as 3% to 5% down. FHA loans require 3.5% down with a credit score of 580 or higher. VA loans (for qualifying veterans) and USDA loans (in eligible rural areas) allow zero down. The trade-off with a smaller down payment is a higher monthly payment plus PMI, plus less equity if home prices fall in the early years.
