This mortgage calculator estimates the full monthly cost of buying a home, not just the loan payment. Enter the home price, your down payment as a percentage or an amount, the interest rate and the loan term, and it shows the principal and interest plus property tax, homeowners insurance, private mortgage insurance (PMI) and HOA fees, the parts lenders call PITI.
A colour bar and table break the payment into each part, and the summary shows the loan amount, total interest and the total of all loan payments. The yearly amortization table shows how quickly you build equity. Change the down payment or compare a 15-year with a 30-year term to see how much interest you save.
How to use the Mortgage Calculator tool
- Enter the home price and your down payment, as a % or an amount.
- Enter the interest rate and choose the loan term.
- Add yearly property tax and home insurance, the PMI rate and monthly HOA fees if they apply.
- Read your total monthly payment and its breakdown.
- Check the yearly amortization table to see interest paid and the balance left each year.
Why use ToolOrca Mortgage Calculator
- Full PITI payment: principal, interest, tax, insurance
- PMI added automatically below 20% down
- HOA fees included
- Down payment as percent or amount
- Total interest and yearly amortization table
- Works with any currency
How your monthly mortgage payment is calculated
The loan part uses the amortization formula M = P × r × (1 + r)n ÷ ((1 + r)n − 1), where P is the loan amount (home price minus down payment), r is the yearly rate ÷ 12 and n is the number of months. Property tax and insurance are yearly costs divided by 12. PMI is usually 0.3%–1.5% of the loan per year and applies when you put down less than 20%.
Worked example: a $400,000 home with 20% down ($80,000) leaves a $320,000 loan. At 6.5% for 30 years the principal and interest are $2,022.62 a month. Adding $4,800 a year of property tax ($400 a month) and $1,500 of insurance ($125 a month) gives a total of $2,547.62. Over 30 years the interest alone comes to about $408,142.
The same loan over 15 years costs $2,787.54 a month in principal and interest, but the total interest drops to about $181,758, saving more than $226,000.
How much house can you afford?
A common guideline is the 28/36 rule: keep your total housing payment under 28% of your gross monthly income and all debt payments under 36%. With a $2,547 payment that means an income of roughly $9,100 a month, or about $109,000 a year. Remember closing costs (often 2%–5% of the price), maintenance and utilities as well.
This calculator is for information only and is not financial advice. Actual rates, taxes, insurance and PMI depend on your lender, location and credit.
Frequently asked questions
What is the monthly payment on a $320,000 mortgage at 6.5% for 30 years?
The principal and interest are $2,022.62 a month. Property tax, insurance, PMI and HOA fees come on top of that.
What does PITI mean?
Principal, interest, taxes and insurance: the four parts of a typical monthly mortgage payment when taxes and insurance are paid through an escrow account.
When do I have to pay PMI?
On a conventional loan, usually when your down payment is less than 20% of the home price. It can normally be removed once you owe 80% or less of the home’s original value, and it ends automatically at 78%.
Is a 15-year or a 30-year mortgage better?
A 15-year loan has higher payments but a lower rate and far less total interest. A 30-year loan has lower payments and more flexibility. On $320,000 at 6.5%, the 15-year term saves about $226,000 of interest.
Is this mortgage estimate exact?
No. It is an estimate for information only, not financial advice. Lenders may add fees, and your real tax and insurance bills may differ.