Housing
Mortgage Calculator
Estimate a monthly mortgage payment with principal, interest, taxes, insurance, and HOA dues. Use this to figure out what a home actually costs each month before you talk to a lender.
Housing
Mortgage Calculator
Result
How to use this calculator
Plug in five numbers and you'll have an honest first estimate of a monthly mortgage payment: the home price, your down payment, the interest rate (APR), the loan term, and your best guesses for annual property taxes, homeowners insurance, and any HOA dues.
The first four are the heart of the calculation — they determine your principal and interest. The next three (taxes, insurance, HOA) round it out into what lenders call PITIA: principal, interest, taxes, insurance, and association dues. Mortgage lenders almost always require taxes and insurance to be paid through an escrow account that adds to your monthly payment, so a calculator number without them isn't realistic.
If you don't yet know your local property tax rate or homeowners insurance, use 1.1% of the home price for taxes (the US national median sits between 1.0% and 1.3%) and roughly $1,500 per year for insurance as starting placeholders. Refine those numbers later when you have actual quotes from a lender and an insurer.
What your result means
The monthly payment estimate is the dollar amount that would leave a checking account each month for someone buying this home at this rate, with this loan structure. It includes principal and interest (the lender's portion), plus the escrow components — property taxes and homeowners insurance — collected and distributed by your loan servicer on your behalf.
What it doesn't include is just as important: utilities, ongoing maintenance reserves, HOA special assessments beyond regular dues, or PMI (private mortgage insurance), which most lenders require when a down payment falls below 20%. PMI typically adds 0.3% to 1.5% of the loan balance annually, depending on credit score and loan-to-value ratio. If the down payment in your calculation is under 20%, the real monthly bill will likely run $100 to $300 higher than what's shown here.
Multiply the estimated monthly payment by twelve, then divide by your gross annual income. If the result is above 28%, you're stretching. Above 35%, lenders will let you do it; financial planners generally won't recommend it.
What the math leaves out
A calculator works with the numbers you provide. A real mortgage application factors in things this tool doesn't know: your credit score, your debt-to-income ratio, your employment history, the loan type (conventional, FHA, VA, USDA), whether the property is a primary residence or an investment, and whether you're in a state or zip code with unusual property tax structures.
It also can't see the deal you can actually negotiate. The rate advertised online is the best-case quote for a high-credit-score borrower with 20%+ down on a conforming loan. The rate offered to most borrowers comes in 0.25% to 1.5% higher depending on those personal factors. That matters more than it sounds: a half-point rate difference on a $400,000 loan is roughly $115 per month, which compounds to about $41,000 over the life of a 30-year mortgage.
Three common mortgage mistakes first-time buyers make
Anchoring on the maximum approval amount. Banks routinely pre-approve buyers for monthly payments that consume 35% to 40% of gross income. That's the regulatory ceiling, not a recommendation. Most financial planners suggest keeping total housing costs — including utilities and maintenance — under 28% of gross income for healthy long-term flexibility. Use this calculator to find the payment you're genuinely comfortable with, then work backwards to the home price that fits, not the other way around.
Forgetting closing costs. Closing costs typically run 2% to 5% of the home price and are not included in this calculator. On a $400,000 home, that's an additional $8,000 to $20,000 in cash needed at signing, on top of the down payment itself. Build that into your savings target before getting serious about house-shopping. Closing costs often surprise buyers who budgeted to the dollar for the down payment alone.
Treating the interest rate as fixed before locking it. Mortgage rates move daily — sometimes hourly — between pre-approval and closing. The rate quoted in a pre-approval letter is not necessarily the rate at the closing table. Ask any prospective lender about rate-lock options and what triggers them. Locking too early can cost flexibility if rates drop; locking too late can cost real money if they rise.
When this calculator is useful — and when you need a real lender
This calculator is well-suited to early-stage questions. How much house can someone in this income range roughly afford? What does a monthly payment look like at this price point? How does a 15-year compare to a 30-year for the same home? Those are the right questions to answer before talking to anyone.
It's not the right tool for late-stage questions. What rate will you actually qualify for? What are the closing costs on this specific house in this specific zip code? Should you go with a conventional loan or an FHA loan? Those need a real lender, ideally two or three for quote comparison, and possibly a mortgage broker who can shop multiple lenders simultaneously.
A reasonable working rule: use this calculator for the first thirty minutes of any home-buying conversation, then put it down and start talking to humans.
Frequently asked questions
What's the difference between a 30-year and 15-year mortgage?
A 30-year mortgage has a lower monthly payment but you pay roughly 2-3x more in total interest over the life of the loan. A 15-year mortgage typically comes with a lower interest rate (around 0.5% to 1% below the 30-year), so the savings compound. On a $400,000 loan at 7% (30-year) vs 6.25% (15-year), the monthly payments are roughly $2,660 vs $3,430, but total interest paid is about $558,000 vs $217,000 — a difference of $341,000.
How much house can I afford?
A common benchmark is the 28/36 rule: spend no more than 28% of your gross monthly income on housing (PITI), and no more than 36% on total debt payments combined. For a household earning $100,000 a year ($8,333/month), that suggests a maximum housing payment of about $2,333. Our House Affordability Calculator works backwards from this to a home price target.
Do I need 20% down to buy a house?
No, but it changes the math. Conventional loans typically require 5-20% down, FHA loans accept 3.5% down, and VA loans (for eligible veterans) allow 0% down. The catch with anything under 20% is private mortgage insurance (PMI), which adds 0.3% to 1.5% of the loan amount annually until you reach 20% equity. PMI can add $100-$300 to your monthly payment depending on your loan size and credit.
What is escrow and is it required?
Escrow is an account your lender manages to collect property taxes and homeowners insurance with each mortgage payment, then pays those bills on your behalf. Most lenders require escrow when your down payment is under 20%. With 20%+ down, you can often opt out and pay taxes and insurance yourself, but you'll need to set aside the cash discipline-fully — these bills arrive in large lump sums.
Should I pay points to lower my interest rate?
Each point costs 1% of the loan amount upfront and typically lowers your rate by 0.25%. The math comes down to your break-even period: divide the cost of the points by the monthly savings, and that's how many months you need to stay in the home to come out ahead. If your break-even is 5 years and you plan to stay 10+ years, points usually make sense. If you might move or refinance within 5 years, they often don't.
What happens if I make extra mortgage payments?
Any extra payment applied to principal reduces both your loan balance and your total interest over time. On a $400,000 30-year mortgage at 7%, adding just $200 per month to principal pays off the loan about 6 years early and saves roughly $130,000 in interest. Confirm with your lender that extra payments are being applied to principal, not to the next month's payment.
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A note on this estimate
WalletCalcs provides educational estimates only. Results are not financial, tax, lending, legal, or investment advice. Always confirm important decisions with the appropriate professional or provider.