Calculator guide
Who this calculator is for
Home buyers comparing mortgage affordability, term length and interest-rate scenarios across US, UK, Australia, and Canada.
Understand the likely total monthly out-of-pocket cost before making an offer, refinancing or choosing between loan terms.
Formula used
Monthly mortgage payment (P&I) is calculated using P × r × (1 + r)^n / ((1 + r)^n - 1). Total Payment (PITI) = P&I + (Annual Property Tax / 12) + (Annual Home Insurance / 12) + Monthly PMI + Monthly HOA.
The calculator keeps the math visible so users can understand what changed when they adjust rate, time, contribution, tax rate or loan amount.
Example: $400,000 Home with 20% Down at 6.5%
How to get a useful result
For the best estimate, use realistic rates, verify lender or tax assumptions, and run at least one conservative scenario. This makes the page more useful than a bare calculator and helps visitors stay longer because they can compare outcomes instead of leaving after one number.
Frequently asked questions
A standard home loan payment consists of four main parts, known as PITI: Principal (the amount you borrowed), Interest (the cost of borrowing), Taxes (property taxes), and Insurance (homeowners insurance). If you put down less than 20%, it may also include Private Mortgage Insurance (PMI).
They are essentially the same thing. 'Mortgage' is the legal term for a loan secured by real estate, which is common in the US, UK, and Canada. 'Home loan' is a broader term used interchangeably.
A common rule of thumb is the 28/36 rule: Your total housing costs (PITI) shouldn't exceed 28% of your gross monthly income, and your total debt payments shouldn't exceed 36%.
No. Many loan programs allow down payments as low as 3% or 3.5% (like FHA loans), and VA or USDA loans allow 0% down. However, putting down less than 20% usually requires you to pay Private Mortgage Insurance (PMI).
Private Mortgage Insurance (PMI) protects the lender if you default. You must pay it if your down payment is under 20%. You can request to remove PMI once your loan balance drops to 80% of the home's original value, and lenders must automatically drop it at 78%.
A 15-year mortgage has higher monthly payments but lower interest rates, saving you tens of thousands in interest over the life of the loan. A 30-year mortgage has lower monthly payments, making it easier to qualify for, but costs more in long-term interest.
A fixed-rate mortgage keeps the same interest rate for the entire life of the loan. An ARM typically has a lower initial rate for a set period (e.g., 5 or 7 years), after which the rate adjusts annually based on market conditions.
Making extra principal payments reduces your outstanding balance faster, which means less interest accrues over time. Even one extra payment a year can shave years off your loan term and save thousands of dollars.
Closing costs are fees paid to finalize the mortgage, including appraisal fees, title insurance, loan origination fees, and prepaid taxes. They typically range from 2% to 5% of the total loan amount.
An escrow account is managed by your lender to pay your property taxes and homeowners insurance on your behalf. A portion of your monthly payment goes into this account, and the lender pays the bills when they are due.
Yes. In the early years of a mortgage, most of your payment goes toward interest. A higher interest rate means even less of your monthly payment goes toward paying down the principal balance.
Paying 'discount points' means paying an upfront fee to lower your interest rate. It can be worth it if you plan to stay in the home for a long time (past the 'break-even' point), but may not make sense if you plan to move or refinance soon.
Amortization is the process of paying off debt through regular principal and interest payments over time. An amortization schedule details exactly how much of each payment goes toward interest versus principal.
Yes. Refinancing replaces your current loan with a new one. People typically refinance to get a lower interest rate, switch from an ARM to a fixed-rate loan, or tap into their home equity (cash-out refinance).
Because most lenders require property taxes and homeowners insurance to be included in your monthly payment (via escrow). If your down payment was less than 20%, PMI is also added to the monthly cost.
If property taxes or homeowners insurance premiums increase, your total monthly payment will increase, even if you have a fixed-rate mortgage, because the escrow portion of your payment must adjust.
No. Homeowners Association (HOA) fees are usually paid directly to the association, not to your mortgage lender. However, lenders factor HOA fees into your debt-to-income ratio when qualifying you for the loan.
Interest is calculated monthly based on your outstanding principal balance. As you pay down the balance, the amount of interest charged each month decreases, and more of your payment goes toward principal.
In the United States, you can often deduct mortgage interest on the first $750,000 of mortgage debt if you itemize your deductions. Tax laws vary by country and change frequently, so consult a tax professional.
An FHA loan is backed by the Federal Housing Administration (US) and is designed for low-to-moderate-income borrowers. They require lower minimum credit scores and down payments as low as 3.5%, but require Mortgage Insurance Premiums (MIP).
A VA loan is guaranteed by the Department of Veterans Affairs (US) and is available to eligible military veterans, service members, and their spouses. It offers 0% down payments and no private mortgage insurance (PMI).