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| # | Principal | Interest | Extra | Total | Balance |
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⚖️ Compare Loan Scenarios
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🏠 How Much House Can I Afford?
Enter your financial details below to estimate your homebuying budget.
What is a Mortgage Calculator?
A mortgage calculator is a free online tool that estimates your monthly loan payment based on the loan amount, interest rate, and loan term. Whether you're buying a house, financing a car, or taking out a personal loan, this calculator helps you understand exactly how much you'll pay each month and how much interest you'll pay over the life of the loan.
How to Use This Calculator
- Loan Amount: The total amount you're borrowing from a lender.
- Down Payment: Optional amount you pay upfront. The calculator subtracts this from the loan amount.
- Annual Interest Rate: The yearly interest rate on your loan (e.g., 6.5%).
- Loan Term: The number of years over which you'll repay the loan (common terms: 15, 20, or 30 years).
- Advanced Options: Add property taxes, insurance, PMI, HOA fees, and extra payments for a complete picture.
Understanding PITI
PITI stands for Principal, Interest, Taxes, and Insurance — the four components of a typical mortgage payment. Lenders use PITI to determine how much you can afford. A good rule of thumb is to keep your total housing payment below 28% of your gross monthly income.
Two Common Calculation Methods
1. Equal Monthly Payments (Amortizing): The most common method used for mortgages and auto loans. You pay the same total amount each month, but the split between principal and interest shifts over time — more interest early on, more principal later.
2. Declining Balance (Fixed Principal): You pay a fixed principal amount each month, plus interest on the remaining balance. Your monthly payment starts higher but decreases over time, and you pay less total interest.
Frequently Asked Questions
How much house can I afford? A common guideline is 2.5–3x your annual income, though this depends on your debts, down payment, and credit score. Use our Affordability Calculator above for a personalized estimate.
Is a 15-year or 30-year mortgage better? A 15-year term has higher monthly payments but saves significantly on total interest. A 30-year term has lower monthly payments but costs more overall.
What is PMI? Private Mortgage Insurance is typically required when your down payment is less than 20% of the home price. It protects the lender if you default. PMI usually costs 0.3%–1.5% of the loan amount annually.
How do extra payments help? Extra payments go directly toward your principal, reducing your balance faster. This means less interest paid over time and a shorter loan term. Use the Extra Payment field above to see your potential savings.
Does this calculator include taxes and insurance? Yes — enable Advanced Options to add property taxes, home insurance, PMI, and HOA fees for a complete monthly payment estimate.