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Mortgage Calculator

Your monthly mortgage cost is principal and interest plus property tax, insurance and any association fee, often called PITI. Enter the price, deposit, rate and term, then add tax and insurance to see the full payment. A 350,000 home with 20% down at 6.5% over 30 years is about 1,770 a month before tax and insurance.

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Please note

This calculator is a general illustration, not financial advice. Lenders apply their own fees, rounding rules and day-count conventions, so a real quote will differ. Always check the figures with the provider before committing.

How to use the Mortgage Calculator

  1. 1Enter the home price and your deposit, either as an amount or a percentage.
  2. 2Set the interest rate and the loan term.
  3. 3Add annual property tax, home insurance and any monthly association fee.
  4. 4Read the total monthly payment and the breakdown beneath it.

How it works

The loan amount is the price less your deposit. Principal and interest are calculated with the standard annuity formula on that amount. Annual property tax and insurance are divided by twelve and added, along with any monthly association fee — the combination lenders often call PITI.

Separating these matters, because only principal and interest shrink the debt. Tax and insurance are ongoing costs that continue after the mortgage is repaid, and they are frequently the reason a monthly payment is larger than a rate calculator suggested.

The amortisation schedule shows principal and interest only, since that is the part that actually pays down the loan.

The formula

monthly = (L × r × (1 + r)ⁿ ÷ ((1 + r)ⁿ − 1)) + tax/12 + insurance/12 + HOA
L
loan amount, the price minus the deposit
r
monthly interest rate
n
number of monthly payments over the term

Worked example

A 350,000 home with 20% down at 6.5% over 30 years

  1. Deposit 70,000, so the loan is 280,000.
  2. Monthly rate 0.0054167 over 360 payments gives principal and interest of about 1,770.
  3. Add 4,200 a year of tax (350) and 1,200 of insurance (100).

Result: About 2,220 a month in total, of which 1,770 goes to the mortgage itself.

Tips and common mistakes

  • Include property tax and insurance; they are often the reason a monthly payment is higher than a simple rate calculator suggested.
  • Compare a 15-year and a 30-year term. The shorter term costs more each month and far less in total.
  • Try different deposits to see how much each extra amount lowers the monthly payment.
  • Leave room in your budget for maintenance and repairs, which no mortgage payment covers.

Frequently asked questions

What does PITI mean?
Principal, Interest, Taxes and Insurance — the four components most lenders bundle into one monthly payment.
How much deposit do I need?
That depends on the lender and the product. Putting down 20% commonly avoids mortgage insurance, but lower-deposit products exist. Try different figures to see the effect on the monthly payment.
Is mortgage insurance included?
Not as a separate line. If your lender requires it, add its monthly cost to the insurance field.
Why does the total interest look so large?
Because a 30-year term means borrowing for three decades. Shortening the term raises the monthly payment but cuts total interest dramatically — worth comparing here before you decide.
How much interest does a shorter mortgage save?
On 280,000 at 6.5%, a 30-year loan costs about 1,770 a month and roughly 357,000 in interest. Over 15 years it is about 2,439 a month and roughly 159,000 in interest — around 198,000 less.
What is the difference between principal and interest?
Principal is the part of each payment that reduces what you owe. Interest is the lender's charge for the money still outstanding. Early payments are mostly interest; later ones are mostly principal.
Are closing costs included?
No. The calculator covers the monthly payment: principal, interest, property tax, insurance and any association fee. One-off purchase costs vary by country and lender.
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