Mortgage Calculator: How to Estimate Your Monthly Payments, Interest, and Affordability

Buying a home is the biggest financial decision most people ever make, and your monthly mortgage payment determines what you can actually afford. But the listed price is just the beginning — interest rates, loan term, property taxes, insurance, and down payment all affect what you’ll pay each month. Our Mortgage Calculator helps you see the full picture in seconds.

Key Inputs That Affect Your Monthly Payment

Input	What It Means	Typical Range
Home Price	The purchase price of the property	Varies by market
Down Payment	Amount paid upfront as a percentage of price	3–20% (conventional), 3.5% (FHA), 0% (VA/USDA)
Interest Rate	Annual percentage rate on your loan	6–8% (2025 rates)
Loan Term	How long you have to repay the loan	15 or 30 years (most common)
Property Tax	Annual tax as a percentage of home value	0.5–2.5% depending on location
Home Insurance	Annual insurance premium	$800–$2,000/year
PMI	Private mortgage insurance (if down payment <20%)	0.5–1.5% of loan amount/year

Sample Payment Breakdown: $400,000 Home

Scenario	30-Year Fixed	15-Year Fixed
Down Payment (20%)	$80,000	$80,000
Loan Amount	$320,000	$320,000
Interest Rate	7.0%	6.5%
Principal + Interest	$2,129/month	$2,788/month
+ Property Tax	~$333/month (1%)	~$333/month
+ Insurance	~$100/month	~$100/month
Total Monthly	~$2,562	~$3,221
Total Interest Paid	~$446,000	~$182,000

Notice the 15-year loan saves you over $264,000 in interest — but costs $659 more per month. Which is better depends on your cash flow and financial goals.

How Much Home Can You Afford?

Most lenders follow the 28/36 rule: no more than 28% of your gross monthly income on housing costs, and no more than 36% on total debt (housing + car loans + student loans + credit cards).

• If you earn $6,000/month: Max housing = $1,680/month. Max total debt = $2,160/month
• If you earn $8,000/month: Max housing = $2,240/month. Max total debt = $2,880/month
• If you earn $12,000/month: Max housing = $3,360/month. Max total debt = $4,320/month

Use our Mortgage Calculator to try different down payments, interest rates, and loan terms. Experimenting with the numbers before you start house hunting helps you set a realistic budget and avoid falling in love with a home you can’t afford.