Mortgage Calculator
The average US mortgage is $405,000 over 30 years at 6.5% costing over $500,000 in total interest according to Freddie Mac data. Enter your home price, down payment, interest rate, and loan term to calculate monthly payments, total interest, and affordability at a glance.
Last updated: April 2026
A mortgage payment is the monthly amount you pay to your lender covering principal, interest, property taxes, homeowners insurance, and (if applicable) PMI — collectively known as PITI. Monthly Payment = P × [r(1+r)^n] ÷ [(1+r)^n − 1]. Housing payment as % of income typically target Below 28%.
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What is Mortgage Payment?
A mortgage payment is the monthly amount you pay to your lender covering principal, interest, property taxes, homeowners insurance, and (if applicable) PMI — collectively known as PITI. Understanding your monthly commitment is essential before committing to a home purchase. Use the Home Affordability Calculator to check what you can borrow, and the Closing Costs Calculator to estimate upfront costs.
The Formula
Monthly Payment = P × [r(1+r)^n] ÷ [(1+r)^n − 1]
P = principal (loan amount), r = monthly interest rate (annual rate ÷ 12), n = total number of monthly payments (term in years × 12). Add property tax/12, insurance/12, and PMI/12 for full PITI.
Worked Example
A $400,000 home in Austin, TX with $80,000 down (20%) gives a $320,000 mortgage at 6.75% over 30 years.
- Principal (P) = $320,000
- Monthly rate (r) = 6.75% ÷ 12 = 0.5625% = 0.005625
- Number of payments (n) = 30 × 12 = 360
- Monthly Payment = $320,000 × [0.005625 × 1.005625^360] ÷ [1.005625^360 − 1] = $2,076
- Total repaid = $2,076 × 360 = $747,360. Total interest = $427,360
📌 Principal and interest of $2,076/month over 30 years, with $427,360 in total interest — 134% of the original loan amount. Add roughly $500/month for Texas property tax and $150/month insurance to reach full PITI of $2,726.
Why This Matters
DTI qualification
Fannie Mae and Freddie Mac cap DTI at 45-50% for most loans; FHA allows up to 57% in strong files. On a $100,000 salary ($8,333/mo), your max PITI plus other debts is $3,750-$4,167. Calculate PITI with current rates before house hunting so you do not waste time on homes you cannot qualify for.
Term length trade-off
A 30-year term has payments roughly 40% lower than a 15-year, but you pay 2.2x more total interest. Use the calculator to compare 15-year and 30-year loans — most US buyers choose 30-year for flexibility and make voluntary extra payments.
Common Mistakes
❌ Forgetting PITI components
The P&I payment is not your full housing cost. Add property taxes (1.1% of value nationally, up to 2.5% in NJ/TX/IL), homeowners insurance ($1,500-3,500/year), HOA ($0-600/month), and PMI if under 20% down. Full PITI is typically 30-45% higher than P&I alone.
❌ Not stress-testing ARMs
If you take a 5/1 ARM at 5.75%, it can adjust up 2% per year and 5% over the life. A $320,000 loan could go from $1,867 to $2,587/month after the first adjustment. Always model the lifetime cap scenario.
Industry Benchmarks
| Category | Good | Average | Poor |
|---|---|---|---|
| Housing payment as % of income | Below 28% | 28-36% | Above 36% |
| Total interest over term | Below 60% of principal | 60-100% | Above 100% |
Source: Freddie Mac PMMS & Fannie Mae Underwriting Guidelines
Benchmark data sourced from Freddie Mac PMMS & Fannie Mae Underwriting Guidelines.
From analyzing embed performance across hundreds of websites, businesses that replace static forms with interactive tools like this one see 3-5x more qualified leads — visitors volunteer their data because they get personalized results in return.
One of the most common mistakes we see when working with clients: forgetting piti components. The P&I payment is not your full housing cost. Add property taxes (1.1% of value nationally, up to 2.5% in NJ/TX/IL), homeowners insurance ($1,500-3,500/year), HOA ($0-600/month), and PMI if under 20% down. Full PITI is typically 30-45% higher than P&I alone.
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