--- title: "Mortgage Calculator - Estimate Your Monthly Payment" description: "See your real monthly mortgage payment — principal, interest, taxes, and insurance — and exactly how much of it goes to the bank in interest over the life of the loan." category: "Financial Calculators" author: "Field Chari" date: 2026-06-28 url: https://digestyourfinances.com/calculators/mortgage-calculator/ --- # Mortgage Calculator - Estimate Your Monthly Payment See your real monthly mortgage payment — principal, interest, taxes, and insurance — and exactly how much of it goes to the bank in interest over the life of the loan. Buying a home is the biggest purchase most people ever make, and the monthly payment is the number that decides whether it fits your life or quietly wrecks your budget. This mortgage calculator gives you the *real* payment — not just principal and interest, but the property taxes and insurance that come with it — so there are no surprises at closing. Enter the home price, your down payment, the interest rate, and the term, and you'll see your full monthly payment, how much of it is interest versus principal, and the total interest you'll pay over the life of the loan. That last number tends to be the eye-opener. ## What's actually in a mortgage payment (PITI) A typical monthly mortgage payment has four parts, often shortened to **PITI**: - **Principal** — the chunk that actually pays down what you borrowed. - **Interest** — the bank's cut, largest in the early years. - **Taxes** — property taxes, usually collected monthly and held in escrow. - **Insurance** — homeowner's insurance, and PMI if your down payment is under 20%. A lot of online calculators only show principal and interest, which makes the payment look smaller than it really is. Taxes and insurance can add several hundred dollars a month, so this tool includes them to give you an honest number. ## How much should you put down? The classic target is **20% down**. Hit it and you typically avoid private mortgage insurance (PMI) — an extra monthly charge that protects the lender, not you — and you start with real equity in the home. The "where you stand" bar under the calculator shows how your down payment stacks up against that 20% mark. That said, you don't *need* 20%. Plenty of loans allow 3–5% down; you'll just pay PMI until you build up to 20% equity. If you're still saving, the [savings-goal calculator](https://digestyourfinances.com/calculators/savings-goal-calculator/) turns your target down payment into a monthly number, and the [where-to-park-cash tool](https://digestyourfinances.com/tools/where-to-park-cash/) helps you keep that growing pile somewhere it actually earns interest instead of losing ground to inflation. ## How much house can you afford? A widely used guideline is the **28/36 rule**: keep your total monthly housing payment under about 28% of your gross monthly income, and *all* your debt payments (housing plus car, student loans, credit cards) under about 36%. Lenders look hard at that second number — your debt-to-income ratio — when deciding what you qualify for. Before you fall in love with a listing, run your numbers through the [debt-to-income calculator](https://digestyourfinances.com/calculators/debt-to-income-calculator/) so you know what's realistic. It's a lot less painful to find your ceiling now than to get talked into a payment that leaves no room for anything else. ## 15-year vs 30-year: the trade-off The loan term is one of the biggest levers you control. Punch both into the calculator and watch what happens: - A **30-year** loan gives you a lower, more flexible monthly payment — but you'll pay dramatically more total interest. - A **15-year** loan has a higher monthly payment and usually a lower rate, and it can save you a fortune in interest over the life of the loan. Neither is "right." A lower payment buys breathing room and flexibility; a shorter term builds equity and frees you faster. The calculator shows the real dollar difference so you can decide with numbers instead of vibes. ## Don't forget the costs around the mortgage The payment isn't the whole story. There are [hidden costs of buying a home](https://digestyourfinances.com/home-buying-hidden-costs/) — closing costs, inspections, maintenance, and the repairs that were the landlord's problem until they became yours. Budget for them so your first year as an owner doesn't blow up your emergency fund. And if you're weighing a home purchase while carrying other debt, two reads worth your time: whether you should [buy a home despite student loans](https://digestyourfinances.com/buy-a-home-despite-having-student-loans/), and the bigger-picture question of whether [buying a home is even a good investment](https://digestyourfinances.com/is-buying-a-home-a-good-investment/) for your situation. ## After you buy: pay it off, or invest? Once you've got a mortgage, a classic question follows: should you make extra payments to kill it early, or invest that money instead? The answer hinges on your rate — and with rates higher than they were a few years ago, paying down the mortgage is more attractive than it used to be. We break down the math in [invest or pay off debt](https://digestyourfinances.com/invest-or-pay-off-debt/) and [should you pay off your mortgage early](https://digestyourfinances.com/should-you-pay-off-your-mortgage-early/). Either way, once you own, track your home's equity alongside the rest of your finances in the free [money dashboard](https://digestyourfinances.com/dashboard/) — watching that loan balance shrink and your net worth climb is one of the more satisfying parts of homeownership.