Mortgage Calculator with Taxes, Insurance and Amortization (2024)

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How to use our mortgage calculator to estimate a mortgage payment

Our calculator helps you find how much your monthly home loan payment could be. You only need eight pieces of information to get started with our simple mortgage calculator:

1. Home price. Enter the purchase price for a home or test different prices to see how they affect the monthly mortgage payment.
2. Loan term. Your loan term is the number of years it takes to pay off your mortgage. Choose a 30-year fixed-rate term for the lowest payment, or a 15-year term to save money on interest.
3. Down payment. A down payment is upfront money you pay to buy a home — most loans require at least a 3% to 3.5% down payment. However, if you put down less than 20% when taking out a conventional loan, you’ll have to pay private mortgage insurance (PMI). Our calculator will automatically estimate your PMI amount based on your down payment. But if you aren’t using a conventional loan, you can uncheck the box next to “Include PMI” in the advanced options.
4. Start date. This is the date you’ll start making payments. The home loan calculator defaults to today’s date unless you enter a different one.
5. Home insurance. Lenders require you to get home insurance to repair or replace your home from a fire, theft or other loss. Our mortgage calculator automatically generates an estimated cost based on your home price, but actual rates may vary.
6. Mortgage rate. Check today’s mortgage rates for the most accurate interest rate. Otherwise, the payment calculator will supply a common interest rate.
7. Property taxes. Our mortgage calculator assumes a property tax rate equal to 1.25% of your home’s value, but actual property tax rates vary by location. Contact your local county assessor’s office to get the exact figure if you’d like to calculate a more precise monthly payment estimate.
8. HOA fees. If you’re buying in a neighborhood governed by a homeowners association (HOA), you can add the monthly fee amount.

How to use a mortgage payment formula to estimate your monthly payment

If you’re an old-school math whiz and prefer to do the math yourself using a mortgage payment formula, here’s the equation embedded in the mortgage calculator that you can use to calculate your home loan payments:

Average current mortgage interest rates

Current average rates are calculated using all conditional loan offers presented to consumers nationwide by LendingTree’s network partners over the past seven days for each combination of loan program, loan term and loan amount. Rates and other loan terms are subject to lender approval and not guaranteed. Not all consumers may qualify. See LendingTree’s Terms of Use for more details.

On this page

• What is a mortgage?
• What’s included in your home loan payment
• How this calculator can guide your mortgage decisions
• How much house can I afford?
• How to lower your estimated mortgage payment
• Next steps: Start the home loan process

The mortgage calculator estimates a payment that includes principal, interest, taxes and insurance payment — also known as a PITI payment. These four key components help you estimate the total cost of homeownership.

Breakdown of PITI:

• Principal: How much you pay each month toward your loan balance.
• Interest: How much you pay in interest charges each month, which are the costs associated with borrowing money.
• Property taxes: Our home loan calculator divides your annual property tax bill by 12 to get the monthly tax amount.
• Homeowners insurance: Your annual home insurance premium is divided by 12 to find the monthly amount that is added to your payment.

What is the average mortgage payment on a $300,000 house?

The monthly mortgage payment on a $300,000 house would likely be around $1,980 at current market rates. That estimate assumes a 6.9% interest rate and at least a 20% down payment, but your monthly payment will vary depending on your exact interest rate and down payment amount.

There are a lot of important money choices to make when you buy a home. A mortgage calculator can help you decide if you should:

• Pay extra to avoid or lower your monthly mortgage insurance premium. PMI premiums depend on your loan-to-value (LTV) ratio, which is how much of your home’s value you borrow. A lower LTV ratio equals a lower insurance premium, and you can skip PMI with at least a 20% down payment.
• Choose a shorter term to build equity faster. If you can pay higher monthly payments, your home equity — the difference between your loan balance and home value — will grow faster. The amortization schedule will show you what your loan balance is at any point during your loan term.
• Skip a neighborhood with pricey HOA fees. Those HOA benefits may not be worth it if they strain your budget.
• Make a larger down payment to get a lower monthly payment. The more you put down, the less you’ll pay each month. A calculator can also show you how big a difference getting over the 20% threshold makes for borrowers taking out conventional loans.
• Rethink your housing needs if the payment is higher than expected. Do you really need four bedrooms, or could you work with just three? Is there a neighborhood with lower property taxes nearby? Could you commute an extra 15 minutes in commuter traffic to save $150 on your monthly mortgage payment?

How lenders decide how much you can afford

Lenders use your debt-to-income (DTI) ratio to decide how much they are willing to lend you. DTI is calculated by dividing your total monthly debt — including your new mortgage payment — by your pretax income.

Most lenders are required to max DTI ratios at 43%, not including government-backed loan programs. But if you know you can afford it and want a higher debt load, some loan programs — known as nonqualifying or “non-QM” loans — allow higher DTI ratios.

Example: How DTI ratio is calculated

Your total monthly debt is $650 and your pretax income is $5,000 per month. You’re considering a mortgage with a $1,500 monthly payment.
→ Your DTI ratio is 43%because ($1500 + $650) ÷ $5,000 = 43%.

How you can decide how much you can afford

To decide if you can afford a house payment, you should analyze your budget. Before committing to a mortgage loan, sit down with a year’s worth of bank statements and get a feel for how much you spend each month. This way, you can decide how large a mortgage payment has to be before it gets too hard to manage.

There are a few rules of thumb you can go by:

• Spend no more than 28% of your income on housing. Your housing expenses — including mortgage, taxes and insurance — shouldn’t exceed 28% of your gross income. If they do, you may want to consider scaling back how much you want to take on.
• Spend no more than 36% of your income on debt. Your total monthly debt load, including mortgage payments and other debt you’re repaying (like car loans, personal loans or credit cards), shouldn’t exceed 36% of your income.

Why shouldn’t I use the full mortgage loan amount my lender is willing to approve?

1. Lenders don’t consider all your expenses. A mortgage loan application doesn’t require information about car insurance, sports fees, entertainment costs, groceries and other expenses in your lifestyle. You should consider if your new mortgage payment would leave you without a cash cushion.
2. Your take-home pay is less than the income lenders use to qualify you. Lenders may look at your before-tax income for a mortgage, but you live off what you take home after your paycheck deductions. Make sure you leftover cash after you subtract the new mortgage payment.

How much money do I need to make to qualify for a $400,000 mortgage?

The answer depends on several factors including your interest rate, your down payment amount and how much of your income you’re comfortable putting toward your housing costs each month. Assuming an interest rate of 6.9% and a down payment under 20%, you’d need to earn a minimum of $150,000 a year to qualify for a $400,000 mortgage. That’s because most lenders’ minimum mortgage requirements don’t usually allow you to take on a mortgage payment that would amount to more than 28% of your monthly income. The monthly payments on that loan would be about $3,250.

Is $2,000 a month too much for a mortgage?

A $2,000 per month mortgage payment is too much for borrowers earning under $92,400 a year, according to typical financial advice. How do we know? A conservative or comfortable DTI ratio is usually considered to be anywhere from 1% to 26%, if you only include mortgage debt. A $2,000 per month mortgage payment represents a 26% DTI if you earn $92,400 per year.

Try one or all of the following tips to reduce your monthly home loan payment:

Choose the longest term possible. A 30-year fixed-rate loan will give you the lowest monthly payment compared to shorter-term loans.

Make a bigger down payment. Your principal and interest payments as well as your interest rate will typically drop with a smaller loan amount, and you’ll reduce your PMI premium. Plus, with a 20% down payment, you’ll eliminate the need for PMI altogether.

Consider an adjustable-rate mortgage (ARM). If you only plan to live in your home for a few years, ask your lender about an ARM loan. The initial rate is typically lower than fixed rates for a set time period; once the teaser rate period ends, though, the rate will adjust and is likely to increase.

Shop for the best rate possible. LendingTree data show that comparing mortgage quotes from three to five lenders can save you big on your monthly payments and interest charges over your loan term.

1. Explore mortgage types and requirements.
2. Get a mortgage prequalification.
3. Get a preapproval letter.
4. Shop for the right mortgage lender.