Free Mortgage Calculator
Estimate your monthly home loan payment in real time — principal, interest, taxes, insurance, HOA and PMI — with a full amortization schedule you can export.
= $80,000 (20.0%) down
= $4,800 / yr
Only applied when down payment is under 20%.
Optional: estimate your Debt-to-Income (DTI) ratio
Lenders use DTI to decide how much you can borrow. Enter your gross monthly income to see your ratios.
Car loans, student loans, credit cards, etc.
Estimated Monthly Payment
$2,625.51 including taxes, insurance
Strengthen your mortgage application
Lenders want clear proof of income. Generate clean, professional paystubs and income documents in minutes to support your home loan application.
This calculator provides estimates for informational purposes only and does not constitute a loan offer or financial advice. Actual rates, taxes, insurance and PMI vary by lender and location. Consult a licensed mortgage professional before making decisions.
How the Mortgage Calculator Works
This calculator estimates your monthly mortgage payment using the standard amortizing loan formula. The principal and interest portion is calculated as M = P [ r (1 + r)n ] / [ (1 + r)n − 1 ], where M is your monthly principal-and-interest payment, P is the loan amount (home price minus down payment), r is your monthly interest rate (the annual rate divided by 12), and n is the total number of monthly payments (loan term in years multiplied by 12).
On top of principal and interest, your true monthly cost usually includes property taxes, homeowners insurance, HOA dues, and — if your down payment is under 20% — private mortgage insurance (PMI). Together these make up what lenders call PITI. This tool adds all of them so the headline number reflects what you will actually pay each month.
Factors That Affect Your Mortgage Rate
Your interest rate is one of the biggest drivers of your monthly payment and total cost. Lenders set your rate based on several factors: your credit score (higher scores earn lower rates), your down payment (more money down reduces lender risk), the loan term (shorter terms usually carry lower rates), the loan type (conventional, FHA, VA, or jumbo), your debt-to-income ratio, and broader market conditions tied to the wider economy. Even a half-point difference in rate can change your total interest by tens of thousands of dollars over a 30-year loan.
How to Improve Your Mortgage Approval Chances
Beyond your credit score, lenders want to see stable, well-documented income. Before you apply, it helps to pay down existing debts to lower your DTI, avoid opening new credit lines, save for a larger down payment, and gather clean proof of income. Self-employed buyers and gig workers in particular are often asked for extra documentation, since they do not receive traditional employer paystubs.
Prepare your income documentation
A strong application is backed by clear records of the income you have earned. Our tools help you produce professional, correctly formatted paystubs and income verification documents to accompany your mortgage application.
Debt-to-Income (DTI) Ratio Explained
Your debt-to-income ratio is the share of your gross monthly income that goes toward debt payments, and it is one of the first things a lender checks. There are two versions: the front-end ratio looks only at your housing payment (PITI) as a percentage of income, while the back-end ratio adds all your other monthly debts such as car loans, student loans, and credit cards. Many lenders look for a front-end ratio at or below 28% and a back-end ratio at or below 43%, though some loan programs allow higher. Enter your income in the calculator above to see both ratios instantly.
Common Mistakes to Avoid When Calculating Affordability
The most common mistake is budgeting for principal and interest alone and forgetting taxes, insurance, PMI, and HOA — these can add hundreds of dollars to your monthly payment. Buyers also frequently overlook closing costs (typically 2% to 5% of the loan amount), ongoing maintenance and repairs, and the impact of a higher rate if their credit slips before closing. Finally, stretching to the maximum a lender will approve can leave little room for emergencies. A conservative estimate that includes every recurring cost gives you a far more realistic picture of what you can comfortably afford.
Frequently Asked Questions
How accurate is this mortgage calculator?+
The calculator uses the standard amortizing loan formula, so the principal and interest portion of your payment is mathematically precise for the loan amount, rate, and term you enter. Property tax, homeowners insurance, HOA, and PMI are estimates based on the figures you provide. Actual escrow amounts are set by your lender, county, and insurer, so treat the total as a close estimate rather than a guaranteed quote.
What is included in the monthly payment?+
The total monthly payment (often called PITI) includes Principal, Interest, property Taxes, and homeowners Insurance. This calculator also adds HOA dues and PMI when applicable. Principal and interest go to your lender to repay the loan; taxes and insurance are typically collected into an escrow account and paid on your behalf.
What credit score do I need to qualify for a mortgage?+
Most conventional loans require a minimum credit score around 620, though the best interest rates typically go to borrowers with scores of 740 or higher. FHA loans can allow scores as low as 580 (or 500 with a larger down payment). Requirements vary by lender and loan program, so check with individual lenders for their exact thresholds.
Do lenders accept self-generated paystubs as proof of income?+
Lenders require documentation that accurately reflects your real earnings. A paystub generator is useful for creating clean, correctly formatted records of income you have genuinely earned — for example, if you are self-employed or your employer does not provide formal paystubs. The information on any income document you submit must be truthful and verifiable; submitting fabricated income figures on a loan application is fraud.
How does making extra payments affect my amortization?+
Extra payments applied to principal reduce your outstanding balance faster, which lowers the interest charged on every future payment. Even a modest additional amount each month can shorten a 30-year loan by several years and save tens of thousands of dollars in total interest. Use the amortization schedule to see how your balance declines over time.
What is PMI and when do I have to pay it?+
Private Mortgage Insurance (PMI) protects the lender if you stop making payments, and it is generally required on conventional loans when your down payment is less than 20% of the home price. It is added to your monthly payment and typically ranges from about 0.3% to 1.5% of the loan amount per year. Once you reach roughly 20% equity, you can usually request to have PMI removed.
Should I choose a 15-year or 30-year mortgage?+
A 15-year mortgage has higher monthly payments but a lower interest rate and dramatically less total interest paid over the life of the loan. A 30-year mortgage keeps monthly payments lower and more affordable but costs significantly more in interest overall. Enter both terms in the calculator to compare the monthly payment and total interest for your situation.
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