US Mortgage Calculator
GlobalEstimate your full monthly mortgage payment — principal, interest, property tax and insurance (PITI) — then see how American mortgages actually work: the 30-year fixed, PMI, ARMs, the 28/36 DTI rule and closing costs.
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Mortgage Payment (PITI)
Your loan amount is the home price minus your down payment. Principal and interest use the standard amortization formula M = L × r × (1+r)ⁿ / ((1+r)ⁿ − 1), where L is the loan, r the monthly rate, and n the number of months. Monthly property tax and insurance are added on top. Example: a $400,000 home with 20% down at 6.5% over 30 years is about $2,023 principal and interest, or roughly $2,481 including $4,000 tax and $1,500 insurance a year.
Amortization Schedule
Each month's split between principal and interest (P&I only), and the falling balance. Early payments are mostly interest; later ones mostly principal.
| Month | Payment | Principal | Interest | Balance |
|---|
Estimate only. Principal & interest exclude PMI, HOA dues, and any escrow shortfalls; property taxes and insurance change over time. Ask a lender for a Loan Estimate for exact figures.
KEEP EXPLORING
US calculators
The rest of the toolkit for buying, refinancing, and paying off a home in the United States — all free and instant.
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FURTHER READING
US mortgage guides
Plain-English explainers for the decisions behind the numbers.
HOW IT WORKS
How mortgages work in the united states
Buying a home in the US runs on a handful of conventions that shape every number on your loan estimate: the dominance of the long fixed-rate mortgage, a monthly payment that bundles taxes and insurance, and mortgage insurance that kicks in below a 20% down payment. Understanding these before you shop means the figures a lender quotes will make sense.
The Formula We Use
M = L × r × (1 + r)n / ((1 + r)n − 1)
Where: M = Monthly payment | L = Loan amount | r = Monthly interest rate | n = Total months
The standard amortization formula — the same maths as an EMI. Property tax and insurance are added on top of this.
The 30-year fixed is the American default
Most US buyers choose a 30-year fixed-rate mortgage — a low, predictable payment that never changes for three decades, even if rates climb. The main alternative is the 15-year fixed: a higher monthly payment, but a lower rate and far less total interest. See the guide on 15-year vs 30-year mortgages.
PITI and escrow
The American monthly payment is usually described as PITI — Principal, Interest, Taxes and Insurance. Lenders typically collect the property-tax and homeowners-insurance portions into an escrow account, which is why your monthly payment is higher than principal and interest alone. Property taxes vary widely by state and county, so two identical loans can carry very different total payments.
PMI and the 20% down payment
If your down payment is under 20%, a conventional lender adds private mortgage insurance (PMI) until you build enough equity. You can request cancellation once your balance reaches 80% of the original value, and it is removed automatically at 78%. Our PMI guide covers how to avoid it and shed it fast.
Fixed vs adjustable (ARM)
Lenders also offer adjustable-rate mortgages (ARMs), which start with a lower fixed "teaser" rate for a set period — a 5/1 ARM is fixed for five years — then adjust with the market. An ARM can save money if you will move or refinance before it adjusts, but it carries the risk of a higher payment later. See fixed vs adjustable-rate mortgages.
Refinancing and paying off early
Because US rates move and most loans have no prepayment penalty, refinancing is worth it when the rate drop clears your closing costs within a reasonable break-even — the refinance calculator shows it. Paying extra toward principal or switching to biweekly payments can shave years off a 30-year loan; the biweekly payoff calculator puts a number on it.
How much can you borrow? DTI and the 28/36 rule
US lenders size your loan against your debt-to-income ratio. The classic 28/36 rule caps housing at 28% of gross income and total debt at 36%, though a conforming qualified mortgage generally allows a back-end DTI up to 43%. Estimate your own ceiling on the affordability calculator, and read how much house you can really afford for the costs a DTI ignores.
Closing costs and cash to close
Beyond the down payment, US buyers pay closing costs — commonly around 2% to 5% of the purchase price — covering the appraisal, title insurance, lender fees, and prepaid taxes and insurance. Ask any lender for a Loan Estimate early: it itemises these costs in a standard format, so you can compare offers on total cost rather than the headline rate.
QUESTIONS & ANSWERS
US mortgage FAQs
The 30-year fixed-rate mortgage is the American default because it keeps the monthly payment low and locks the rate for the life of the loan, so it never changes even if market rates rise. It is supported by a deep secondary market (Fannie Mae and Freddie Mac) that makes long fixed terms widely available. A 15-year fixed is the main alternative — a higher payment but far less total interest and usually a lower rate.
PITI stands for Principal, Interest, Taxes and Insurance — the four parts of a typical US monthly housing payment. Lenders usually collect the property tax and homeowners insurance portions into an escrow account and pay those bills on your behalf, so your monthly payment is higher than principal and interest alone. Budget for the full PITI, not just the loan payment.
On a conventional loan, private mortgage insurance (PMI) is required when your down payment is under 20% (loan-to-value above 80%). You can request cancellation once the balance reaches 80% of the original value and, by law, it is automatically removed at 78%, provided you are current. FHA and other government-backed loans have their own mortgage insurance rules that can differ.
Many lenders follow the 28/36 guideline — up to 28% of gross income on housing and 36% on total debt — while a conforming qualified mortgage generally allows a back-end DTI up to 43%, and some programs go higher with strong compensating factors. Use the affordability calculator to see what a given DTI implies for your loan size.
In India instead? See our India home loan & EMI hub.