Why is my monthly payment higher than the mortgage payment I saw on a listing site?

Many listing sites only show principal and interest. This calculator adds the other costs you really pay each month: Property tax Homeowner's insurance PMI, if you put down less than 20% HOA fees That full number is what your lender checks, so plan around it.

How does the calculator know when PMI stops?

The tool charges PMI each month while your loan balance is above 80% of the original home price. Once the balance drops to that level, PMI stops in the math. That is why the total PMI in the lifetime cost box is often much smaller than the monthly PMI times the full loan term.

What is the difference between total cost of loan and total cost of home?

They count different things: Total cost of loan = loan amount + all interest. Total cost of home = down payment + loan cost + taxes + insurance + PMI + HOA. The lifetime cost box goes one step further and adds maintenance at 1% of the home value per year.

Why does the Affordability tab show two different max prices?

Lenders use two limits. The front-end limit caps housing at 28% of your gross income. The back-end limit caps housing plus all other debt at 36%. The calculator uses the smaller of the two as your max price and tells you which one is holding you back.

My max price went up when I lowered my car payment. Why?

Other debt eats into the 36% back-end limit. Every dollar of car, card, or student loan payment is one less dollar you can spend on housing. Paying off a small loan can raise your buying power by tens of thousands of dollars.

Should I use the conservative, moderate, or aggressive number?

Pick based on your comfort with risk: Conservative (25%/33%) — best if your income changes, you have kids, or you want to save fast. Moderate (28%/36%) — the standard lender rule. Aggressive (31%/43%) — the stretch most lenders will still approve, but your budget will be tight.

Where does the Affordability tab get property tax and insurance from?

It borrows the property tax rate, insurance, HOA, and PMI rate you typed on the Mortgage Payment tab. If you change those there, your max price here updates too.

How do I aim a one-time extra payment at a certain month?

On the Amortization tab, switch Table View to Monthly. Then click the + button on any row. That sets the payment number for your one-time extra payment. Enter the dollar amount and the schedule redraws.

Which saves more: extra money each month or one big payment?

Small extra payments made early usually win, because they cut interest for every month that follows. A lump sum helps most in the first few years of the loan. Try both in the tool and compare the Interest Saved box.

Why does my amortization payoff date change when I add extra payments?

Extra money goes straight to principal. A smaller balance means less interest next month, so more of your normal payment also goes to principal. The loan snowballs shut faster, and the payoff date moves closer.

What does the dashed line on the amortization chart mean?

That is your balance without any extra payments. The solid line is your balance with them. The gap between the two lines shows how much faster you are paying the loan down.

How much cash do I need on closing day?

Look at the Total Cash Needed at Closing box. It adds your down payment and your closing costs, minus any seller concessions. Closing costs alone usually run 2% to 5% of the price.

Why did my fees change when I picked a different state?

Transfer tax, attorney fees, and recording fees vary a lot by state. Choosing a state loads typical numbers for that place. You can still type over any of them with real quotes from your lender or title company.

Are discount points worth buying?

Each point costs 1% of your loan and lowers the rate by about 0.25% in this tool. Points pay off only if you keep the loan long enough for the lower payment to beat the upfront cost. If you may move or refinance in a few years, skip them.

What are seller concessions and how do I use that box?

Seller concessions are dollars the seller agrees to pay toward your closing costs. Type the agreed amount in that box and the calculator subtracts it from your total, lowering the cash you bring to closing.

Why does the Rent vs. Buy tab say renting wins?

It usually means one of these: Your stay is short, so closing and selling costs are not spread out. Rent is low compared to the home price. Your investment return is set higher than home appreciation. Move the Years slider up and watch when buying takes the lead.

How does the Rent vs. Buy tab count investing?

If you rent, your down payment and closing cash go into investments. Any month renting is cheaper than owning, that savings is invested too. The tool grows that money at the return you set and subtracts it from your rent cost.

Does the tool count the mortgage interest tax break?

Yes. Each year it multiplies your mortgage interest plus property tax by your marginal tax rate and subtracts that from the cost of buying. Only itemizers get this break in real life, so set the tax rate to 0 if you take the standard deduction.

Why does the break-even year move when I change the selling cost?

Selling costs come out of your equity when you leave. Higher agent fees mean less money back, so buying takes longer to beat renting. Lower them and break-even arrives sooner.

What does cost per square foot tell me?

It shows the price divided by the home size, so you can compare homes of different sizes. Enter your local market price per area and the tool tells you if the home is priced above or below what nearby homes cost.

Does the calculator use a fixed or adjustable rate?

It assumes a fixed rate for the whole term. Your payment for principal and interest never changes. Taxes, insurance, and HOA can still rise in real life, so treat the monthly total as today's estimate.

How do I compare a 15-year and a 30-year loan?

Use the Scenario Comparison box on the Mortgage Payment tab. Set Scenario B to 15 years with your quoted rate. The table shows both monthly payments, total interest, and the difference side by side.

Do the tabs share my numbers?

Yes. The Mortgage Payment tab feeds the others. If you edit the Amortization or Closing Costs tab, that tab stops auto-updating. Click Use Mortgage Tab Values to link it back up.

Why is my down payment percent showing PMI at 19.9%?

PMI applies any time you put down less than 20%. Even 19.9% triggers it. Adding a little more cash to reach a full 20% removes PMI and cuts your monthly payment.

Is this calculator a loan approval?

No. It gives estimates for planning only. Real rates, taxes, insurance, and fees come from your lender, your county, and your insurer. Get a written quote before you make an offer.

Home Buying Calculator - PITI, DTI, Amortization, Rent/Buy

Introduction

Buying a home is a big money choice. This home buying calculator helps you see the real numbers before you sign anything. Put in a home price, a down payment, and an interest rate. You will get your monthly mortgage payment right away.

The tool has five parts:

Mortgage Payment — See your full monthly cost: loan payment, property tax, insurance, PMI, and HOA fees. For a focused view of just the loan, try the Mortgage Calculator or the PITI Calculator.
Affordability — Find out how much house you can buy based on your income and debts, much like our Home Affordability Calculator.
Amortization — See how each payment splits between interest and principal. Add extra payments and watch how much interest you save with the Mortgage Extra Payment Calculator.
Closing Costs — Add up the cash you need on closing day, by state. See also the Closing Cost Calculator.
Rent vs. Buy — Compare renting and buying to find the year buying starts to win, the same way our Rent vs Buy Calculator does.

Every tab shows charts, tables, and step-by-step math, so you can see how the answer was found. Change any number and the results update at once. Use it to set a budget, compare loan terms, or check if a home is priced fairly for your area.

How to use our Home Buying Calculator

Enter your home price, down payment, loan term, interest rate, and other housing costs, and the calculator shows your monthly mortgage payment, how much home you can afford, a full payoff schedule, your closing costs, and whether renting or buying costs less.

Mortgage Payment tab

Home Price: Type the price of the home you want to buy, or drag the slider.

Down Payment (amount): Enter the cash you will pay up front in dollars. The percent box updates on its own. Not sure how much to save? Use the Down Payment Calculator.

Down Payment (%): Or enter the percent instead, and the dollar amount updates. Under 20% adds PMI.

Loan Term: Pick how many years you will pay the loan: 10, 15, 20, 25, or 30. Compare a 15 Year Mortgage Calculator against a 30 Year Mortgage Calculator to see the trade-off.

Annual Interest Rate: Enter the rate your lender quoted you, as a percent. The Mortgage Rate Calculator shows how small rate moves change your payment.

Property Tax Rate: Enter your yearly property tax as a percent of the home value. Our Property Tax Calculator helps you estimate this.

Homeowner's Insurance: Enter what you pay for home insurance each year. The Homeowners Insurance Calculator gives a quick estimate.

HOA Fees: Enter your monthly homeowners association fee. Use 0 if you have none.

PMI Rate: Enter the yearly PMI rate as a percent of the loan. This box only matters if you put down less than 20%. See the PMI Calculator for when PMI drops off.

Home Size: Enter the size of the home and pick ft², m², or acres. This gives you cost per area. The Square Footage Calculator can help if you only have room dimensions.

Local Market Price per Area: Enter the going price per ft² or m² in your area to see if the home is priced above or below the market.

Scenario B Loan Term, Down Payment, and Rate: Enter a second set of terms to compare side by side with your main loan.

Affordability tab

Annual Gross Household Income: Enter all income before taxes for everyone buying the home. If you only know your hourly wage, the Hourly to Salary Calculator converts it fast.

Monthly Car Payment(s): Enter what you pay each month for all car loans or leases. Check the figure with our Auto Loan Calculator.

Monthly Student Loans: Enter your total monthly student loan payment, which you can confirm with the Student Loan Calculator.

Monthly Credit Card Minimums: Enter the smallest payment your cards ask for each month. The Minimum Payment Calculator shows what that really costs you.

Other Monthly Debt: Enter any other loan or debt payments, like personal loans or child support. Use the Debt Payoff Calculator if you want to clear these first.

Monthly Living Expenses: Enter food, utilities, childcare, and savings. This is not debt, but it shapes your budget chart. A Monthly Budget Calculator makes this easier to pin down.

Down Payment Available: Enter the cash you have saved for the down payment.

Estimated Interest Rate: Enter the rate you expect to get on your loan.

Loan Term: Choose the length of the loan you plan to take.

Home Price You're Considering: Enter a target price to see your debt-to-income score for that home. For a deeper look, open the DTI Calculator.

Amortization tab

Home Price: Enter the price, or click "Use Mortgage Tab Values" to copy it over.

Down Payment: Enter your down payment in dollars.

Interest Rate: Enter your loan rate as a percent.

Loan Term: Pick the number of years for the loan.

Extra Monthly Payment: Enter any extra dollars you will add to every payment. The Mortgage Payoff Calculator shows the new payoff date.

Annual Extra Payment: Enter a lump sum you will pay once a year, like a tax refund. Paying every two weeks works too — see the Biweekly Mortgage Calculator.

One-Time Extra Payment: Enter a single lump sum you plan to pay.

Applied at Payment #: Enter which payment number gets that lump sum. Payment 60 is the end of year 5.

Table View: Choose year-by-year for a short table or monthly for every payment. Our Mortgage Amortization Calculator prints a full schedule as well.

Closing Costs tab

Home Price: Enter the purchase price of the home.

Down Payment: Enter your down payment as a percent. The loan amount fills in for you. Your loan-to-value ratio comes from these two numbers — see the LTV Calculator.

State: Pick your state to load typical transfer tax, attorney, and recording fees. Canadian and UK buyers can use the Land Transfer Tax Calculator or Stamp Duty Calculator.

First-Time Homebuyer: Choose Yes or No to see first-time buyer help in your results.

Discount Points Purchased: Enter how many points you will buy. Each point costs 1% of the loan and cuts the rate about 0.25%. Points also change your APR.

FHA Loan: Choose Yes to add the 1.75% upfront FHA mortgage insurance fee. See the FHA Loan Calculator, or the VA Loan Calculator if you qualify for a zero-down VA loan.

Seller Concessions: Enter dollars the seller agreed to pay toward your closing costs.

Origination Fee: Enter the lender's fee as a percent of the loan.

Application Fee: Enter what the lender charges to apply.

Underwriting Fee: Enter the fee to review and approve your loan.

Appraisal Fee: Enter the cost to have the home valued.

Home Inspection: Enter the cost of your home inspection.

Title Search & Insurance: Enter this cost as a percent of the home price.

Survey Fee: Enter the cost to map the property lines.

Attorney Fee: Enter your lawyer's fee. Some states need one, some do not.

Property Tax Escrow: Enter how many months of taxes the lender collects up front.

Prepaid Interest: Enter the days of interest owed from closing to your first payment. The Daily Interest Calculator shows how this per-day charge works.

Recording Fees: Enter what the county charges to record the deed.

Transfer Tax: Enter the tax on the sale as a percent of the price.

Rent vs. Buy tab

Annual Home Appreciation: Enter how much you think the home's value will grow each year.

Annual Maintenance: Enter yearly repair and upkeep costs as a percent of home value. 1% is common.

Selling Costs When You Leave: Enter agent fees and other sale costs as a percent of the sale price. The Home Sale Calculator breaks these out line by line.

Current Monthly Rent: Enter what you pay, or would pay, to rent instead. The Rent Affordability Calculator helps if you are still comparing rentals.

Annual Rent Increase: Enter how fast you expect rent to rise each year.

Renter's Insurance: Enter your monthly renter's insurance cost.

Security Deposit: Enter the deposit a landlord would hold.

Annual Investment Return: Enter the yearly return you would earn by investing your down payment instead. Model that growth with the Investment Calculator or the Compound Interest Calculator.

Marginal Tax Rate: Enter your top income tax rate to count mortgage interest and tax write-offs. Find your bracket with the Tax Bracket Calculator.

Years You Plan to Stay: Drag the slider to how long you will live in the home.

Buying a Home: What the Numbers Mean

Buying a home is the biggest purchase most people ever make. The price on the listing is only part of the story. Your real cost each month comes from your loan payment, taxes, insurance, and other fees. Knowing these parts before you shop helps you pick a price you can truly afford.

Your Monthly Mortgage Payment (PITI)

Lenders group your monthly housing cost into four parts, called PITI:

Principal – the part that pays down what you borrowed.
Interest – what the bank charges you to borrow. See how it adds up with the Mortgage Interest Calculator.
Taxes – yearly property tax, split into 12 monthly parts.
Insurance – homeowner's insurance that covers damage.

Two more costs can be added: HOA fees if your home is in a managed community, and PMI (private mortgage insurance) if your down payment is under 20% of the price. PMI protects the lender, not you, and it usually drops off once you owe 80% or less of the home's original price.

Down Payment and Loan Term

The down payment is the cash you pay up front. A bigger down payment means a smaller loan, a lower payment, and no PMI at 20% or more. The loan term is how many years you have to pay. A 30-year loan has a lower monthly payment but costs much more interest overall. A 15-year loan costs more each month but saves a large amount of interest. Our general Loan Calculator and Loan Payment Calculator let you test any term.

How Much House You Can Afford

Lenders use two simple rules based on your gross (before tax) income:

28% front-end rule – housing should take no more than 28% of your monthly income.
36% back-end rule – housing plus all other debt (car loans, student loans, credit cards) should stay under 36%.

These percents are called your debt-to-income ratio (DTI). Many lenders will stretch to 43%, but a lower DTI means more room in your budget for savings, repairs, and surprises. Lowering card balances first — with the Debt Snowball Calculator or Debt Avalanche Calculator — can raise how much home you qualify for.

Amortization and Extra Payments

Amortization is the schedule that shows how each payment splits between interest and principal. Early on, most of your money goes to interest. Later, more goes to principal. Paying a little extra each month goes straight to principal, which shortens the loan and can save tens of thousands of dollars in interest. The Amortization Calculator and Early Mortgage Payoff Calculator show the effect year by year.

Closing Costs

Closing costs are one-time fees you pay when the sale is final. They usually run about 2% to 5% of the home price and include lender fees, appraisal, home inspection, title insurance, transfer taxes, and prepaid taxes and insurance. You need this cash on top of your down payment, so plan for both. Sellers can sometimes agree to pay part of it, called a seller concession. Don't forget the Moving Cost Calculator for what comes after closing day, and keep an emergency fund intact.

Renting vs. Buying

Renting is cheaper in the short run because you skip the down payment and closing costs. Buying builds equity, which is the part of the home you own — track it later with the Home Equity Calculator. There is usually a break-even point—often around five to seven years—when owning becomes the cheaper choice. If you plan to move before then, renting and investing your savings may leave you better off. If you are buying to rent out, run the numbers through the Rental Property Calculator or the Cap Rate Calculator.

Costs Many Buyers Forget

Maintenance and repairs: plan on about 1% of the home's value each year.
Utilities: often higher than in an apartment. Estimate power bills with the Electricity Cost Calculator.
Rising taxes and insurance: these grow over time, so your payment can climb even with a fixed-rate loan. The Inflation Calculator shows how fast costs creep up.
Selling costs: about 6% of the sale price when you move on.

Rates and fees change often, so use quotes from real lenders when you get close to buying. Small changes in the interest rate can move your monthly payment by a lot, and later on a Refinance Calculator can tell you when a lower rate is worth the new closing costs.

Home Buying Calculator

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