US Mortgage Calculator
Estimate your monthly US mortgage payment including principal, interest, property tax, insurance and HOA.
A US mortgage calculator shows what you will actually pay each month. Your payment is not just principal and interest — most US buyers also pay property tax and home insurance into an escrow account, and some pay HOA fees on top.
How to use the calculator
- Enter the home price and your down payment percentage.
- Add the interest rate and the loan term — 30 and 15 years are standard in the US.
- Set the local property tax rate and annual home insurance premium.
- Add any monthly HOA fees to see your true monthly cost.
How it is calculated
Monthly tax = Price × tax rate ÷ 12 · Monthly insurance = annual premium ÷ 12
Where r = annual rate ÷ 12 ÷ 100 and n = term in months.
Worked example
$400,000 home, 20% down, 6.5% for 30 years
Loan = $320,000, principal & interest ≈ $2,023 a month
With 1.1% property tax and $1,500 insurance, the total is about $2,514 a month.
Who should use this calculator
- US buyers comparing mortgage offers and wanting the full monthly cost rather than just principal and interest.
- Anyone deciding between a 15-year and a 30-year term and seeing what the shorter term saves.
- First-time buyers checking how much house a given monthly payment can support.
- Homeowners working out how much of a payment is escrow rather than loan repayment.
Common mistakes to avoid
- Budgeting only for principal and interest. Most US mortgages collect property tax and insurance monthly into escrow, and HOA fees may be added. The real payment is often 20–25% higher than the loan payment alone.
- Forgetting private mortgage insurance. Put down less than 20% and PMI is typically added until you reach 20% equity, which can cost 0.3–1.5% of the loan amount a year.
- Underestimating closing costs. Origination, appraisal, title, and recording fees usually come to 2–5% of the purchase price on top of the down payment.
- Assuming a fixed rate on an adjustable mortgage. An ARM has a lower initial rate for a set period, after which the rate adjusts with the market. Model the adjusted rate, not just the teaser.
- Ignoring maintenance and utilities. Owning a home means repairs, insurance deductibles and utility bills that renting often hides.
What PITI actually costs
On a $400,000 home with 20% down, a 6.5% thirty-year mortgage gives a loan of $320,000 and a principal and interest payment of about $2,023 a month. Add property tax at 1.1% — roughly $367 a month — and $1,500 a year of insurance, about $125 a month, and the true payment is close to $2,514.
That gap is what surprises first-time buyers. Lenders collect the tax and insurance monthly into an escrow account and pay them on your behalf, which is why the payment on the statement is larger than the loan figure you were quoted. On a 15-year loan the principal and interest would be higher still, but the total interest over the life of the loan is dramatically lower.
US mortgage terms explained
- PITI
- Principal, interest, taxes and insurance — the four parts of a standard US mortgage payment.
- Escrow
- An account holding part of your monthly payment so the lender can pay property tax and insurance when due.
- PMI
- Private mortgage insurance, usually required when the down payment is below 20%.
- LTV
- Loan to value — the loan amount as a percentage of the property value.
- ARM
- Adjustable-rate mortgage, where the rate is fixed for an initial period and then adjusts.
Frequently asked questions
What is included in a US mortgage payment?
A typical payment has four parts: principal, interest, taxes and insurance (often called PITI). HOA fees are extra. Lenders collect tax and insurance monthly into an escrow account and pay them on your behalf.
How much down payment do I need in the US?
Conventional loans often accept 5–20% down. Putting down less than 20% usually means paying private mortgage insurance (PMI), which adds roughly 0.3–1.5% of the loan amount per year until you reach 20% equity.
Is a 15-year or 30-year mortgage better?
A 15-year loan has a higher monthly payment but a lower rate and far less total interest. A 30-year keeps payments low and frees cash flow. Run both terms here to see the trade-off in numbers.