Estimate your monthly mortgage payment including tax, insurance and PMI. Free home loan calculator.
Includes property tax, insurance & PMI
A mortgage calculator gives you a realistic picture of your monthly home loan payment, including principal, interest, property taxes, home insurance, and PMI if your down payment is less than 20%. Understanding your true monthly cost before you buy prevents financial stress down the line.
The 28% rule states your mortgage payment should not exceed 28% of your gross monthly income. A 20% down payment eliminates PMI and saves thousands. Even one extra mortgage payment per year can shave years off your loan.
With mortgage rates still hovering above 7%, affordability has become the defining question for homebuyers in 2026. The old "buy as much house as the bank approves you for" advice is exactly how people end up house-poor.
Most financial planners recommend the 28/36 rule: your mortgage payment shouldn't exceed 28% of your gross monthly income, and all debt payments combined (including the mortgage) shouldn't exceed 36%. If you earn $7,000/month, that caps your mortgage payment around $1,960 and total debt around $2,520.
Remember that your "true" monthly housing cost isn't just principal and interest — property tax, homeowners insurance, and PMI (if your down payment is under 20%) can add hundreds of dollars on top. A $400,000 home doesn't cost what the mortgage calculator on the listing shows; it costs that plus tax, insurance, HOA fees, and maintenance (budget 1% of home value per year).
A bigger down payment does more than lower your monthly payment — it eliminates PMI, reduces your interest rate slightly, and protects you if home values dip. Use the calculator above to test different price points and down payments until you find a number that still leaves room to save and live comfortably.