Buying a home is the biggest purchase most people ever make, so it's worth knowing your real budget before you fall in love with a listing. Our mortgage calculator turns a price, down payment and rate into a monthly payment in seconds.
Start with the monthly payment, not the price
Lenders often talk in loan amounts, but your life happens month to month. Decide what monthly payment feels comfortable, then work backwards. A common guideline is to keep housing costs under about a third of your take-home pay.
The four numbers that decide your payment
- Home price — the sticker price of the property.
- Down payment — a bigger deposit shrinks the loan and the interest.
- Interest rate — even 1% changes the payment noticeably.
- Term — 30 years lowers the monthly cost but raises total interest.
Don't forget the extras
Our calculator estimates principal and interest. Property tax, insurance and maintenance are on top, so leave room in your budget. If you're also weighing a car or personal loan, the loan calculator works the same way.
Saving the down payment
A larger down payment is the single easiest way to cut your monthly cost. Set a target and a timeline with our savings goal calculator, and see how it could grow with compound interest.