Estimate a realistic monthly home payment, including the loan, property tax, and insurance.
Who this is for
Home buyers trying to estimate a realistic monthly payment.
What to type in
Home price, down payment, loan term, interest rate, property tax, and insurance.
Start with the assumptions, then use the interpretation below to compare tradeoffs without bouncing between sections.
Start with the home price and down payment, then add the loan details and yearly home costs.
Percentage of home price paid upfront as equity.
Fixed annual note rate before fees.
Heavy payment
On a $400.0K home with 20% down, you would bring about $80.0K up front and pay about $2,522.62 each month including tax and insurance.
Upfront cash needed
$80.0K
This is your down payment before closing costs.
Lifetime interest
$408.1K
About 102% of the home price again in interest.
What is inside the monthly payment?
$2,022.62 goes to principal and interest, plus $400.00 for taxes and $100.00 for insurance.
Why does it feel slow at the start?
In the first 5 years, you pay about $100.9K in interest but only reduce the loan by about $20.4K.
What is the big tradeoff?
This payment could work, but it is large enough that taxes, insurance, and interest deserve a second look before you commit.
You need $80.0K down up front and will borrow $320.0K.
At 6.5% for 30 years, about $2,022.62 of the monthly payment comes from the loan itself.
Lifetime interest is very high relative to the home price. A shorter term, lower rate, or larger down payment is worth testing.
Loan amount
$320.0K
Monthly payment
$2,522.62
Total interest
$408.1K
Total cost
$988.1K
Use this view to see what you are really paying each month and how slowly equity builds in the early years.
What your monthly payment is made of
$2,523 total
Loan payment
$2,023 per month
Property tax
$400 per month
Insurance
$100 per month
What happens in the first 5 years
Why mortgages feel slow at the start
Interest paid
$100.9K
This is the part of your payment that does not build ownership.
Principal paid down
$20.4K
This is how much equity you build from payments in the first 5 years.
Balance after each year
First 10 years
1
$316.4K
2
$312.6K
3
$308.5K
4
$304.2K
5
$299.6K
6
$294.6K
7
$289.3K
8
$283.7K
9
$277.7K
10
$271.3K
Clarity helps connect mortgage affordability to down-payment savings, current debt, and the rest of your balance sheet before you commit.
Use this if you want to understand how the calculator works, not just plug in numbers.
Step 1
Provide home price, down payment percentage, loan term, and interest rate.
Step 2
Include annual property tax and insurance estimates.
Step 3
Review monthly PITI, total interest, and yearly amortization summary.
These cover the assumptions, tradeoffs, and edge cases behind the calculator.
Use the calculator for the math, then use these guides to make the decision with more confidence.