House Payment Calculator
Wondering how much your house payment will be? This house payment calculator helps you estimate your monthly home loan payment based on the purchase price, down payment, interest rate, and loan term. Whether you're a first-time homebuyer or looking to refinance, understanding your monthly payment is essential for budgeting and financial planning. Enter your home details below to see a breakdown of your monthly payment, total amount paid, and total interest over the life of the loan.
How This Calculation Works
The house payment is calculated using the standard loan amortization formula. Your loan amount is the home purchase price minus your down payment. The monthly payment is determined by the loan principal, monthly interest rate (annual rate ÷ 12), and total number of monthly payments (years × 12). This calculator shows the principal and interest portion of your payment, but your true monthly housing cost — often called PITI — also includes property taxes, homeowner's insurance, and sometimes HOA dues and mortgage insurance.
Understanding PITI: The Full Monthly Housing Bill
Lenders qualify you based on your total housing payment, not just principal and interest. PITI stands for the four components most homeowners pay every month, usually bundled into a single mortgage servicer payment through an escrow account.
- Principal: The portion of your payment that reduces the loan balance.
- Interest: The lender's charge for borrowing the money, calculated on the remaining balance.
- Taxes: Local property taxes, collected monthly and paid by your servicer when the annual or semiannual bill is due.
- Insurance: Homeowner's insurance premiums, and mortgage insurance (PMI or MIP) if your down payment is below 20% on a conventional loan or you used an FHA loan.
On a median-priced home, taxes and insurance combined commonly add $400-$900 per month on top of principal and interest, so a $2,200 P&I payment can easily become a $2,800-$3,000 real-world house payment.
Property Taxes Vary Widely by State
Property tax rates are set locally, so your bill depends heavily on where you buy. The table below shows approximate effective annual property tax rates for a sample of states, applied to a $350,000 home.
| State | Approx. Effective Rate | Est. Annual Tax on $350,000 Home |
|---|---|---|
| New Jersey | ~2.2% | $7,700 |
| Illinois | ~2.0% | $7,000 |
| Texas | ~1.6% | $5,600 |
| Ohio | ~1.4% | $4,900 |
| Florida | ~0.9% | $3,150 |
| Alabama | ~0.4% | $1,400 |
These are illustrative statewide averages; county and city rates can differ significantly, so check the specific parcel before budgeting.
Homeowners Insurance, HOA Dues, and Escrow
Homeowners insurance typically runs $1,200-$2,500 per year for a median-value home, though coastal, wildfire-prone, and severe-weather regions can see premiums two to three times higher. If you buy a condo or a home in a planned community, expect HOA dues on top of PITI — commonly $50-$400 per month for a single-family HOA and $200-$800+ for condos with shared amenities, and HOA dues are generally not escrowed by your lender. Escrow accounts, which most lenders require when your down payment is under 20%, collect roughly 1/12 of your annual taxes and insurance with every mortgage payment so the servicer can pay those bills on your behalf when due.
The 28/36 Rule: How Much House You Can Afford
A widely used affordability guideline says your total housing payment (PITI) should stay at or below 28% of your gross monthly income, and your total debt payments — including the house payment, car loans, student loans, and credit cards — should stay at or below 36%. The table below shows approximate maximum housing payments at the 28% threshold for various household incomes.
| Gross Annual Income | Gross Monthly Income | Max Housing Payment (28%) |
|---|---|---|
| $60,000 | $5,000 | $1,400 |
| $85,000 | $7,083 | $1,983 |
| $110,000 | $9,167 | $2,567 |
| $150,000 | $12,500 | $3,500 |
| $200,000 | $16,667 | $4,667 |
First-Time Buyer Programs and Closing Costs
Many states and local housing agencies offer down payment assistance, below-market second mortgages, or mortgage credit certificates for first-time buyers, often paired with FHA, VA, or USDA financing. Beyond the down payment, budget for closing costs of roughly 2%-5% of the purchase price, covering the appraisal, title insurance, loan origination fees, recording fees, and prepaid items like the first year of homeowners insurance and initial escrow deposits. On a $350,000 purchase, that's typically $7,000-$17,500 due at closing in addition to your down payment, though sellers can sometimes contribute toward these costs.
Budgeting for Maintenance and Utilities
Your house payment is only part of the cost of owning a home. Most financial planners suggest setting aside 1%-2% of your home's value annually for maintenance and repairs — about $3,500-$7,000 per year on a $350,000 home — to cover things like roof repairs, HVAC servicing, and appliance replacement. Utilities (electricity, gas, water, trash, and internet) typically add another $300-$500 per month depending on home size and climate. Factoring these costs in alongside PITI gives you a realistic picture of total homeownership expenses before you commit to an offer.