About Mortgage Calculator
A mortgage payment typically includes four components: principal, interest, taxes, and insurance (PITI). If your down payment is less than 20%, you may also need to pay Private Mortgage Insurance (PMI). Use this calculator to get a complete picture of your monthly housing costs.
When to Use This Calculator
Use this calculator before starting your home search to determine what price range fits your budget. It's also essential when comparing different properties with varying property tax rates. When refinancing, run your current mortgage vs. the proposed new loan to see if the savings justify the closing costs. Real estate investors use it to evaluate rental property cash flow by comparing total monthly costs against expected rental income.
How to Interpret Your Results
For a $400,000 home with $80,000 down (20%) at 6.5% for 30 years: Loan = $320,000, P&I = $2,023/month, Property Tax = $300/month ($3,600/yr), Insurance = $100/month ($1,200/yr), PMI = $0 (because you put 20% down). Total monthly payment = $2,423. If you only put 10% down ($40,000), PMI adds about $133/month, making total = $2,556 — an extra $133/month until you reach 20% equity in the home.
How to Use This Calculator
Enter the home price, down payment amount, interest rate, and loan term. Then add your annual property tax and home insurance estimates. If your down payment is under 20%, enter your PMI rate too. Click Calculate to see your total monthly payment broken down into principal and interest, property tax, insurance, and PMI if applicable. The doughnut chart shows the monthly payment breakdown visually.
Frequently Asked Questions
15-year vs 30-year: which is better?
For most first-time buyers, a 30-year mortgage is practical because the lower payment leaves room for furnishing, repairs, and emergency savings. On a Rs. 50 lakh loan at 8.5%, 30-year EMI is Rs. 38,400 while 15-year is Rs. 49,200—a Rs. 10,800 difference. However, the 15-year saves roughly Rs. 68 lakh in total interest. Smart compromise: take the 30-year but make extra principal payments whenever possible.
What costs are included beyond principal and interest?
Actual monthly housing cost includes: P&I, property taxes (1-2% of property value annually), homeowner’s insurance, PMI (if down payment under 20%), and maintenance (budget 1% of property value annually). On a Rs. 60 lakh home with 15% down, the P&I is Rs. 41,400, plus taxes Rs. 6,000, insurance Rs. 2,500, PMI Rs. 3,000, maintenance Rs. 5,000 = true cost of Rs. 57,900—40% higher than P&I alone.
Do biweekly payments really save money?
Biweekly payments split your monthly payment in half and pay every two weeks, resulting in 26 half-payments = 13 full payments per year instead of 12. The extra payment goes entirely to principal. On a Rs. 40 lakh loan at 8.5% for 30 years, biweekly shortens the loan to about 24 years and saves roughly Rs. 14 lakh in interest. Confirm with your lender that payments are applied correctly.
What LTV ratio avoids PMI?
PMI is required when loan-to-value exceeds 80% (down payment under 20%). On a Rs. 50 lakh property with 10% down, LTV is 90%, and PMI costs roughly 0.5-1% of the loan annually. PMI can be removed once LTV reaches 80% through payments or appreciation. Some lenders allow early removal after 2 years with a good payment history.
What if interest rates drop significantly?
Two options. Refinancing replaces your mortgage at a lower rate—on a Rs. 40 lakh loan dropping from 8.5% to 7%, save about Rs. 4,200 monthly. But refinancing costs 2-5% of the loan. The break-even point should be under 24 months. Alternatively, recast by paying a lump sum toward principal and having the lender recalculate your payment at the same rate.