What does the mortgage calculator include?
This calculator includes principal & interest, property tax, home insurance, HOA fees, PMI (auto-calculated when down payment is under 20%), maintenance estimates, and monthly utilities — giving you the true all-in monthly cost.
What is PMI and when do I need it?
PMI (Private Mortgage Insurance) is required by most lenders when your down payment is less than 20% of the home's value. The calculator automatically estimates it at 0.6% of the loan annually and stops it once you reach 20% equity.
How is the principal and interest calculated?
It uses the standard amortisation formula based on the loan amount, annual interest rate, and term in years to calculate your fixed monthly payment.
Should I include maintenance costs?
Yes — most financial advisors recommend budgeting 1% of the home's value annually for maintenance and repairs. This calculator includes it as an adjustable field so you can see the real cost of ownership.
What is a good debt-to-income ratio for a mortgage?
Lenders typically prefer your total monthly debt payments (including the mortgage) to be under 43% of gross monthly income, with the mortgage itself under 28%.