Your mortgage payment is only part of your housing budget
A principal-and-interest estimate is a starting point. Add the property costs that are paid through a lender or separately before deciding what fits your monthly budget.
Mortgage calculator →Identify what the calculator includes
Enter the property price and down payment to find the financed principal. The repayment calculation then uses the rate and term to estimate principal and interest. It does not look up property taxes, insurance premiums, building charges or maintenance. In the United States, an escrow account may collect some of these costs; that arrangement should not be assumed for every country or loan.
Convert annual bills into monthly amounts
Suppose the calculated payment is 1,200, annual insurance is 960, annual property-related tax is 2,400 and monthly building charges are 100. The monthly budget becomes 1,200 + 960/12 + 2,400/12 + 100 = 1,580, before maintenance. All figures use one currency. Keep a separate repair allowance instead of treating the difference between 1,200 and 1,580 as loan interest.
Compare two different affordability views
Compare this fuller budget with take-home income and essential spending. A debt-to-income calculation normally uses gross income and answers a different question, so its percentage is not a complete household budget. Replace every illustrative cost with a local bill or quote. A fixed borrowing rate also does not freeze insurance or taxes, and a variable-rate loan may change the principal-and-interest payment itself.
Try the calculators
- Mortgage calculator
Understand your monthly payment and the true cost of a home.
- Loan calculator
Compare terms and see what borrowing will cost.
- Debt-to-income ratio calculator
Compare monthly debt payments with gross monthly income.