Mortgage Calculator: How Much House Can You Actually Afford?
The monthly payment is only part of the story. Our mortgage calculator shows total interest, payoff timeline, and how extra payments change everything.
Most mortgage calculators give you a monthly payment and call it a day. That number is almost useless without context.
What you actually need to know before you buy:
- Total interest paid over the life of the loan — on a $350,000 30-year mortgage at 6.5%, you’ll pay $446,000 in interest. That house costs $796,000.
- How a shorter term changes the picture — a 15-year mortgage at the same rate: monthly payment goes up $600, total interest drops by $240,000.
- What one extra payment per year does — on that same 30-year loan, one extra payment annually pays it off 4-5 years early and saves $60,000-80,000 in interest.
The Number Banks Don’t Lead With
Your bank pre-approves you for the maximum you can borrow. That’s not a recommendation — it’s a limit. The question isn’t what you qualify for; it’s what payment leaves you with enough cash flow to actually live your life.
The general rule: housing costs (PITI — principal, interest, taxes, insurance) should be 28% or less of gross monthly income. If you’re at 35-40%, you’re house-poor on paper even if the bank says yes.
Points: Pay More Now or More Later?
Discount points let you buy down your interest rate — each point costs 1% of the loan and typically reduces your rate by 0.25%. Whether that makes sense depends entirely on your break-even timeline.
If you’re paying $3,500 to save $45/month, you break even in 78 months. If you’re confident you’ll be in the house for 10+ years, that’s smart math. If you might move in 4 years, you’re paying to save someone else money.
Our mortgage calculator handles all of this — payment, amortization schedule, extra payment scenarios, and points break-even — in one place.