Free tool · No signup · No data stored
California Mortgage Calculator
A California mortgage payment has four parts (PITI): principal, interest, property taxes (averaging 1.1% of home value), and homeowners insurance. If your down payment is under 20%, add PMI (private mortgage insurance). This calculator computes all four components instantly using the standard amortization formula M = P × [r(1+r)n] / [(1+r)n - 1], with California-accurate tax and insurance defaults. Adjust any field to see your real payment.
Loan details
Your monthly payment
Total monthly (PITI + HOA)
Your financials
You can afford
Maximum home price
This estimate uses California-average 1.1% property tax and $1,800/year insurance. Your actual approval may differ based on credit score, employment, and assets. Most California lenders cap conforming loans at 43% DTI; FHA goes to 50%.
Loan parameters
Amortization by year
| Year | Principal | Interest | Balance |
|---|
How California mortgage payments are calculated
The four parts of a California mortgage payment (PITI)
Every California mortgage payment is the sum of four components, sometimes called PITI:
- Principal: The portion that pays down your loan balance. Higher early in the loan? No — actually higher later. Early payments are mostly interest.
- Interest: What the lender charges for borrowing. Calculated monthly on the remaining balance.
- Taxes: Property taxes, paid through an escrow account. California's effective rate averages 1.1% of purchase price, sometimes higher with Mello-Roos.
- Insurance: Homeowners insurance, also escrowed. Typically $1,200–$3,000/year in California; higher in wildfire zones.
If your down payment is less than 20% on a conventional loan, add a fifth component: PMI (private mortgage insurance), typically 0.3% to 1.5% of the loan amount annually.
The amortization formula
The monthly principal-and-interest payment uses this formula:
M = P × [r(1+r)n] / [(1+r)n − 1]
Where M = monthly payment, P = principal (loan amount), r = monthly interest rate (annual rate ÷ 12), and n = total number of payments (years × 12). Our calculator runs this formula in JavaScript every time you adjust an input.
How affordability is determined
Lenders use two debt-to-income (DTI) ratios:
- Front-end DTI: Housing payment ÷ gross monthly income. Typically capped at 28% conservatively, 36% moderately.
- Back-end DTI: Total monthly debt (housing + car + student + credit cards) ÷ gross income. Conforming loans cap at 43%; FHA and non-QM go to 50%.
Save Financial's calculator uses back-end DTI to compute the maximum home price you can afford given your income, debts, and down payment.
Frequently asked questions
What is a good California property tax rate to use?
Use 1.1% as a default for most California properties. For new construction in Mello-Roos districts (common in parts of Riverside, San Bernardino, Sacramento, and Placer counties), bump it to 1.6%–1.8%. For older established neighborhoods under Proposition 13 protection, the effective rate is closer to 0.8%–1.0%.
When does PMI fall off?
On conventional loans, PMI automatically terminates when your loan balance reaches 78% of the original purchase price. You can request manual removal at 80% LTV with a fresh appraisal. FHA mortgage insurance (MIP) is different: it stays for the life of the loan if you put less than 10% down, or for 11 years if you put 10% or more down.
Does this calculator save my information?
No. The calculator runs entirely in your browser. Nothing is sent to a server. No data is stored. You can refresh the page and everything resets.
How does extra principal payment help?
Adding even $100–$200/month in extra principal can shave years off a 30-year mortgage and save tens of thousands in interest. On a $600,000 loan at 6.5%, adding $200/month extra pays the loan off about 4.5 years early and saves roughly $98,000 in interest. Use the Amortization tab to model your scenario.