Mortgage Payment Calculator
Estimate your monthly mortgage payment and the full cost of the loan so you can shop with a clear budget
About the Calculator
Your mortgage payment isn't just a number — it's the commitment you'll live with for the next 15 to 30 years. This calculator builds the complete monthly picture: principal, interest, property taxes, insurance, and HOA fees combined into a single total, so you're budgeting against what you'll actually pay rather than just the loan P&I your lender quotes. It also lets you compare loan terms side by side, see exactly how your rate affects the payment, and run the amortization schedule to understand where your money goes each year. Use it before you make an offer, before you accept a rate, and before you decide between a 15-year and 30-year loan. The numbers clarify decisions that instinct alone can't.
The purchase price of the home
Amount ($)
Percent (%)
✓ 20%+ - No PMI required
Typical minimum is 3-5% for first-time buyers
Today's average 30-year rate: 6.8%
Your Monthly Payment
$2,603/month
30-year fixed at 6.8%
$320,000 loan amount
Monthly Payment Breakdown
Loan Amount
$320,000
Total Interest Paid
$431,018
Total Cost of Home
$831,018
Payoff Date
April 2056
Loan Term Comparison
| 30-Year Fixed | 15-Year Fixed | |
|---|---|---|
| Monthly P&I: | $2,086 | $2,841 |
| Total Interest: | $431,018 | $191,306 |
| You save: | - | $239,712 |
| You pay more: | - | $754/mo |
The 15-year saves $239,712 in interest but costs $754 more each month
How Your Rate Affects Your Payment
$400,000 home, 20% down, 30-year
| Rate | Monthly P&I | vs. Current |
|---|---|---|
| 5.5% | $1,817 | $269 |
| 6.0% | $1,919 | $168 |
| 6.5% | $2,023 | $64 |
| 6.8% ← Current | $2,086 | - |
| 7.0% | $2,129 | +$43 |
| 7.5% | $2,237 | +$151 |
| 8.0% | $2,348 | +$262 |
💡 Every 0.5% rate difference ≈ ~$100/month
💡 What If I Pay Extra?
Quick examples:
Extra $100: Save 3yr 10mo | Save $66,700
Extra $200: Save 6yr 9mo | Save $113,437
Extra $300: Save 8yr 11mo | Save $148,484
Extra $500: Save 12yr 2mo | Save $198,205
Amortization Schedule
| Year | Balance Remaining | Interest Paid (cumulative) |
|---|---|---|
| 1 | $319,727 | $1,813 |
| 1 | $316,622 | $21,656 |
| 2 | $313,007 | $43,075 |
| 3 | $309,139 | $64,240 |
| 4 | $304,999 | $85,134 |
| 5 | $300,568 | $105,738 |
| 6 | $295,827 | $126,031 |
| 7 | $290,753 | $145,991 |
| 8 | $285,323 | $165,595 |
| 9 | $279,512 | $184,818 |
| 10 | $273,294 | $203,633 |
| 11 | $266,639 | $222,012 |
| 12 | $259,517 | $239,925 |
| 13 | $251,896 | $257,337 |
| 14 | $243,740 | $274,215 |
| 15 | $235,012 | $290,521 |
| 16 | $225,671 | $306,214 |
| 17 | $215,675 | $321,252 |
| 18 | $204,978 | $335,588 |
| 19 | $193,530 | $349,174 |
| 20 | $181,279 | $361,957 |
| 21 | $168,168 | $373,881 |
| 22 | $154,138 | $384,884 |
| 23 | $139,123 | $394,903 |
| 24 | $123,055 | $403,869 |
| 25 | $105,859 | $411,707 |
| 26 | $87,457 | $418,339 |
| 27 | $67,764 | $423,680 |
| 28 | $46,689 | $427,639 |
| 29 | $24,136 | $430,120 |
| 30 | $0 | $431,018 |
How to Calculate Your Mortgage Payment
Your monthly mortgage payment is calculated using a standard formula that considers your loan amount, interest rate, and loan term. The formula divides your annual interest rate by 12 to get the monthly rate, then applies it to calculate equal payments that will fully pay off your loan over the specified term. Most mortgage payments include PITI: Principal (paying down your loan), Interest (cost of borrowing), Taxes (property taxes), and Insurance (homeowners insurance). If your down payment is less than 20%, Private Mortgage Insurance (PMI) is typically added to protect the lender.
What Affects Your Monthly Mortgage Payment?
Home Price and Loan Amount
The purchase price minus your down payment determines your loan amount. A larger loan means higher monthly payments.
Down Payment Size
Putting down 20% or more eliminates PMI and reduces your loan amount, lowering your monthly payment significantly.
Interest Rate
Your interest rate has a massive impact. Even a 0.5% difference can save or cost tens of thousands over the loan term.
Loan Term
30-year mortgages have lower monthly payments but cost more in interest. 15-year loans have higher payments but save significantly on interest.
Property Taxes
Property tax rates vary widely by location, from less than 0.5% to over 2% of your home's value annually.
Homeowners Insurance
Required by all lenders, homeowners insurance typically costs $1,000-$2,500 annually depending on location and home value.
PMI (Private Mortgage Insurance)
If you put down less than 20%, lenders require PMI, typically costing 0.5-1% of the loan amount annually. It's automatically removed at 78% loan-to-value.
30-Year vs 15-Year Mortgage
The most common mortgage terms are 30-year and 15-year fixed-rate loans. Each has distinct advantages:
30-Year Fixed
- Lower monthly payments
- More flexibility in budget
- Higher total interest cost
- Slower equity building
15-Year Fixed
- Higher monthly payments
- Save $100,000+ in interest
- Build equity twice as fast
- Own your home sooner
Frequently Asked Questions
Disclaimer: This calculator provides estimates for educational purposes. Actual payments may vary based on lender requirements, exact interest rates, and local tax assessments. Consult a licensed mortgage professional for personalized advice.
Examples
Example 1: The standard first-time buyer
$420,000 home, 20% down ($84,000), $336,000 loan at 6.5% for 30 years. Monthly P&I: $2,124. Add estimated property tax ($350/month), homeowners insurance ($130/month), and no PMI (20% down). Total monthly payment: approximately $2,604. That payment requires a gross income of roughly $89,000–$95,000 to stay within the standard 28% housing expense ratio. The total interest paid over 30 years: approximately $428,000 — more than the original loan amount.
Example 2: The 15-year vs. 30-year decision
Same $336,000 loan. At 6.5% for 30 years: $2,124/month P&I, $428,000 total interest. At 6.0% for 15 years (15-year rates typically run 0.4–0.6% lower): $2,837/month P&I, $174,000 total interest. The 15-year costs $713 more per month but saves $254,000 in total interest and builds equity twice as fast. The real question isn’t which is mathematically better — the 15-year clearly is — but whether your budget can absorb the higher payment without leaving you cash-poor. Locking into a higher payment you can’t sustain is worse than the slower-but-affordable 30-year.
Example 3: The impact of rate shopping
A $380,000 loan — same borrower, same home, same day — quoted at 6.8% by one lender and 6.35% by another. Monthly P&I difference: $2,484 vs. $2,368 — a gap of $116/month. Over 30 years, that’s $41,760 in additional interest from the higher-rate lender. Getting quotes from at least three lenders before committing takes a few hours and can save tens of thousands of dollars. The Consumer Financial Protection Bureau estimates that borrowers who get at least five quotes save an average of $3,000 in interest over the first five years alone.
Buying in 2026 — what the rate environment means for your payment
The 30-year fixed mortgage rate currently sits around 6.3% — more than double the historic low of 2.65% recorded in January 2021. That shift has had a dramatic effect on what a given home price actually costs on a monthly basis. On a $400,000 loan:
| Rate | Monthly P&I | Total interest (30yr) |
|---|---|---|
| 2.65% (Jan 2021 low) | $1,613 | $180,680 |
| 4.00% (pre-2022 norm) | $1,910 | $287,478 |
| 6.30% (April 2026) | $2,478 | $492,080 |
| 7.50% (Oct 2023 peak) | $2,797 | $607,038 |
The difference between a 2.65% mortgage and today’s 6.3% rate on a $400,000 loan is $865/month — and over $311,000 in lifetime interest. This isn’t meant to discourage buying; it’s meant to ensure you’re comparing against current reality, not the rate environment of a few years ago. The silver lining: inventory has been recovering through 2025, giving buyers more negotiating room than any point since 2020, and sellers in many markets are increasingly willing to discuss rate buydowns as a concession.
ARM vs. fixed rate — which makes sense right now?
With 30-year fixed rates around 6.3%, adjustable-rate mortgages (ARMs) have re-entered the conversation for the first time since the 2010s. A 5/1 ARM might offer an initial rate of 5.4–5.7% — meaningfully lower than the fixed alternative — for the first five years before adjusting annually based on market conditions.
ARMs make mathematical sense in specific scenarios: if you’re confident you’ll sell or refinance within 5–7 years, or if you expect rates to decline and want to avoid locking in today’s rate long-term. They carry real risk: after the fixed period ends, your rate — and payment — can increase significantly if benchmark rates haven’t fallen. The adjustment caps (typically 2% per adjustment, 5–6% lifetime) define your worst-case scenario, and running those numbers before committing is essential.
The general rule: if you’re buying your long-term home and plan to stay 10+ years, a fixed rate eliminates rate risk at a known cost. If your horizon is shorter or you have strong conviction that rates will fall materially, an ARM warrants serious consideration.
Mortgage points and rate buydowns
A mortgage point is 1% of the loan amount paid upfront at closing in exchange for a lower interest rate — typically reducing the rate by 0.25% per point. On a $400,000 loan, one point costs $4,000 and might reduce the rate from 6.5% to 6.25%.
The key question is the breakeven period: how many months of lower payments does it take to recoup the upfront cost? At 6.5%, the monthly P&I on $400,000 is $2,528. At 6.25%, it’s $2,463 — a saving of $65/month. Dividing the $4,000 cost by $65/month gives a breakeven of about 62 months — just over 5 years. If you’ll stay in the home beyond that, buying the point is financially beneficial.
Seller-paid buydowns have become increasingly common in 2025–2026 as sellers compete for buyers. A temporary 2-1 buydown, for example, reduces your rate by 2% in year one and 1% in year two before reverting to the note rate — effectively giving you two years of lower payments as a closing concession. On a 6.5% loan, a 2-1 buydown means paying 4.5% in year one and 5.5% in year two. The seller typically covers the cost, making this a valuable negotiating tool in the current market.
FAQ
What is a good monthly mortgage payment?
The traditional guideline is that your total housing costs (PITI — principal, interest, taxes, insurance) should not exceed 28% of your gross monthly income. On a $90,000/year income ($7,500/month gross), that’s a $2,100/month housing budget. Many lenders will approve up to 31–36% of gross income, but qualifying for a payment and comfortably affording it are different thresholds. Build your budget around what leaves adequate room for savings, emergencies, and other financial goals — not the maximum a lender will approve.
What is included in a mortgage payment?
A full mortgage payment typically has four components — often abbreviated PITI. Principal is the portion reducing your loan balance. Interest is the lender’s charge for the loan. Taxes are your property taxes, typically collected monthly and held in escrow by the lender until due. Insurance is your homeowners insurance premium, also escrowed. If your down payment was less than 20%, PMI (private mortgage insurance) is a fifth component, typically 0.3–1.5% of the loan amount annually, added until you reach 20% equity.
What is included in a mortgage on a $500,000 house?
With 20% down ($100,000), your loan amount is $400,000. At 6.3%, a 30-year fixed mortgage gives a P&I payment of about $2,478/month. Add estimated property tax ($400–600/month depending on state), homeowners insurance ($150–200/month), and you’re looking at a total monthly payment of $3,030–$3,280. That requires a gross household income of roughly $108,000–$140,000 to stay within healthy DTI ratios.
When can I stop paying PMI?
PMI is legally required to be cancelled automatically when your loan balance reaches 78% of the original purchase price — but you can request cancellation at 80%. In a rising market, if your home’s value has increased, you may reach 20% equity faster than the amortization schedule suggests. Getting a new appraisal to document the higher value and formally requesting PMI removal can eliminate $150–$300/month from your payment earlier than the standard schedule.
What’s the difference between interest rate and APR on a mortgage?
The interest rate is the base cost of borrowing — it determines your monthly P&I payment. APR (Annual Percentage Rate) includes the interest rate plus lender fees (origination fees, points, broker fees) expressed as a single annualized rate. APR is always equal to or higher than the interest rate. For comparing loan offers from different lenders, APR gives a more accurate apples-to-apples comparison — a loan with a lower interest rate but higher fees may have a higher APR than a slightly higher-rate loan with minimal fees.
Is a 6% mortgage rate high?
By the standards of the 2010s and the pandemic era, yes. By historical standards, no — the 50-year average for 30-year fixed mortgage rates is approximately 7.7%. Rates below 4% (2012–2022) were the historical anomaly, not the norm. At 6–6.5%, buying is more expensive than it was in 2021, but the purchase still makes financial sense for buyers with a long enough time horizon, adequate down payment, and a home price that fits the payment within healthy DTI ratios.
Should I choose a 15-year or 30-year mortgage?
The 15-year typically offers a lower rate (0.4–0.7% less) and dramatically lower total interest — often 50–55% less. The tradeoff is a monthly payment roughly 40–50% higher. Choose a 15-year if the higher payment fits comfortably within your budget without leaving you financially exposed. Choose a 30-year if the payment flexibility matters more — you can always make extra principal payments on a 30-year loan to accelerate payoff, but you can’t reduce the required payment on a 15-year if cash gets tight.
Things Worth Knowing
- •Even a small change in rate can shift long term totals by a large amount.
- •Shorter time frames usually reduce total interest paid.
- •Using realistic assumptions is more helpful than optimistic guesses.
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