Mortgage Calculator
Calculate your monthly mortgage payment with taxes, insurance, and PMI. Results update instantly.
Enter your loan details below — results update as you type.
Current avg 30-yr fixed: 6.4% (Freddie Mac, Apr 2026)
Required when down payment is below 20%.
Monthly Payment (P&I)
$2,001.62
Principal & interest only
Total Monthly Payment
$2,568.29
Includes taxes, insurance & fees
Total Interest
$400,582.81
Total of Payments
$720,582.81
Payoff Date
April 2056
Results are estimates for educational purposes. Not financial advice. See disclaimer.
Amortization Schedule
| Year | Payment | Principal | Interest | Balance |
|---|---|---|---|---|
| 1 | $24,019.43 | $3,645.12 | $20,374.31 | $316,354.88 |
| 2 | $24,019.43 | $3,885.37 | $20,134.05 | $312,469.51 |
| 3 | $24,019.43 | $4,141.46 | $19,877.97 | $308,328.05 |
| 4 | $24,019.43 | $4,414.43 | $19,605.00 | $303,913.62 |
| 5 | $24,019.43 | $4,705.39 | $19,314.04 | $299,208.23 |
| 6 | $24,019.43 | $5,015.53 | $19,003.90 | $294,192.70 |
| 7 | $24,019.43 | $5,346.11 | $18,673.32 | $288,846.60 |
| 8 | $24,019.43 | $5,698.47 | $18,320.95 | $283,148.12 |
| 9 | $24,019.43 | $6,074.07 | $17,945.36 | $277,074.06 |
| 10 | $24,019.43 | $6,474.41 | $17,545.01 | $270,599.64 |
How to Use This Mortgage Calculator
Enter a few key numbers about the home you're considering and you'll see your estimated monthly payment instantly — no need to click Calculate first. Every field updates your results automatically as soon as you move to the next one.
1. Enter the home price
Type in the total purchase price of the home. Use the current listing price, or the amount you plan to offer. Our default of $400,000 reflects a common price point in many U.S. markets as of 2026, but the calculator works for any amount.
2. Set your down payment
You can enter your down payment as a dollar amount or a percentage — both fields stay in sync. The standard recommendation is 20%, which eliminates private mortgage insurance (PMI) and typically earns you a better rate. If you put down less than 20%, the calculator automatically factors in PMI.
3. Choose your loan term
Most buyers choose 30 years for the lower monthly payment, or 15 years to pay significantly less interest over time. The calculator supports 10, 15, 20, 25, and 30-year terms. Try switching between them — the difference in total interest paid is often eye-opening.
4. Enter your interest rate
Use the rate you've been quoted, or the current Freddie Mac average as a starting point. As of April 2026, the average 30-year fixed rate is approximately 6.4%. Even a 0.25% difference in rate changes your monthly payment by $50–$80 on a $320,000 loan — and tens of thousands in total interest.
5. Add taxes, insurance, and fees
Click Show advanced options to include property taxes, home insurance, PMI, and HOA fees. These costs are real and recurring — for most homeowners, they add $400–$700/month beyond the base mortgage payment. The default property tax rate of 1.2% is the U.S. average; your actual rate varies by county.
How Mortgage Payments Are Calculated
Every fixed-rate mortgage uses the same standard amortization formula. Your payment covers two things each month: interest on the loan balance, and a portion of the principal you borrowed.
Where:
- M = monthly payment
- P = principal (home price minus down payment)
- r = monthly interest rate (annual rate ÷ 12 ÷ 100)
- n = total number of payments (years × 12)
A worked example
For a $400,000 home with 20% down at 6.40% for 30 years:
- P = $320,000 (the loan amount)
- r = 6.40 ÷ 12 ÷ 100 = 0.005333 (monthly rate)
- n = 30 × 12 = 360 (total payments)
- M = $2,001.62/month for principal and interest
That $2,001.62 never changes — it's the same every month for 30 years. What changes is the split between interest and principal. In month one, roughly $1,707 goes to interest and only $293 reduces your balance. By year 20, the split has flipped: more than half of each payment chips away at the principal.
This is why making even one extra payment per year has such a dramatic effect. Extra principal payments reduce your balance faster, which reduces future interest charges, which accelerates payoff even further — a compounding effect that works in your favor.
The full monthly cost
The P&I payment is just one piece. Your real monthly cost also includes:
- Property taxes — typically 0.5%–2.5% of home value per year, divided by 12. The U.S. average is 1.1%, per the Tax Foundation.
- Home insurance — roughly 0.5% of home value annually, or about $167/month on a $400,000 home.
- PMI — required below 20% down, usually 0.5%–1.5% of the loan per year. Cancelable once you reach 20% equity.
- HOA fees — $0 to $500+/month depending on your community.
Understanding Your Results
Monthly P&I
This is the core payment your lender cares about. It's fixed for the life of a fixed-rate loan — the same amount every month, regardless of what happens to interest rates. Lenders use this number when calculating your debt-to-income ratio for loan approval.
Total monthly payment
This is what you actually budget for each month. Taxes and insurance are usually collected monthly by your lender and placed in an escrow account, then paid to the relevant parties on your behalf. The total monthly payment is the real number to test against the 28% income guideline.
Total interest paid
This number is often a surprise. On a $320,000 loan at 6.4% for 30 years, you'll pay roughly $400,000 in interest — more than the original loan amount. Choosing a 15-year term at the same rate cuts that figure to approximately $175,000, saving around $225,000. The difference is time.
The amortization schedule
This table shows how each payment is allocated, year by year. In the early years, most of your payment goes to interest. This is why selling or refinancing in the first 5–7 years has a different financial profile than doing so in year 25. The schedule gives you a clear view of where your money actually goes.
Frequently Asked Questions
What is a good monthly mortgage payment for a $400,000 home?
With 20% down, a 30-year loan at 6.4%, the P&I payment is roughly $2,000/month. Add property taxes and insurance and the total runs $2,400–$2,700 for most buyers. A common guideline is keeping total housing costs below 28% of gross monthly income — so you'd need roughly $100,000 in annual income.
How much income do I need to afford a $400,000 house?
Using the 28% rule: if total housing costs (P&I, taxes, insurance) are around $2,500/month, you'd need roughly $8,929/month in gross income — or about $107,000 per year. Lenders also look at your debt-to-income ratio; total monthly debt payments should generally stay below 36% of gross income.
What happens if I make one extra mortgage payment per year?
On a $320,000 loan at 6.4% for 30 years, making one extra payment annually saves approximately $62,000 in interest and cuts nearly 5 years off the loan. Every extra dollar applied to principal reduces future interest because interest is calculated on the remaining balance each month.
Is PMI worth paying to buy a home sooner?
It depends on your market and situation. PMI typically costs 0.5%–1.5% of the loan per year — about $133–$400/month on a $320,000 loan. If home prices are rising faster than PMI costs, buying sooner can make sense. PMI is cancelable once you reach 20% equity, usually within 5–7 years of on-time payments.
What credit score do I need for the best mortgage rates?
Most conventional lenders offer the lowest rates to borrowers with scores of 740 or higher. You can qualify with a 620, but the rate will be meaningfully higher. According to Bankrate, the difference between a 680 and 760 score on a $320,000 mortgage can add $100–$200/month to your payment — roughly $36,000–$72,000 over 30 years.
Should I choose a 15-year or 30-year mortgage?
A 15-year loan costs more each month but saves enormous interest. On $320,000 at 6.4%, the 30-year P&I is ~$2,000/month; the 15-year runs ~$2,770/month. The extra $770/month buys you the loan paid off 15 years sooner and roughly $220,000 less in total interest. Choose 30 years only if you'll reliably invest the difference.
Can I use this calculator for a refinance?
Yes. Enter your remaining loan balance as the home price, set down payment to $0 (or your equity amount for cash-out), then enter the new rate and term. The results show your new monthly payment and total cost of the refinanced loan — making it easy to compare against your current payment.