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Estimate your monthly mortgage payment for any home purchase or refinance. Calculate principal, interest, property taxes, insurance, HOA fees, and see a full breakdown of your loan. Compare different loan terms, down payments, and interest rates. Perfect for new buyers and existing homeowners planning their next move.
Mortgage Calculator
Enter your loan details to see a personalized mortgage payment breakdown, including optional costs for a more accurate estimate.
Monthly Mortgage Payment
$0
Total Payment (All Years)
$0
Monthly Taxes, Insurance, HOA, PMI
$0
Principal & Interest Only
$0
Disclaimer: The calculations provided by this tool are estimates for educational purposes only. Actual mortgage payments may vary based on your lender, credit score, property taxes, insurance rates, and other factors. Always consult with a qualified mortgage lender or financial advisor before making home buying decisions.
Understanding Your Mortgage Payment: A Complete Guide
A mortgage payment is typically the largest monthly expense for American homeowners. Understanding what goes into your payment — and how different factors affect the total cost of your home — is essential for making an informed buying decision. Your monthly mortgage payment consists of up to four components, commonly referred to as PITI: Principal, Interest, Taxes, and Insurance.
Principal is the portion of your payment that reduces your loan balance. In the early years of a mortgage, most of your payment goes toward interest rather than principal. Over time, this ratio shifts, and more of each payment reduces the actual loan balance. Interest is the cost your lender charges for borrowing money, calculated as a percentage of the remaining loan balance. Even a small difference in interest rate — say 6.5% versus 7.0% — can mean tens of thousands of dollars over a 30-year loan.
Property taxes vary significantly by state and locality, ranging from about 0.3% to over 2% of your home's assessed value annually. Homeowner's insurance protects your property against damage and typically costs $1,500-$3,000 per year for a median-priced home. If your down payment is less than 20%, you will also pay Private Mortgage Insurance (PMI), which typically adds 0.5-1.5% of the loan amount per year. Use our PMI Calculator to estimate this cost.
How to Use This Mortgage Payment Calculator
Home Price ($): Enter the total purchase price of the home. The median U.S. home price is approximately $400,000 as of 2026, though this varies dramatically by region.
Down Payment ($): Enter your down payment amount. A 20% down payment avoids PMI, but many first-time buyer programs accept as little as 3-3.5% down.
Loan Term (years): Choose between 15-year and 30-year terms. A 15-year mortgage has higher monthly payments but significantly lower total interest costs.
Interest Rate (%): Enter your expected mortgage interest rate. Your rate depends on credit score, down payment, loan type, and market conditions.
Property Tax Rate (%): Enter your local property tax rate as a percentage of home value. Check your county assessor's website for accurate rates.
Annual Insurance ($): Enter your estimated annual homeowner's insurance premium.
Monthly HOA (if applicable): Enter homeowner's association fees if your property has them.
Pro Tip: Use the Mortgage Affordability Calculator first to determine how much home you can afford based on your income, then use this calculator to see the exact monthly breakdown.
The Mortgage Payment Formula Explained
M = P × [r(1+r)n] / [(1+r)n - 1]
M = monthly payment (principal and interest only)
P = loan principal (home price minus down payment)
r = monthly interest rate (annual rate / 12)
n = total number of payments (loan term in years × 12)
Worked Example
For a $400,000 home with 20% down ($80,000), a 30-year loan at 6.5% interest:
P = $320,000, r = 0.065/12 = 0.005417, n = 360
M = 320,000 × [0.005417(1.005417)360] / [(1.005417)360 - 1] M = $2,023/month (principal & interest)
Add property tax (~$333/mo), insurance (~$167/mo): Total PITI = ~$2,523/month
Over 30 years, you would pay $728,280 in total payments on a $320,000 loan — meaning $408,280 goes to interest alone. This is why considering a shorter loan term can save substantial money. See our Amortization Schedule Calculator to view a full payment-by-payment breakdown.
15-Year vs 30-Year Mortgage Comparison
The table below compares monthly payments and total costs for a $320,000 mortgage at different interest rates and loan terms. A 15-year mortgage typically carries a lower interest rate (about 0.5-0.75% less) than a 30-year mortgage.
Loan Term
Rate
Monthly P&I
Total Interest
Total Cost
30-Year Fixed
6.50%
$2,023
$408,280
$728,280
15-Year Fixed
5.85%
$2,680
$162,400
$482,400
Savings with 15-Year
$245,880
$245,880
Based on a $320,000 loan amount. The 15-year mortgage costs $657 more per month but saves nearly $246,000 in total interest. Whether the higher payment is worth it depends on your budget and other financial priorities.
5 Ways to Lower Your Mortgage Payment
1. Improve Your Credit Score Before Applying
A credit score of 760+ typically qualifies for the best mortgage rates. Improving your score from 680 to 760 could lower your rate by 0.5-1.0%, saving hundreds per month. Use our Credit Score Estimator to check where you stand.
2. Make a Larger Down Payment
A 20% down payment eliminates PMI (saving $100-$300+ per month) and reduces your loan amount. Even if you cannot reach 20%, every extra dollar in your down payment reduces your monthly payment and total interest.
3. Shop Multiple Lenders
Mortgage rates can vary by 0.25-0.5% between lenders. Getting quotes from at least 3-5 lenders — including banks, credit unions, and online lenders — can save you thousands over the life of the loan. All rate inquiries within a 14-45 day window count as a single credit pull.
4. Consider Buying Mortgage Points
Discount points allow you to pay upfront to lower your interest rate. One point costs 1% of the loan and typically reduces the rate by 0.25%. This makes sense if you plan to stay in the home long enough to recoup the upfront cost through lower payments.
5. Refinance When Rates Drop
If interest rates fall by 0.75-1% or more below your current rate, refinancing could significantly lower your payment. Use our Refinance Calculator to see if refinancing makes sense for your situation.
Scenario Comparison: Monthly Mortgage Payment Comparison by Rate and Loan Amount
Monthly principal and interest payments for a 30-year fixed mortgage at different interest rates and loan amounts.
Loan Amount
5.0%
6.0%
7.0%
8.0%
$200,000
$1,074
$1,199
$1,331
$1,468
$300,000
$1,610
$1,799
$1,996
$2,201
$400,000
$2,147
$2,398
$2,661
$2,935
$500,000
$2,684
$2,998
$3,327
$3,669
$600,000
$3,221
$3,597
$3,992
$4,402
Frequently Asked Questions
A common guideline is the 28/36 rule: your mortgage payment should not exceed 28% of your gross monthly income, and your total debt payments (including mortgage) should not exceed 36%. For example, if your household income is $100,000/year ($8,333/month), your maximum mortgage payment would be approximately $2,333. Use our Mortgage Affordability Calculator for a personalized estimate based on your income and debts.
A fixed-rate mortgage locks in your interest rate for the entire loan term (typically 15 or 30 years), so your principal and interest payment never changes. An adjustable-rate mortgage (ARM) starts with a lower introductory rate for a set period (e.g., 5 or 7 years), then adjusts periodically based on market rates. ARMs can save money in the short term but carry the risk of significantly higher payments if rates increase. Fixed-rate mortgages are generally recommended for buyers who plan to stay in their home long-term.
Private Mortgage Insurance (PMI) is required by lenders when your down payment is less than 20% of the home price. PMI typically costs 0.5-1.5% of the loan amount per year. For a $320,000 loan, that is $1,600-$4,800 annually ($133-$400/month). You can avoid PMI by making a 20% down payment, using a VA loan (no PMI for veterans), or choosing a lender-paid PMI option where the cost is built into a slightly higher interest rate. PMI can be removed once you reach 20% equity in your home. Calculate your PMI cost with our PMI Calculator.
Making extra principal payments can save substantial interest and shorten your loan term. For example, adding just $200/month to a $320,000, 30-year mortgage at 6.5% could save you over $100,000 in interest and pay off the loan 7 years early. However, extra payments may not be the best use of your money if you have higher-interest debt, lack an emergency fund, or are not maximizing tax-advantaged retirement account contributions. Read our blog post on whether to pay off your mortgage early for a detailed analysis.
Closing costs typically range from 2-5% of the loan amount and include lender fees (origination, appraisal, credit report), title insurance, escrow deposits for taxes and insurance, attorney fees, and recording fees. On a $320,000 mortgage, expect $6,400-$16,000 in closing costs. Some of these are negotiable, and some sellers may agree to cover a portion. Your lender is required to provide a Loan Estimate within 3 business days of application. Read our First-Time Homebuyer Guide for a comprehensive breakdown of all costs involved.
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