Mortgage Calculator
A $400,000 home with 20% down and a 30-year loan at 6.5% costs $2,022.62 a month in principal and interest, or $2,539.28 with 1.1% property tax and $1,800 a year of insurance. The calculator also adds PMI and HOA dues and shows total interest ($408,142 here) and a year-by-year amortization schedule.
By the Calculators With Steps team · Updated November 10, 2026 · How we check our math
- Loan amount
- $320,00080% of price
- Principal & interest
- $2,022.62/mo
- Property tax
- $366.67/mo
- Home insurance
- $150.00/mo
- Total interest
- $408,142
- Total of loan payments
- $728,142
- Down payment
- $80,00020% of price
- Payoff time
- 30 yr
- Principal & interest$2,022.62
- Property tax$366.67
- Insurance, PMI & HOA$150.00
- Principal
- Interest
Show yearly amortization schedule
| Year | Principal | Interest | Ending balance |
|---|---|---|---|
| 1 | $3,577 | $20,695 | $316,423 |
| 2 | $3,816 | $20,455 | $312,607 |
| 3 | $4,072 | $20,200 | $308,535 |
| 4 | $4,345 | $19,927 | $304,191 |
| 5 | $4,636 | $19,636 | $299,555 |
| 6 | $4,946 | $19,325 | $294,609 |
| 7 | $5,277 | $18,994 | $289,332 |
| 8 | $5,631 | $18,641 | $283,701 |
| 9 | $6,008 | $18,264 | $277,694 |
| 10 | $6,410 | $17,861 | $271,284 |
| 11 | $6,839 | $17,432 | $264,444 |
| 12 | $7,297 | $16,974 | $257,147 |
| 13 | $7,786 | $16,485 | $249,361 |
| 14 | $8,308 | $15,964 | $241,053 |
| 15 | $8,864 | $15,407 | $232,189 |
| 16 | $9,458 | $14,814 | $222,732 |
| 17 | $10,091 | $14,180 | $212,641 |
| 18 | $10,767 | $13,505 | $201,874 |
| 19 | $11,488 | $12,784 | $190,386 |
| 20 | $12,257 | $12,014 | $178,129 |
| 21 | $13,078 | $11,193 | $165,051 |
| 22 | $13,954 | $10,317 | $151,097 |
| 23 | $14,888 | $9,383 | $136,208 |
| 24 | $15,886 | $8,386 | $120,323 |
| 25 | $16,949 | $7,322 | $103,373 |
| 26 | $18,085 | $6,187 | $85,289 |
| 27 | $19,296 | $4,976 | $65,993 |
| 28 | $20,588 | $3,683 | $45,405 |
| 29 | $21,967 | $2,305 | $23,438 |
| 30 | $23,438 | $833 | $0 |
Estimates only. Your actual rate, taxes, insurance and PMI depend on your lender, location and credit profile.
How to use this mortgage calculator
- Home price – the purchase price you are planning to offer.
- Down payment – what you pay up front. Enter it as a percentage of the price (the default), or set Down payment as to Amount and type the dollar figure. The result shows the other value, so $80,000 down on a $400,000 home appears as 20% of the price. At 20% or more, PMI drops out of the result.
- Interest rate – the annual rate from your lender’s Loan Estimate. If you do not have a quote yet, the weekly Freddie Mac survey gives a fair national average.
- Loan term – 30 and 15 years are the most common fixed-rate terms in the U.S.
- Property tax, insurance, PMI and HOA – these make the estimate match what you will actually pay each month. Your county assessor publishes the local property tax rate.
- Extra payment (optional) – add a monthly prepayment to see how much interest and time it saves.
The result updates as you type. The breakdown bar shows where each dollar of your payment goes, the chart shows how the principal share grows over the years, and the schedule lists the remaining balance at the end of every year.
The mortgage payment formula
Lenders use the standard amortization formula for the principal and interest (P&I) portion:
M = P × r(1 + r)^n ÷ [(1 + r)^n − 1]
- M = monthly principal and interest payment
- P = loan amount (home price minus down payment)
- r = monthly interest rate (annual rate ÷ 12 ÷ 100)
- n = number of monthly payments (years × 12)
Your total monthly housing payment is usually quoted as PITI: principal, interest, taxes and insurance. If you put down less than 20% on a conventional loan, private mortgage insurance (PMI) is added. Condos and many newer neighborhoods also charge homeowners association (HOA) dues.
Worked example
Take a $400,000 home with 20% down at 6.5% for 30 years:
| Item | Monthly amount |
|---|---|
| Loan amount: $320,000 | — |
| Principal & interest | $2,022.62 |
| Property tax (1.1% of price) | $366.67 |
| Homeowners insurance ($1,800/yr) | $150.00 |
| PMI | $0 (20% down) |
| Total monthly payment | $2,539.28 |
Over 30 years you would pay about $408,000 in interest, more than the original loan. Drop the term to 15 years and P&I rises to about $2,788 a month, but total interest falls to roughly $182,000.
What drives your mortgage payment
- Interest rate. On a $320,000 loan, every 1 percentage point adds roughly $200 to $220 to the monthly P&I payment. Shopping several lenders and comparing Loan Estimates side by side is one of the easiest ways to save.
- Loan amount. A bigger down payment lowers both the payment and the total interest, and at 20% it removes PMI.
- Term. Shorter terms carry higher payments but much less total interest.
- Location. Property tax rates range from about 0.3% to more than 2% of home value depending on the state and county, and insurance costs rise in areas exposed to hurricanes, wildfire or flooding.
Understanding the amortization schedule
Early payments are mostly interest, because interest is charged on a large balance. As the balance falls, more of each payment goes to principal. In the example above, the first year’s payments include about $20,700 of interest and only $3,600 of principal. By year 25 the split has flipped. That is why extra payments made early in the loan save the most. Each extra dollar removes principal that would otherwise collect interest for decades.
How much house can you afford?
A common guideline is the 28/36 rule: keep total housing costs under 28% of gross monthly income and all debt payments, including the mortgage, under 36%. Lenders may approve higher ratios, but a payment that fits comfortably leaves room for repairs, savings and emergencies. Use our home affordability calculator to work backward from your income, or the debt-to-income ratio calculator to check where you stand.
Tips before you apply
- Get preapproved so you know your real rate. Online estimates assume good credit.
- Budget for closing costs, typically 2% to 5% of the loan amount, on top of the down payment.
- Ask about discount points. Paying points up front lowers the rate, which makes sense only if you keep the loan long enough to recover the cost.
- Recalculate with a rate 0.5% higher than your quote to see how much room your budget has if rates move before you lock.
Mortgage Calculator: frequently asked questions
How is a monthly mortgage payment calculated?
The principal and interest part uses the amortization formula M = P × r(1 + r)^n ÷ ((1 + r)^n − 1), where P is the loan amount, r is the annual rate divided by 12 and n is the number of monthly payments. Property tax, homeowners insurance, PMI and HOA dues are then added on top to get the full monthly housing payment.
What is the monthly payment on a $400,000 mortgage?
At a 6.5% fixed rate over 30 years, principal and interest on a $400,000 loan comes to about $2,528 a month. Over 15 years at the same rate it is about $3,484 a month. Taxes, insurance and PMI are extra and vary by location.
Does this mortgage calculator include taxes and insurance?
Yes. Enter your property tax rate and annual homeowners insurance premium and the calculator adds them to the payment, along with PMI when your down payment is below 20% and any HOA fees.
When does PMI go away?
On a conventional loan you can ask your lender to cancel PMI once your balance falls to 80% of the home's original value. Under the U.S. Homeowners Protection Act it must end automatically when the balance is scheduled to reach 78%, provided you are current on payments. FHA mortgage insurance follows different rules.
Is it better to take a 15-year or a 30-year mortgage?
A 15-year loan has a higher monthly payment but usually a lower rate and far less total interest. A 30-year loan keeps the payment lower and leaves more room in your budget. Run both terms in the calculator and compare the total interest figure.
How much do extra payments save on a mortgage?
Every extra dollar goes straight to principal, so it cuts the interest charged in every later month. On a $320,000 loan at 6.5% over 30 years, paying an extra $200 a month saves roughly $105,000 in interest and pays the loan off about six and a half years early.
How much should I put down on a house?
Twenty percent avoids PMI on a conventional loan, but it is not required. Many conventional loans allow 3% to 5% down and FHA loans allow 3.5%. A smaller down payment means a larger loan, a higher monthly payment and usually PMI.
How we checked this page: every figure in the examples and FAQs above is produced by this calculator and verified by automated tests against known answers, and the rules and rates come from the sources below. Last updated . Spotted a problem? Tell us.