Mortgage Calculator
MORTGAGE & REAL ESTATE · FREE TOOL
- Updated for 2026 mortgage rates
- Includes taxes, insurance & PMI
- Full amortization schedule included
- Used by thousands of homebuyers
Mortgage Calculator
Estimate your monthly payment instantly. No sign-up required
Results are estimates for educational purposes only. Consult a licensed mortgage professional before making financial decisions.
How to Use This Mortgage Calculator
- Enter the home price: the total purchase price of the property.
- Enter your down payment: typically 3%–20% of the purchase price.
- Set the interest rate: use your lender’s quoted rate, or the current national average.
- Choose your loan term: 30 years is most common; 15 years saves significant interest.
Click “Calculate My Payment” your monthly payment, total cost, and payoff date appear instantly.
Tip: Click “+ Include Taxes & Insurance” for a more complete picture of your true monthly cost.
Today's Average Mortgage Rates
| Loan Term | Avg. Rate (2026) |
|---|---|
| 30-Year Fixed | ~6.5% – 7.0% |
| 20-Year Fixed | ~6.2% – 6.8% |
| 15-Year Fixed | ~5.9% – 6.4% |
| 10-Year Fixed | ~5.7% – 6.2% |
Rates change daily. Always confirm with your lender.
What Is a Mortgage and How Does Your Payment Work?
A mortgage is a loan used to purchase real estate. The lender provides the money to buy the home, and the borrower repays that amount plus interest over a set number of years. In the United States, the 30-year fixed-rate mortgage is by far the most popular option, accounting for roughly 70–90% of all home loans.
Your monthly mortgage payment is typically made up of four parts, often called PITI:
Principal: the portion of your payment that reduces your loan balance
Interest: the lender’s fee for providing the loan
Taxes: property taxes, usually collected monthly and held in escrow
Insurance: homeowner’s insurance (and PMI if your down payment is under 20%)
In the early years of your loan, the majority of each payment goes toward interest, not principal. This is called amortization and the amortization schedule in our calculator shows exactly how this shifts over time.
Mortgage Stats 2026
Understanding Every Part of Your Mortgage Payment
Loan Amount (Principal)
The loan amount is the home price minus your down payment. For example, if you buy a $400,000 home and put 20% ($80,000) down, your loan amount is $320,000. The larger your loan, the higher your monthly payment. Lenders also consider your debt-to-income ratio when determining how much they’ll lend.
Down Payment
Most lenders want at least 20% down to avoid private mortgage insurance (PMI). However, FHA loans allow as little as 3.5% down, and VA and USDA loans may require zero down payment for qualifying borrowers. A higher down payment means a smaller loan, lower monthly payment, and usually a better interest rate.
Interest Rate
Loan Term
Property Taxes & Insurance
30-Year vs. 15-Year Mortgage: Which Is Right for You?
| Mortgage | 30-Year Fixed | 15-Year Fixed |
|---|---|---|
| Monthly Payment* | ~$2,023 | ~$2,785 |
| Total Interest Paid* | ~$389,000 | ~$181,000 |
| Total Cost* | ~$709,000 | ~$501,000 |
| Best For | Lower monthly burden | Saving on interest |
| Build Equity | Slower | Faster |
| Flexibility | Higher | Lower |
The right loan term depends on your goals. If cash flow is your priority for example, if you’re a first-time buyer stretching your budget a 30-year loan gives you breathing room. If you’re later in your career, have stable income, and want to minimize total interest paid, the 15-year loan is a powerful wealth-building tool. Use the calculator above to compare both scenarios with your actual numbers.
Mortgage Calculator: Frequently Asked Questions
How do I calculate my monthly mortgage payment?
Your monthly mortgage payment is calculated using the loan amount, interest rate, and loan term. The formula is: M = P[r(1+r)^n] / [(1+r)^n – 1], where P is the loan amount, r is the monthly interest rate (annual rate ÷ 12), and n is the total number of payments. Our calculator does this math automatically just enter your numbers and click Calculate.
What is a good mortgage interest rate right now?
As of 2026, a competitive 30-year fixed mortgage rate is generally in the 6.0%–7.0% range for well-qualified borrowers. Rates change daily based on Federal Reserve policy, bond markets, and economic data. Your personal rate depends on your credit score, down payment, loan type, and lender. Generally, a credit score above 740 and a down payment of 20% or more will get you the best available rates.
How much house can I afford?
A common guideline is that your monthly mortgage payment (including taxes and insurance) should not exceed 28% of your gross monthly income. Another rule is that your total monthly debt payments including mortgage, car loans, student loans, and credit cards should stay below 43% of gross income (this is called the back-end DTI ratio that lenders use). Use our calculator to test different home prices until your monthly payment fits comfortably within these ranges.
What is the mortgage payment on a $400,000 house?
With a 20% down payment ($80,000), a $320,000 loan at 6.5% for 30 years results in a principal and interest payment of approximately $2,023 per month. Adding property taxes, insurance, and any HOA fees could push the total monthly cost to $2,500–$3,000 depending on your location.
What is the mortgage payment on a $300,000 house?
With a 20% down payment ($60,000), a $240,000 loan at 6.5% for 30 years results in a P&I payment of approximately $1,517 per month. Use the calculator above to adjust for your exact down payment, rate, and term.
What is the mortgage payment on a $500,000 house?
With a 20% down payment ($100,000), a $400,000 loan at 6.5% for 30 years results in a P&I payment of approximately $2,528 per month. Taxes and insurance could add $500–$1,000 or more per month depending on the state and property type.
How much is a mortgage payment per month for a $200,000 house?
With a 20% down payment ($40,000), a $160,000 loan at 6.5% for 30 years is approximately $1,011 per month in principal and interest.
How much do I need to make to afford a $400,000 house?
Using the 28% rule, you’d want your monthly housing costs to be under 28% of gross income. If the total monthly payment (PITI) on a $400,000 home is approximately $2,600/month, you’d want a gross monthly income of at least $9,300, or roughly $111,000/year. This is a guideline your lender will look at your full financial picture.
How is mortgage interest calculated?
Mortgage interest is calculated monthly on your remaining loan balance. In the first month, you pay interest on the full loan amount. Each month, as you reduce the principal, the interest portion shrinks slightly and more of your payment goes toward the balance. This is why making extra payments early in the loan saves the most interest over time.
What happens if I make extra payments on my mortgage?
Every extra dollar you pay toward principal directly reduces your loan balance, which reduces future interest charges. Even one extra payment per year on a 30-year mortgage can shorten your payoff by 4–5 years and save tens of thousands in interest. Many lenders allow extra principal payments without penalty always confirm with your servicer.
What credit score do I need for a mortgage?
Most conventional loans require a minimum credit score of 620, though you’ll get the best rates above 740. FHA loans accept scores as low as 580 (with 3.5% down) or even 500 (with 10% down). VA loans don’t set an official minimum, though lenders typically want 620+. The higher your score, the lower your rate which makes a significant difference over a 30-year loan.
Should I get a fixed or adjustable-rate mortgage?
A fixed-rate mortgage (FRM) keeps the same interest rate for the entire loan term, making budgeting simple and predictable. An adjustable-rate mortgage (ARM) starts with a lower rate that adjusts periodically based on market indices. ARMs can save money in the short term but carry the risk of higher payments later. If you plan to stay in the home long-term, a fixed rate usually makes more sense. If you plan to sell or refinance within 5–7 years, an ARM may offer savings.
What is PMI and how do I avoid it?
Private Mortgage Insurance (PMI) is required by most lenders when your down payment is less than 20% of the home’s purchase price. It protects the lender not you if you default. PMI typically costs 0.3%–1.9% of the loan amount annually. You can avoid PMI by putting 20% or more down, by using a piggyback loan (80/10/10), or by waiting until your loan-to-value ratio drops to 80% and requesting its removal.
What is an amortization schedule?
An amortization schedule is a complete table of every loan payment from start to finish, showing how much goes to principal and how much to interest each month or year. Early in the loan, most of each payment is interest. Later, the balance shifts toward principal. Our mortgage calculator generates a full yearly amortization schedule automatically after you calculate.
Is it better to put more money down on a mortgage?
A larger down payment reduces your loan amount, lowers your monthly payment, helps you avoid PMI, and often qualifies you for a better interest rate. However, it also ties up cash that could be invested or kept as an emergency fund. Most financial advisors suggest 20% down if you can afford it, but 10% or even 3.5% can make sense depending on your situation. Use our calculator to see how different down payment amounts affect your monthly payment.
What does it mean to refinance a mortgage?
Refinancing means replacing your existing mortgage with a new loan typically to secure a lower interest rate, reduce your monthly payment, shorten your loan term, or access equity in your home (cash-out refinance). Refinancing typically involves closing costs of 2%–5% of the loan amount. The “break-even” point when savings outweigh those costs is usually 18–36 months. It’s most beneficial when rates drop at least 0.5%–1% below your current rate.
Quick Answers: Mortgage Calculator at a Glance
How do you calculate a monthly mortgage payment?
What is the monthly payment on a $400,000 mortgage?
On a $400,000 loan at 6.5% for 30 years, the monthly payment is approximately $2,528. On a $400,000 loan at 6.5% for 15 years, the monthly payment is approximately $3,487.
What is the monthly payment on a $300,000 mortgage?
How much income do you need for a $400,000 mortgage?
Q: What is a good mortgage interest rate right now?
What is the monthly payment on a $500,000 mortgage?
A Brief History of the American Mortgage
The modern American mortgage is a relatively recent invention. In the early 1900s, buying a home required a massive down payment often 50% followed by a short-term loan of just 3 to 5 years, ending in a large balloon payment. Fewer than half of Americans could afford to own a home under these conditions.
The Great Depression of the 1930s caused widespread mortgage defaults and foreclosures, wiping out homeownership for millions of families. In response, Congress created the Federal Housing Administration (FHA) in 1934 and Fannie Mae in 1938 to bring stability and liquidity to the mortgage market. These agencies helped introduce the 30-year fixed-rate mortgage with standardized down payment requirements the structure most Americans still use today.
After World War II, the GI Bill allowed millions of returning veterans to access low-cost, zero-down VA home loans, sparking one of the greatest homeownership booms in history and building the American suburbs.
By 2001, the national homeownership rate had reached a record 68.1%. The 2008 financial crisis fueled by poorly underwritten subprime mortgages temporarily reversed these gains, but the market stabilized by 2012, and homeownership has remained a cornerstone of the American wealth-building strategy ever since.
Today, understanding how your mortgage works including how your payment is calculated, how amortization affects your equity, and how refinancing can save you money is one of the most valuable financial skills a homeowner can have.
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