Mortgage Payment Calculator — What Will This House Really Cost You?
See your exact monthly payment, total interest over the loan life, and true loan cost — before you make an offer
Reviewed for accuracy June 21, 2026 by Gary S.
Optional — unlocks affordability analysis
Enter gross income to check affordability
At the 28% front-end guideline, this payment requires ~$88,951/year in gross income. The monthly shown is principal and interest only — add ~$31 for taxes, insurance.
- ›A 15-year term saves $237,477 in total interest but raises the payment by $756/month
- ›Total interest ($427,185) exceeds the loan itself ($320,000) — every extra principal payment saves its full remaining interest
⚡ Total interest ($427,185) exceeds the loan principal — consider extra principal payments or a shorter term
Check your full price range with the Home Affordability Calculator →Share on r/personalfinance, Twitter/X, or LinkedIn 📊
How to use Mortgage Calculator
Free mortgage calculator. Enter home price, down payment, rate, and term to estimate monthly payments, total interest, and full loan cost. Compare 15 vs 30-year loans instantly.
A mortgage calculator helps you estimate your monthly home loan payment before you ever speak to a lender. Enter your home price, down payment, interest rate, and loan term to instantly see your principal-and-interest payment, total interest paid over the life of the loan, and total cost of the home. Use it to compare 15-year vs 30-year loans, test different down payment amounts, or see how much house your budget supports.
How to use this Mortgage Calculator
- 1Enter the home price — the full purchase price before your down payment.
- 2Enter your down payment as a dollar amount or percentage. Most conventional loans require at least 3–20%.
- 3Enter the annual interest rate. Check current rates at your bank, credit union, and online lenders — even 0.25% matters over 30 years.
- 4Select the loan term: 30 years is the most common; 15 years costs less total interest but has a higher monthly payment.
- 5The calculator shows your monthly principal-and-interest payment, total interest paid, and total amount paid over the loan life.
Monthly mortgage payment formula explained
Your monthly mortgage payment is calculated using the standard amortization formula. It ensures the loan is fully paid off — with interest — by the end of the term, with equal payments every month.
| Variable | Meaning |
|---|---|
| M | Monthly payment |
| P | Principal (loan amount = home price − down payment) |
| r | Monthly interest rate (annual rate ÷ 12) |
| n | Total number of payments (years × 12) |
Home loan calculator example: $400,000 home with 20% down
- 01Home price: $400,000. Down payment: $80,000 (20%). Loan amount: $320,000.
- 02Interest rate: 7.0% annual → monthly rate r = 0.07 ÷ 12 = 0.005833.
- 03Loan term: 30 years → n = 30 × 12 = 360 payments.
- 04Monthly payment = $320,000 × [0.005833 × (1.005833)^360] / [(1.005833)^360 − 1]
- 05Monthly payment = $320,000 × [0.005833 × 10.936] / [10.936 − 1] = $2,129
Result
Monthly payment: $2,129. Total paid over 30 years: $766,440. Total interest: $446,440.
What affects your monthly mortgage payment?
Interest rate
The single biggest lever. At 7% vs 6%, a $320,000 loan costs $189 more per month — $68,000 more over 30 years.
Loan term
A 15-year loan has a higher monthly payment but roughly half the total interest of a 30-year loan.
Down payment
A larger down payment reduces your loan amount and eliminates PMI (typically required when you put down less than 20%).
Property taxes & insurance
Not included in the formula above, but lenders roll them into your monthly escrow payment. Add 1.5–2% of home value annually as an estimate.
Credit score
A 760+ score typically gets the best available rate. Each 20-point drop below 760 can add 0.1–0.3% to your rate.
Loan type
Conventional, FHA, VA, and jumbo loans all carry different rate adjustments and PMI requirements.
Tips and things to know
- ✓Get rate quotes from at least 3 lenders — banks, credit unions, and online lenders — before accepting any offer.
- ✓A 15-year mortgage at the same rate as a 30-year roughly doubles your monthly payment but cuts total interest by more than half.
- ✓Making one extra mortgage payment per year reduces a 30-year loan by 4–5 years.
- ✓If you put down less than 20%, add PMI costs (0.5–1.5% of loan amount per year) to get your true monthly housing cost.
- ✓This calculator shows principal and interest only. Budget an additional $300–$700/month for taxes, insurance, and maintenance.
Mortgage Calculator — bottom line
The single most important step before house shopping is stress-testing the payment you calculate here against your actual monthly take-home pay — not your gross income. Lenders qualify you on gross income (the standard is 28% for housing costs and 36% for all debt). But you live on take-home pay, which is typically 25–35% less after taxes and benefits. A payment that looks manageable on paper can become a serious cash-flow problem when it lands on a real bank statement. The most common mistake is treating a lender's pre-approval limit as a shopping budget. Pre-approval tells you the maximum the lender will extend — not the maximum you can comfortably afford. A practical guideline: your total housing cost (principal, interest, taxes, insurance, and HOA) should stay below 25–28% of your take-home pay, not your gross salary. Use this calculator to test your target home price, then subtract 10% to find your comfortable ceiling. The second most costly mistake is accepting the first rate offer. On a $350,000 loan at 30 years, the spread between 6.75% and 7.25% costs roughly $110 per month — $39,600 over the loan life. Shop at least three lenders before accepting any rate. Before you move to the offer stage, run three scenarios in this calculator: your target price, a price 10% lower, and a price 10% higher. Identify the down payment level that eliminates PMI (typically 20%). Confirm that the 15-year payment is within reach — if it is, the interest savings are substantial. Then check the Home Affordability Calculator to validate that your income supports the range you're targeting.
Official resources and further reading
Consumer Financial Protection Bureau — Mortgage Resources
The CFPB's official mortgage guide covering rates, loan types, closing costs, and your rights as a borrower.
HUD.gov — Buying a Home
U.S. Department of Housing and Urban Development guidance on the homebuying process, FHA loans, and housing counselors.
Freddie Mac — 30-Year Fixed Rate Mortgage Average
Weekly current mortgage rate survey from Freddie Mac — the most widely cited benchmark for U.S. mortgage rates.
Research
2026 Mortgage Affordability Index
Income required to buy the median home in all 50 states — sortable data table.
Mortgage Calculator by State — All 50 States
Mortgage affordability varies dramatically by state — not just because home prices differ, but because property tax rates range from 0.28% (Hawaii) to over 2.4% (New Jersey), adding thousands of dollars to your annual cost on the same loan. Select your state below for a tailored payment estimate using local median home prices and property tax rates.
| State | Median home price | Property tax rate |
|---|---|---|
| Alabama | $218,000 | 0.40% |
| Alaska | $320,000 | 1.19% |
| Arizona | $365,000 | 0.60% |
| Arkansas | $176,000 | 0.62% |
| California | $750,000 | 0.73% |
| Colorado | $500,000 | 0.52% |
| Connecticut | $385,000 | 1.79% |
| Delaware | $325,000 | 0.57% |
| Florida | $405,000 | 0.89% |
| Georgia | $325,000 | 0.83% |
| Hawaii | $720,000 | 0.27% |
| Idaho | $380,000 | 0.69% |
| Illinois | $255,000 | 2.07% |
| Indiana | $235,000 | 0.75% |
| Iowa | $207,000 | 1.52% |
| Kansas | $218,000 | 1.34% |
| Kentucky | $210,000 | 0.80% |
| Louisiana | $198,000 | 0.55% |
| Maine | $355,000 | 1.09% |
| Maryland | $400,000 | 1.07% |
| Massachusetts | $565,000 | 1.12% |
| Michigan | $235,000 | 1.41% |
| Minnesota | $345,000 | 1.09% |
| Mississippi | $165,000 | 0.66% |
| Missouri | $228,000 | 0.91% |
| Montana | $390,000 | 0.74% |
| Nebraska | $235,000 | 1.63% |
| Nevada | $400,000 | 0.55% |
| New Hampshire | $415,000 | 1.93% |
| New Jersey | $450,000 | 2.23% |
| New Mexico | $292,000 | 0.65% |
| New York | $415,000 | 1.40% |
| North Carolina | $325,000 | 0.77% |
| North Dakota | $262,000 | 0.96% |
| Ohio | $225,000 | 1.59% |
| Oklahoma | $200,000 | 0.91% |
| Oregon | $435,000 | 0.97% |
| Pennsylvania | $282,000 | 1.49% |
| Rhode Island | $425,000 | 1.40% |
| South Carolina | $285,000 | 0.56% |
| South Dakota | $298,000 | 1.14% |
| Tennessee | $335,000 | 0.64% |
| Texas | $315,000 | 1.60% |
| Utah | $485,000 | 0.56% |
| Vermont | $375,000 | 1.82% |
| Virginia | $392,000 | 0.80% |
| Washington | $545,000 | 0.87% |
| West Virginia | $165,000 | 0.58% |
| Wisconsin | $268,000 | 1.68% |
| Wyoming | $308,000 | 0.58% |
Related tools you might need
Frequently asked questions
Principal and interest make up the base payment. Taxes and insurance (escrow) are often added by lenders, making the full PITI payment.
From our guides
All guides →How to Calculate Home Affordability: The 4 Rules Lenders Use
Home affordability is calculated using four ratios: the 28% front-end rule, the 36% back-end rule, the 43% DTI ceiling, and the 3x–5x income rule. Most buyers are constrained by their back-end DTI, not their income. A worked example shows exactly what you can borrow at $90,000 gross income with $500/month in existing debt.
How to Remove PMI: When It Cancels Automatically and How to Request It Early
PMI cancels automatically at 78% LTV but you can request removal at 80%. With appreciation, a new appraisal can eliminate PMI years earlier. At $1,200/year per $200,000 borrowed, removing PMI 5 years early saves $6,000. Here is the exact process, the lender rules, and when refinancing beats an appraisal.
Refinance Break-Even Calculator: How Long Until Refinancing Pays Off?
The refinance break-even is closing costs divided by monthly savings. On $9,000 in closing costs saving $225/month, break-even is 40 months. Refinance only if you stay past that point. This guide walks through the exact calculation, what counts as a closing cost, how a cash-out refi changes the math, and when break-even analysis does not apply.
Next logical step
Major purchase mapped. Now put your remaining surplus to work. See exactly how fast consistent investing compounds toward financial independence.
Compound Interest Calculator
See exactly when your investment crosses $100K, $500K, or $1M — with the formula shown step by step
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