Mortgage Calculator
Estimate your monthly mortgage payment in seconds. Adjust home price, down payment, interest rate, and loan term to find what fits your budget.
Monthly Payment
$2,486
Principal & Interest + Tax + Insurance
Payment Breakdown
Equity Built vs Remaining Balance Over Time
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How to Use This Mortgage Calculator
Enter your home price, down payment percentage, expected interest rate, and loan term. You can also add estimated monthly property tax and insurance to see your true all-in monthly cost. The calculator updates instantly as you adjust each slider.
What Is Included in the Monthly Payment?
- Principal — the portion that reduces your loan balance
- Interest — the cost of borrowing, based on your rate and remaining balance
- Property Tax — typically 0.5%–2% of home value per year, divided monthly
- Home Insurance — usually $100–$200/month depending on location and home value
How Is the Monthly Payment Calculated?
The principal and interest portion uses the standard amortization formula:
M = P × [r(1+r)ⁿ] / [(1+r)ⁿ − 1]
Where P = loan amount, r = monthly interest rate (annual rate ÷ 12), and n = total number of payments (years × 12).
How Much Down Payment Do You Need?
- 3% — minimum for conventional loans (requires PMI)
- 3.5% — minimum for FHA loans
- 10% — reduces PMI costs significantly
- 20% — eliminates PMI entirely, saves $100–$300/month
Current Mortgage Rates (2026)
Average 30-year fixed mortgage rates in 2026 range from 6.5%–7.5% depending on your credit score, lender, and loan type. A higher credit score (740+) typically qualifies you for the lowest available rates.
15-Year vs 30-Year Mortgage
| Factor | 15-Year | 30-Year |
|---|---|---|
| Monthly payment | Higher | Lower |
| Total interest paid | ~50% less | More |
| Interest rate | ~0.5–0.75% lower | Standard |
| Best for | High income, wants to pay off fast | Lower monthly costs, flexibility |
Tips to Lower Your Monthly Payment
- Improve your credit score before applying — every 20-point increase can lower your rate
- Make a larger down payment to reduce the principal and eliminate PMI
- Shop at least 3 lenders — rates can vary by 0.5% or more
- Consider a longer term (30 vs 15 years) to lower monthly cash requirements
- Buy points to permanently lower your interest rate
Mortgage Payment by Home Price (2026 Rates)
Using a 20% down payment and 7% interest rate on a 30-year fixed mortgage:
| Home Price | Down Payment (20%) | Loan Amount | Monthly P&I | Est. All-In* |
|---|---|---|---|---|
| $200,000 | $40,000 | $160,000 | $1,065 | ~$1,465 |
| $300,000 | $60,000 | $240,000 | $1,597 | ~$2,197 |
| $400,000 | $80,000 | $320,000 | $2,129 | ~$2,929 |
| $500,000 | $100,000 | $400,000 | $2,661 | ~$3,661 |
| $600,000 | $120,000 | $480,000 | $3,194 | ~$4,394 |
| $750,000 | $150,000 | $600,000 | $3,992 | ~$5,492 |
*All-in estimate includes property tax (1.2%/yr) and insurance (0.5%/yr).
Mortgage Payment on a $300,000 House
With 20% down ($60,000), your loan is $240,000. At 7% for 30 years, the monthly principal and interest is $1,597. Add ~$300/month for property tax and ~$125/month for insurance, and your all-in payment is roughly $2,022/month.
Mortgage Payment on a $400,000 House
With 20% down ($80,000), your loan is $320,000. At 7% for 30 years, the monthly principal and interest is $2,129. With property tax (~$400/month) and insurance (~$167/month), your all-in payment is roughly $2,696/month.
Mortgage Payment on a $500,000 House
With 20% down ($100,000), your loan is $400,000. At 7% for 30 years, the monthly principal and interest is $2,661. With property tax (~$500/month) and insurance (~$208/month), your all-in payment is roughly $3,369/month.
Frequently Asked Questions
How much is a monthly mortgage payment on a $400,000 house?
With 20% down ($80,000), a $320,000 loan at 7% for 30 years = approximately $2,129/month P&I. Add property tax (~$400/month) and insurance (~$167/month) for an all-in payment of roughly $2,696/month.
What credit score do I need to get a mortgage?
Most conventional loans require a minimum of 620. FHA loans accept 580+. For the best rates, aim for 740 or higher.
Is it better to get a 15-year or 30-year mortgage?
A 15-year saves ~50% in total interest but has higher monthly payments. A 30-year gives lower monthly costs and more flexibility. If you can afford the higher 15-year payment, you build equity and wealth faster.