Mortgage Calculator
Estimate your monthly mortgage payment, including property tax, homeowners insurance, PMI and HOA dues. See how much interest you will pay and how your loan balance falls year by year.
Estimate for a fixed-rate loan. Taxes, insurance and PMI can change over time, and your lender's figures may differ.
Amortization schedule, year by year
How much of your payments goes to principal and interest each year, and what you still owe, using the numbers above.
| Year | Principal | Interest | Balance left |
|---|
How a mortgage payment is calculated
The core of every fixed-rate mortgage payment is principal and interest. Lenders use the standard amortization formula, which spreads the loan into equal monthly payments that pay off the balance exactly by the end of the term.
Most lenders then add one-twelfth of your yearly property tax and homeowners insurance to the payment and hold the money in an escrow account to pay those bills for you. Together these four parts are often called PITI: principal, interest, taxes and insurance. If you put down less than 20% on a conventional loan, private mortgage insurance (PMI) is usually added too, and any HOA dues are an extra monthly cost.
Worked example: a $400,000 home with 20% down
Say you buy a $400,000 home, put $80,000 down and take a 30-year fixed loan at 7% for the remaining $320,000. Property tax is $4,400 a year and insurance is $1,800 a year.
- Loan amount: $400,000 − $80,000$320,000
- Monthly rate: 7% ÷ 120.5833%
- Principal and interest (360 payments)$2,128.97
- Property tax: $4,400 ÷ 12$366.67
- Home insurance: $1,800 ÷ 12$150.00
- Total monthly payment$2,645.64
In the first month, $1,866.67 of the $2,128.97 goes to interest and only $262.30 to principal. That balance shifts over time: in the first year you pay about $22,297 in interest and $3,251 in principal. Over the full 30 years, interest adds up to about $446,400, more than the amount borrowed.
Adding just $100 a month toward principal changes that a lot. The loan would be paid off 47 months sooner and save about $70,200 in interest.
Monthly payment per $100,000 borrowed
Principal and interest for every $100,000 of loan at common rates. Multiply by your loan amount in hundreds of thousands for a quick estimate.
| Interest rate | 30-year loan | 15-year loan |
|---|---|---|
| 5.5% | $567.79 | $817.08 |
| 6.0% | $599.55 | $843.86 |
| 6.5% | $632.07 | $871.11 |
| 7.0% | $665.30 | $898.83 |
| 7.5% | $699.21 | $927.01 |
| 8.0% | $733.76 | $955.65 |
For reference, Freddie Mac's weekly survey on September 24, 2026 put the average 30-year fixed rate at 7.03% and the 15-year rate at 6.42%. Your own rate depends on your credit score, down payment, loan type and lender, so compare several quotes.
15-year vs. 30-year mortgage
On the same $320,000 loan, a 15-year mortgage at 6.4% costs $2,769.98 a month in principal and interest, about $641 more than the 30-year loan at 7%. In exchange, total interest drops from about $446,400 to about $178,600, a saving of roughly $267,800, and the home is paid off in half the time.
The 30-year loan keeps the required payment lower, which leaves room for savings, emergencies and other goals. Many borrowers choose a 30-year loan and make extra principal payments when they can, which captures some of the savings without locking in the higher payment.
Ways to lower your mortgage payment
- Improve your credit before you apply. A higher score usually qualifies for a lower rate, and even half a point makes a real difference over 30 years.
- Put 20% down if you can. A bigger down payment lowers the loan amount and avoids PMI on a conventional loan.
- Compare lenders. Rates and fees vary. Getting several Loan Estimates on the same day makes them easy to compare.
- Shop for homeowners insurance. Premiums vary widely between insurers for the same coverage.
- Check property tax exemptions. Many states and counties offer a homestead exemption for a primary residence.
- Watch the 10-year Treasury yield. Mortgage rates tend to follow it. Our guide to rising bond yields explains why rates climbed in 2026.
- Refinance when rates fall. Use the Refinance Break-Even Calculator to see how long it takes for closing costs to pay off.
Frequently asked questions
How is a monthly mortgage payment calculated?
The principal and interest part uses the loan amount, the monthly interest rate and the number of monthly payments: M = P × r ÷ (1 − (1 + r)^−n). Property tax, homeowners insurance, mortgage insurance and HOA dues are then added to get the full monthly housing payment.
What is included in a mortgage payment?
A typical payment includes principal, interest, property taxes and homeowners insurance, often called PITI. If your down payment is under 20% on a conventional loan, private mortgage insurance is usually added, and HOA dues may be paid separately.
How much is the payment on a $320,000 mortgage?
At a 7% fixed rate over 30 years, principal and interest on a $320,000 loan is $2,128.97 a month. Property tax, insurance and any mortgage insurance or HOA dues are extra.
Is a 15-year or 30-year mortgage better?
A 15-year loan usually has a lower rate and costs far less interest, but the monthly payment is much higher. A 30-year loan has a lower payment and more flexibility. The better choice depends on how comfortably the payment fits your budget.
When does PMI go away?
On most conventional loans, you can ask to cancel private mortgage insurance once your balance reaches 80% of the home's original value, and lenders must end it automatically when the balance is scheduled to reach 78%, as long as you are current on payments.
This calculator is for educational purposes only and is not financial advice. It estimates a fixed-rate loan. Actual rates, taxes, insurance, PMI and closing costs depend on your lender, location and credit. For official loan terms, review the Loan Estimate your lender provides.