Mortgage Payment Calculator
Estimate your monthly mortgage payment, including property tax and home insurance.
What is included in a monthly mortgage payment?
Most US lenders talk about PITI: principal, interest, taxes and insurance. Principal is the part that repays the amount you borrowed. Interest is the cost of borrowing. Property tax and homeowners insurance are often collected by your lender each month and paid for you from an escrow account.
If you put down less than 20% on a conventional loan, you will often pay private mortgage insurance (PMI) too. Some homes also have HOA or condo fees. The calculator above includes principal, interest, property tax and home insurance, which covers the main costs most buyers face.
The mortgage payment formula
Principal and interest are worked out with a standard formula:
Payment = L x r / (1 - (1 + r)^-n)
L is the loan amount, r is the monthly interest rate (the annual rate divided by 12) and n is the number of monthly payments, which is 360 for a 30-year loan. Tax and insurance are simply the yearly amounts divided by 12.
How the interest rate changes your payment
A small change in rate has a big effect over 30 years. For a 300,000 loan:
| Rate | Monthly principal and interest | Total interest over 30 years |
|---|---|---|
| 5% | 1,610 | 279,767 |
| 6% | 1,799 | 347,515 |
| 7% | 1,996 | 418,527 |
Going from 5% to 7% adds about 386 a month and roughly 138,700 in total interest. That is why it pays to compare lenders and improve your credit profile before you apply.
15-year or 30-year mortgage?
A shorter term means a higher payment but far less interest. At 6% on a 300,000 loan, a 15-year mortgage costs about 2,532 a month and 155,683 in interest. The 30-year version costs about 1,799 a month but 347,515 in interest. The 30-year loan is easier on your monthly budget, while the 15-year loan saves nearly 192,000 over its life. Run both in the calculator to see which fits.
How your down payment affects the payment
A bigger down payment lowers the loan and can remove PMI. On a 400,000 home at 6.5% over 30 years, principal and interest is about:
- 5% down: 2,402 a month
- 10% down: 2,275 a month
- 20% down: 2,023 a month
Use the down payment calculator to see exactly how much cash each percentage needs.
Ways to lower your monthly payment
- Save a larger down payment, and keep your credit score high to qualify for better rates.
- Compare several lenders on the same day, as rates and fees vary.
- Choose a longer term if you need a smaller monthly bill, knowing you will pay more interest overall.
- Pay extra toward principal later. Our mortgage overpayment calculator shows the interest and time you could save.
- Challenge a high property tax assessment if you believe it is wrong.
How much house can you afford?
Lenders look at your debt-to-income ratio, which compares your monthly debts to your gross income. Check yours with the debt-to-income calculator. Many people also set their own limit below what a lender would approve, so the payment leaves room for savings, repairs and everyday life.
Property tax, insurance and HOA fees vary a lot by state and neighbourhood, so replace the example values with real quotes. This calculator gives estimates for information only. It is not a loan offer or financial advice, and your lender will confirm the exact payment.
Frequently asked questions
How much should I put down?
Many buyers put down 20% to avoid private mortgage insurance, but smaller down payments are common.
Does this include closing costs?
No. Closing costs are paid once and are not part of the monthly payment.
More calculators
Last updated October 2026. For information only, not financial advice.