Free Mortgage Calculator — Monthly Payment with Taxes & Insurance 2026
Mortgage Calculator
Calculate your monthly payment including principal, interest, taxes & insurance
You found a house at $400,000. The listing says it fits your budget. But the number that actually matters — your real monthly payment with property tax, insurance, PMI, and HOA — is nowhere on the listing. This calculator gives you that number in seconds. Enter the home price, your down payment, loan term, and interest rate. Add your local tax and insurance estimates. See exactly what you’ll owe every month — not just principal and interest, but the full payment.
How to Use This Mortgage Calculator
Home Price and Down Payment
How Down Payment Percentage Affects Your Loan
Enter the home price using the slider or type it directly. Then set your down payment — either as a dollar amount or a percentage. The calculator updates both fields automatically.
Your down payment percentage matters beyond just the loan size. Drop below 20% and PMI kicks in — private mortgage insurance that protects the lender, not you. On a $400,000 home, that’s typically $100–$200 extra per month until your equity reaches 20%.
The loan amount shown in your results is simply: Home Price minus Down Payment. At $400,000 with 20% down ($80,000), your loan amount is $320,000.
Down Payment and Total Interest Over the Life of the Loan
A larger down payment does two things: it reduces your monthly payment and dramatically cuts the total interest you pay over 30 years. On a $400,000 home at 6.5%:
| Down Payment | Loan Amount | Monthly P&I | Total Interest |
|---|---|---|---|
| 5% ($20,000) | $380,000 | $2,403 | $485,000 |
| 10% ($40,000) | $360,000 | $2,276 | $459,000 |
| 20% ($80,000) | $320,000 | $2,023 | $408,000 |
That 15% difference in down payment saves you $77,000 in total interest — and eliminates PMI immediately.
Loan Term — 30, 20, 15, or 10 Year
30-Year vs 15-Year — Real Numbers Compared
Select your loan term using the four buttons: 30yr, 20yr, 15yr, or 10yr. Most buyers choose 30 years for the lower monthly payment. But the 15-year option builds equity faster and saves a significant amount in total interest.
On a $320,000 loan at 6.5%:
| Loan Term | Monthly P&I | Total Interest | Payoff Year |
|---|---|---|---|
| 30 years | $2,023 | $408,142 | 2056 |
| 20 years | $2,390 | $253,604 | 2046 |
| 15 years | $2,790 | $182,200 | 2041 |
| 10 years | $3,612 | $113,418 | 2036 |
The 30-year payment is $767 lower than the 15-year — but costs $225,942 more in interest over the life of the loan. The right term depends on your cash flow, other financial goals, and how long you plan to stay in the home. Use our Affordability Calculator to check which term fits your income before committing.
Interest Rate (APR)
Use the slider or type your rate directly. The tool uses APR — Annual Percentage Rate — which includes the base interest rate. For 2026, the national average 30-year fixed rate is approximately 6.3–6.5%. Rates vary by lender, credit score, and loan type.
A half-point difference in rate has a bigger impact than most buyers expect. On a $320,000 loan over 30 years:
- At 6.0%: $1,919/month — $371,000 total interest
- At 6.5%: $2,023/month — $408,000 total interest
- At 7.0%: $2,129/month — $446,000 total interest
That 0.5% difference equals $104/month and $37,000 over the loan life. FHA and VA loans often carry different rates — use our FHA Mortgage Calculator or VA Mortgage Calculator for those specific loan types.
Optional Extras — Taxes, Insurance, PMI, HOA
Property Tax
Enter your estimated annual property tax. The tool shows an average of 1.1% of home value — a national average. Your actual rate depends on your county and state.
Property tax rates vary widely:
| State | Avg Effective Tax Rate | On $400K Home (Annual) |
|---|---|---|
| New Jersey | 2.23% | $8,920 |
| Illinois | 2.08% | $8,320 |
| Texas | 1.68% | $6,720 |
| California | 0.76% | $3,040 |
| Hawaii | 0.28% | $1,120 |
Check your county assessor’s website for the exact rate. Use our Property Tax Calculator to estimate your annual bill based on your specific location and assessed value.
Home Insurance
The tool defaults to $1,500/year — within the national average range of $1,200–$2,000. Coastal properties, older homes, and high-value homes typically cost more to insure. Your lender will require proof of homeowners insurance before closing.
PMI — When It Applies and How to Eliminate It
PMI (Private Mortgage Insurance) is required when your down payment is less than 20% of the home price. The tool labels this field clearly: “required if down < 20%.”
Typical PMI cost: 0.5%–1% of the loan amount annually. On a $320,000 loan, that’s $1,600–$3,200/year, or $133–$267 per month added to your payment.
PMI is not permanent. Once your loan balance drops to 80% of the original home value — either through payments or appreciation — you can request cancellation. At 78%, lenders are legally required to cancel it automatically under the Homeowners Protection Act.
HOA Fees
Enter monthly HOA fees if the property is in a homeowners association. Condos and planned communities typically have HOA fees ranging from $100 to $500+/month. The calculator adds this directly to your monthly total — it doesn’t affect your loan calculation but shows your true monthly housing cost.
Understanding Your Results
Monthly Payment Breakdown — P&I, Tax, and Insurance
The results panel on the right shows your monthly payment broken into three colour-coded components:
Principal & Interest (P&I): The core loan repayment. This is the amount that goes to your lender every month — part pays down your balance (principal), part covers the cost of borrowing (interest). Early in the loan, the vast majority is interest.
Property Tax: Your annual property tax divided by 12. Most lenders collect this monthly into an escrow account and pay the tax bill on your behalf.
Insurance: Your annual homeowners insurance divided by 12, also typically held in escrow.
The payment breakdown shows at a glance what portion of your housing cost is actually building equity versus going to taxes, insurance, and interest.
Total Interest vs Total Cost
Below the monthly breakdown, four key figures appear:
- Loan Amount: What you’re actually borrowing after your down payment
- Total Interest: The cumulative interest you’ll pay over the full loan term — often more than the home’s purchase price on a 30-year loan
- Total Cost: Loan amount plus total interest — your complete repayment obligation
- Payoff Date: The month and year your mortgage is paid off at the current settings
Most calculators — including Google’s built-in tool and many bank calculators — show only the monthly P&I payment. They hide the total interest figure because it’s confronting. At 6.5% on a $320,000 loan, you pay $408,142 in interest alone over 30 years — more than the original loan. Seeing that number clearly is the point.
Payoff Date
The payoff date updates in real time as you adjust the loan term and rate. Change from a 30-year to a 15-year term and watch the payoff date move from 2056 to 2041 — 15 years back. Use the “Add extra monthly payment” button to see how additional principal payments accelerate your payoff date. For detailed payoff scenarios, our Mortgage Payoff Calculator shows month-by-month savings with any extra payment amount.
Mortgage Payment Formula — How It’s Calculated
The Standard Amortization Formula
Every fixed-rate mortgage uses the same amortization formula:
M = P × [r(1+r)^n] / [(1+r)^n - 1]
M = Monthly payment
P = Principal (loan amount)
r = Monthly interest rate (annual rate ÷ 12)
n = Total number of payments (years × 12)
Example — $320,000 loan, 6.5% rate, 30 years:
- r = 6.5% ÷ 12 = 0.5417% per month (0.005417)
- n = 30 × 12 = 360 payments
- M = $320,000 × [0.005417 × (1.005417)^360] / [(1.005417)^360 – 1]
- M = $2,023/month
Why Your Payment Stays Fixed But Interest Portion Changes
With a fixed-rate mortgage, your P&I payment never changes. But what that payment covers shifts dramatically over time. In month one on a $320,000 loan at 6.5%, approximately $1,733 goes to interest and only $290 goes to principal. By year 25, the split reverses — most of each payment reduces your balance.
This is why extra principal payments made early in a loan have an outsized impact. Each dollar of principal you pay down in year 3 eliminates every dollar of interest that would have accrued on it for the remaining 27 years. Use the “View Amortization Schedule” button in the tool to see this split for every single payment. For a full extra payment analysis, our Mortgage Amortization Calculator shows the complete schedule with optional extra payment scenarios.
How Much House Can You Afford?
The 28% Rule
Lenders use the 28% rule as a baseline: your monthly mortgage payment (including taxes and insurance — the full PITI) should not exceed 28% of your gross monthly income.
At a $120,000 household income:
- Gross monthly income: $10,000
- Maximum PITI (28%): $2,800/month
- Subtract tax ($367) and insurance ($125): leaves $2,308 for P&I
- At 6.5% over 30 years, that supports a loan of roughly $365,000
For a full affordability calculation based on your income, debts, and down payment, use our Affordability Calculator.
Debt-to-Income Ratio (DTI)
Beyond the 28% housing ratio, lenders also apply a total DTI limit — typically 43% for conventional loans, sometimes 50% for FHA loans. This includes your mortgage payment plus all other monthly debt obligations: car loans, student loans, credit card minimums, personal loans.
Example:
- Gross monthly income: $10,000
- Car payment: $450
- Student loan: $300
- Total existing debt: $750
- DTI limit at 43%: $4,300/month total
- Available for mortgage: $4,300 − $750 = $3,550/month maximum PITI
Your DTI directly impacts your loan approval and the interest rate you qualify for. A DTI above 43% is a red flag for most conventional lenders.
Down Payment Impact on Monthly Payment
Every additional dollar of down payment reduces your loan balance and — once you cross the 20% threshold — eliminates PMI. Here is the practical impact on a $400,000 home at 6.5%:
| Down % | Down $ | PMI/mo | P&I/mo | Tax+Ins | Total/mo |
|---|---|---|---|---|---|
| 5% | $20,000 | $158 | $2,403 | $492 | $3,053 |
| 10% | $40,000 | $133 | $2,276 | $492 | $2,901 |
| 20% | $80,000 | $0 | $2,023 | $492 | $2,515 |
| 25% | $100,000 | $0 | $1,896 | $492 | $2,388 |
Going from 10% to 20% down saves $386/month — $4,632/year — and eliminates PMI immediately.
PITI — Why P&I Only Calculators Mislead You
What Competitors Miss — P&I Only vs Full PITI
Most basic mortgage calculators — including Google’s built-in calculator and many bank websites — show only principal and interest. They present a monthly payment of $2,023 on a $320,000 loan and call it your mortgage payment. It isn’t.
Your actual monthly housing cost on that same loan, including all required expenses, looks like this:
Principal & Interest: $2,023
Property Tax (1.1%/yr): $293
Home Insurance: $125
PMI (if < 20% down): $133
HOA (if applicable): $200
─────────────────────────────────
True Monthly Cost: $2,774
That gap — $751/month — is what catches first-time buyers off guard at closing. Budgeting on P&I alone and discovering the real payment after approval is one of the most common and costly mortgage planning mistakes.
This calculator shows the full PITI from the start. Adjust each line to match your specific situation.
Average Property Tax Rates by State
Property tax is the most variable component of your monthly payment. The same $400,000 home costs $267/month in Texas taxes and $101/month in California — a $166/month difference that changes your budget entirely.
For your specific county’s rate, use our Property Tax Calculator which calculates based on assessed value and local mill rates.
PMI Cost and How to Eliminate It
PMI adds $100–$300/month to your payment and provides zero benefit to you as the borrower. There are four ways to eliminate or avoid it:
1. Put 20% down: Avoid PMI entirely from day one.
2. Request cancellation at 20% equity: Once your loan balance reaches 80% of the original purchase price through regular payments, submit a written request to your lender.
3. Automatic cancellation at 78%: Lenders must cancel PMI automatically when your balance drops to 78% of the original home value under the Homeowners Protection Act.
4. Appreciation-based cancellation: If your home value increases, you may reach 80% LTV sooner than scheduled. You’ll need a new appraisal and a formal request.
On a $320,000 loan at 6.5%, your balance reaches 80% of original value (based on original purchase price, not current market value) at around year 11 of a 30-year mortgage through normal payments alone.
30-Year vs 15-Year Mortgage — Which Is Right for You?
Side-by-Side Comparison With Real Numbers
The choice between a 30-year and 15-year mortgage is one of the most consequential financial decisions in the home buying process. The lower payment of a 30-year term is attractive — but the total cost difference is substantial.
On a $320,000 loan at 6.5% (30yr) vs 5.9% (15yr — rates are typically lower):
| 30-Year | 15-Year | |
|---|---|---|
| Monthly P&I | $2,023 | $2,689 |
| Monthly difference | — | +$666 |
| Total interest | $408,142 | $164,020 |
| Interest saved | — | $244,122 |
| Payoff year | 2056 | 2041 |
The 15-year costs $666 more per month but saves $244,122 in interest. If you invested that $666/month difference in an index fund at 7% average return over 15 years, you’d accumulate approximately $214,000 — nearly enough to offset the interest savings. Neither choice is universally better; it depends entirely on your cash flow, investment discipline, and financial goals.
Which Loan Term Is Right for You?
Choose 30-year if:
- You need the lower payment to qualify for the loan
- You have high-interest debt to pay off first
- You want flexibility — you can always pay extra when cash flow allows
- Your monthly budget is tight
Choose 15-year if:
- You can comfortably afford the higher payment
- You want to be mortgage-free before retirement
- You value guaranteed debt elimination over potential investment returns
- You’re refinancing an existing mortgage with years remaining
For a side-by-side refinance comparison, our Mortgage Refinance Calculator shows whether switching terms makes financial sense at current rates.
Frequently Asked Questions
What is a good mortgage rate in 2026?
As of April 2026, the national average 30-year fixed mortgage rate is approximately 6.3–6.5%. A rate below the national average is considered good for your credit profile. Rates vary by lender, credit score, loan type, and down payment. FHA loans typically carry slightly lower rates but add mortgage insurance premiums. VA loans often have the lowest rates available for eligible veterans — check our VA Mortgage Calculator for VA-specific payment estimates.
How much is a monthly mortgage payment on a $400,000 house?
At 6.5% with 20% down ($80,000), your principal and interest payment is approximately $2,023/month on a 30-year loan. Add property tax (~$367/month at 1.1%), homeowners insurance (~$125/month), and your total PITI is approximately $2,515/month. With 10% down, add PMI of roughly $133/month, bringing the total to $2,648/month.
How do I calculate my mortgage payment manually?
Use the formula: M = P × [r(1+r)^n] / [(1+r)^n − 1], where P is your loan amount, r is your monthly interest rate (annual rate ÷ 12), and n is the total number of payments (years × 12). For a $320,000 loan at 6.5% over 30 years: r = 0.005417, n = 360. This gives a monthly P&I of $2,023. The calculator above handles this instantly — and adds taxes, insurance, and PMI for your true monthly cost.
What is included in a monthly mortgage payment?
A full mortgage payment — known as PITI — includes four components: Principal (reduces your loan balance), Interest (cost of borrowing), Taxes (property tax, collected monthly into escrow), and Insurance (homeowners insurance, also escrowed). If your down payment is below 20%, PMI is also included. HOA fees are separate from your mortgage but are a required monthly cost for many properties.
Does this calculator include PMI?
Yes. Enter your PMI cost in the Optional Extras section. The field is labeled “PMI (yearly) — required if down < 20%.” If you’re putting down less than 20%, estimate your annual PMI at 0.5%–1% of the loan amount. On a $320,000 loan, that’s $1,600–$3,200/year ($133–$267/month). The tool adds it to your monthly payment total automatically.
What is HOA and should I include it?
HOA (Homeowners Association) fees are monthly charges for properties in managed communities — condominiums, townhouses, and many planned neighbourhoods. They cover shared amenities, exterior maintenance, and community management. Fees range from $100 to $500+/month depending on the community. Include HOA fees in the calculator to see your true monthly housing cost, even though HOA is separate from your mortgage payment to your lender.
How much down payment do I need?
The minimum down payment depends on loan type. Conventional loans require as little as 3% down (but PMI applies until 20% equity). FHA loans require 3.5% with a 580+ credit score. VA loans require 0% down for eligible veterans. USDA loans also offer 0% down for qualifying rural properties. Putting 20% down eliminates PMI and often qualifies you for better interest rates. Use our Affordability Calculator to determine how much home you can afford based on your savings and income.
What is the difference between interest rate and APR?
The interest rate is the base cost of borrowing — the percentage used to calculate your monthly payment. APR (Annual Percentage Rate) includes the interest rate plus lender fees, points, and certain closing costs, expressed as a yearly rate. APR is always equal to or higher than the interest rate. This calculator uses APR as your input, which gives a more accurate payment estimate. When comparing lenders, always compare APRs — not just interest rates — to see the true cost of each loan offer.
Related Calculators
Once you know your monthly payment, the next step is checking whether you can actually afford it. Our Affordability Calculator calculates your maximum home price based on your income, debts, and down payment using both the 28% housing ratio and 43% DTI limit.
If you’re exploring ways to pay off your mortgage faster, our Mortgage Payoff Calculator shows exactly how many months and how much interest you save by adding any extra amount to your monthly payment.
For a full month-by-month breakdown of every payment split between principal and interest, the Mortgage Amortization Calculator shows the complete schedule for the life of your loan.
If you already own a home and are considering refinancing at current rates, our Mortgage Refinance Calculator calculates your break-even point and total savings.
For reverse mortgage estimates, see our Reverse Mortgage Calculator. For home equity line of credit estimates, use the HELOC Calculator. For property tax estimates by county and state, the Property Tax Calculator gives location-specific figures.