Mortgage Calculator

Calculate your monthly mortgage payment including principal, interest, taxes, insurance, and HOA fees

Data current for 2026 tax year

Quick answer — worked example

What is the monthly payment on a $300,000 house at 6.5%?

With 20% down ($60,000) on a $300,000 home at 6.5% over 30 years, the full monthly payment is $1,867. Principal and interest alone are $1,517; property tax, insurance make up the rest.

This worked example uses the inputs currently set in the calculator below. Change any value and this answer recalculates — it is an illustration, not a universal figure or a rate quote.

A mortgage payment is usually quoted as PITI: principal, interest, taxes and insurance. Principal and interest come from the amortization formula M = P × r / (1 − (1 + r)⁻ⁿ). Taxes and insurance are escrowed monthly, and PMI is added when the down payment is under 20% of the purchase price.

Inputs and results for this worked example
Home price$300,000
Down payment$60,000 (20%)
Loan amount$240,000
Interest rate / term6.5% · 30 years
Principal & interest$1,517/mo
Total monthly payment$1,867/mo
Total interest paid$306,107

Not included: closing costs and lender fees, points or rate buydowns, maintenance and repairs, utilities, HOA dues, and PMI (not applied at this down payment). Extra principal payments and any refinance are not modelled.

Assumes a fixed rate for the full 30-year term, $3,000 in annual property tax, and escrowed taxes and insurance spread evenly across the year. The 6.5% rate is an input you choose, not a rate quote — check current lender rates before budgeting.

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Loan Details

Additional Costs

Your Monthly Payment

$1,866.96

per month

Principal & Interest
$1,516.96
Down Payment
$60,000.00
Loan Amount
$240,000.00
Total Interest
$306,106.77

Monthly Payment Breakdown

Total Amount Paid
$672,106.77

Over 30 years

Quick Calculations

Common mortgage scenarios

Amortization Schedule

YearPrincipalInterestBalance
1$2,683$15,521$237,317
2$2,862$15,341$234,455
3$3,054$15,150$231,401
4$3,258$14,945$228,143
5$3,477$14,727$224,666
6$3,709$14,494$220,957
7$3,958$14,246$216,999
8$4,223$13,981$212,776
9$4,506$13,698$208,270
10$4,808$13,396$203,463
11$5,130$13,074$198,333
12$5,473$12,731$192,860
13$5,840$12,364$187,021
14$6,231$11,973$180,790
15$6,648$11,556$174,142
16$7,093$11,110$167,049
17$7,568$10,635$159,481
18$8,075$10,128$151,405
19$8,616$9,588$142,790
20$9,193$9,011$133,597
21$9,809$8,395$123,788
22$10,465$7,738$113,323
23$11,166$7,037$102,156
24$11,914$6,289$90,242
25$12,712$5,491$77,530
26$13,563$4,640$63,967
27$14,472$3,732$49,495
28$15,441$2,763$34,054
29$16,475$1,728$17,579
30$17,579$625$0

Total Payments Over Time

Understanding Mortgage Payments

A mortgage is a loan secured by real estate property. When you take out a mortgage, you agree to repay the borrowed amount plus interest over a specified period, typically 15 or 30 years. Your monthly payment consists of four main components, often referred to as PITI: Principal, Interest, Taxes, and Insurance. Understanding each component helps you budget accurately and make informed decisions about how much home you can truly afford.

Key Components

Principal & Interest

The principal is the amount you borrowed, while interest is the cost of borrowing that money. Early in your mortgage, most of your payment goes toward interest, but over time, more goes toward principal.

Property Taxes

Annual taxes paid to your local government based on your property's assessed value. These are typically escrowed and paid monthly as part of your mortgage payment.

Home Insurance

Protects your property from damage and provides liability coverage. Lenders require homeowners insurance to protect their investment in your property.

HOA Fees

If you buy a condo or property in a planned community, you'll pay monthly fees to the Homeowners Association for maintenance of common areas and amenities.

How Amortization Works

Amortization is the process of paying off your mortgage through regular payments over time. In the early years of your loan, most of each payment goes toward interest because your balance is highest. As you pay down the principal, less interest accrues, and more of each payment reduces your balance. This is why making extra payments early in your mortgage term saves the most money in interest.

Down Payment Strategies

The down payment is the upfront cash you pay toward the home purchase. A larger down payment reduces your loan amount, lowers monthly payments, and may help you avoid Private Mortgage Insurance (PMI). The standard down payment is 20%, but many programs allow as little as 3% down. Consider your savings, timeline, and other financial goals when deciding how much to put down. Read our mortgage planning guide →

Fixed vs. Adjustable Rate Mortgages

Fixed-rate mortgages lock in your interest rate for the life of the loan, providing predictable payments. They're ideal if you plan to stay long-term or if rates are historically low. Adjustable-rate mortgages (ARMs) start with lower rates that adjust periodically based on market conditions. ARMs can be risky if rates rise significantly, but may save money if you plan to sell or refinance before the adjustment period begins.

Interest Rates Matter

Even a small difference in interest rates can have a significant impact on your total cost over the life of the loan. A 0.5% rate difference on a $300,000 mortgage can mean $30,000+ in extra interest over 30 years. Your interest rate depends on factors including your credit score, down payment, loan term, and current market conditions. Shop around with multiple lenders - even a slight rate improvement pays off significantly. Learn how to compare loan options →

The 28/36 Rule

Lenders use the 28/36 rule to determine how much you can borrow. Your monthly housing costs (mortgage, taxes, insurance, HOA) shouldn't exceed 28% of your gross monthly income, and your total debt payments shouldn't exceed 36%. Use our Affordability Calculator to see how much house fits your budget, or read our complete guide: How Much House Can I Afford? →

Explore Related Tools

View your complete payment schedule with our Amortization Calculator, or check if refinancing could save you money. Compare your mortgage to a general loan calculation, and use the Tax Calculator to understand how mortgage interest deductions affect your taxes. If you're also carrying student loans or auto loans, factor those into your overall budget and track progress with the Net Worth Calculator.

How to Use the Mortgage Calculator

1

Enter the home price

Type the purchase price of the home you're considering. This is the listing price or your offer amount.

2

Set your down payment

Choose the percentage you'll pay upfront. 20% avoids PMI, but many buyers put down 3-10%. A larger down payment reduces monthly costs.

3

Add taxes and insurance

Enter annual property tax and homeowner's insurance estimates. These are typically escrowed into your monthly payment by the lender.

4

Compare loan options

Toggle the comparison view to see 15-year vs 30-year side by side. Shorter terms save dramatically on interest but require higher monthly payments.

15-Year vs 30-Year Mortgage: $350,000 Home (20% Down)

Feature15-Year at 5.9%30-Year at 6.5%
Loan Amount$280,000$280,000
Monthly P&I$2,410$1,770
Total Interest$153,736$357,306
Total Cost$433,736$637,306
Interest Savings$203,570 saved
Equity at Year 5$124,000$38,000

Excludes property tax, insurance, and PMI. Rates are illustrative — shop multiple lenders for actual quotes.

Frequently Asked Questions

How much house can I afford?
A general rule is that your monthly housing costs should not exceed 28% of your gross monthly income. This includes mortgage payment, property taxes, insurance, and HOA fees. Use our calculator to see different scenarios.
What is PMI and when do I need it?
PMI (Private Mortgage Insurance) is required when your down payment is less than 20% of the home's value. It typically costs 0.5-1% of the loan amount annually and protects the lender if you default. You can request PMI removal once you reach 20% equity.
Should I choose a 15-year or 30-year mortgage?
A 15-year mortgage has higher monthly payments but you'll pay significantly less interest overall and build equity faster. A 30-year mortgage has lower monthly payments but costs more in total interest. Choose based on your budget and financial goals.
How do property taxes affect my monthly payment?
Property taxes are typically 0.5-2.5% of your home's value annually. Most lenders require you to pay these monthly through an escrow account as part of your mortgage payment. Our calculator includes property tax in the monthly payment estimate.

How this is calculated

Formula, assumptions, and sources — reviewed May 26, 2026

Formula

M = P × [r(1+r)ⁿ] / [(1+r)ⁿ − 1]  ·  where P = loan amount, r = monthly rate, n = total months

Assumptions

  • Fixed interest rate for the full loan term (no rate resets).
  • Property tax and homeowner's insurance are divided evenly by 12 and added to the monthly payment (typical escrow behavior).
  • PMI is charged at 0.5% of the loan balance annually when the down payment is below 20%. Actual PMI rates vary from 0.3–1.5% by credit profile.
  • HOA fees are treated as a flat monthly amount and do not escalate.
  • Amortization is standard — every payment is applied first to interest, then to principal.

For comparison, the 28/36 rule from Fannie Mae guidelines suggests total housing costs stay under 28% of gross income and total debt under 36%. This calculator does not evaluate your personal ratios — it computes payments only.

Sources

Results are informational, not personalized financial advice. All math runs privately in your browser — no data is sent anywhere.