Mortgage Calculator
A $400,000 home with 20% down at 7.28% for 30 years costs about $2,689.48 a month. That's $2,189.48 principal & interest, $333.33 property tax and $166.67 homeowners insurance. Change any number below to see your own payment.
Amortization schedule by year
| Year | Principal paid | Interest paid | Balance at year end |
|---|---|---|---|
| 1 | $3,079 | $23,195 | $316,921 |
| 2 | $3,311 | $22,963 | $313,610 |
| 3 | $3,560 | $22,714 | $310,050 |
| 4 | $3,828 | $22,446 | $306,222 |
| 5 | $4,116 | $22,157 | $302,105 |
| 6 | $4,426 | $21,848 | $297,679 |
| 7 | $4,759 | $21,514 | $292,919 |
| 8 | $5,118 | $21,156 | $287,802 |
| 9 | $5,503 | $20,771 | $282,299 |
| 10 | $5,917 | $20,356 | $276,381 |
Rates here start at the Freddie Mac PMMS average for the week of October 1, 2026: 7.28% on a 30-year fixed and 6.6% on a 15-year fixed. That survey is an average. It reflects borrowers with strong credit and about 20% down. Your quoted rate can be higher or lower. The 2026 conforming loan limit (FHFA) is $832,750 in most counties and up to $1,249,125 in high-cost areas.
How the monthly mortgage payment is calculated
The principal & interest part of a fixed-rate mortgage uses one formula: M = P × r / (1 − (1 + r)−n). P is the loan amount. r is the annual rate divided by 12. n is the number of monthly payments. On a fixed-rate loan, that part never changes.
Then the lender adds more on top. It collects one-twelfth of the yearly property tax and homeowners insurance into an escrow account. It adds private mortgage insurance (PMI) if you put down less than 20% on a conventional loan. HOA dues are separate, but you still pay them every month. Put together, these are often called PITI.
Worked example
- Loan amount: $400,000 − $80,000 down = $320,000.
- Monthly rate r = 7.28% ÷ 12 = 0.006067; payments n = 30 × 12 = 360.
- M = $320,000 × 0.006067 ÷ (1 − (1 + 0.006067)−360) = $2,189.48.
- Property tax at an assumed 1% of value: $4,000 ÷ 12 = $333.33. Insurance at an assumed $2,000/yr ÷ 12 = $166.67.
- Total: $2,189.48 + $333.33 + $166.67 = $2,689.48 per month. No PMI because the loan is 80% of the price.
Over 30 years you would pay $468,213 in interest on that $320,000 loan. Stop on that number for a second. In month 1, $1,941.33 of the payment is interest. Only $248.15 goes to principal. Principal doesn't overtake interest until month 247 (year 21). It takes 8 years just to pay down the first 10% of the balance. In other words, the early years mostly pay interest.
Now put only 5% down on the same house. The loan grows to $380,000. Principal & interest rises to $2,600.01. PMI adds about $190.00, at an assumed 0.6% of the loan per year. Freddie Mac says PMI typically runs about $30–$70 a month per $100,000 borrowed. The total comes to about $3,290.01.
Payment on $320,000 at different rates
| Rate | 30-year P&I | 15-year P&I | 30-year total interest |
|---|---|---|---|
| 5.5% | $1,816.92 | $2,614.67 | $334,093 |
| 6% | $1,918.56 | $2,700.34 | $370,682 |
| 6.5% | $2,022.62 | $2,787.54 | $408,142 |
| 7% | $2,128.97 | $2,876.25 | $446,428 |
| 7.28% (PMMS avg.) | $2,189.48 | $2,926.58 | $468,213 |
| 7.5% | $2,237.49 | $2,966.44 | $485,495 |
| 8% | $2,348.05 | $3,058.09 | $525,297 |
Monthly payment by loan amount
Pick a loan amount. Each page has a rate table, down payment options and the income you'd need.
Frequently asked questions
What is included in a mortgage payment?
Principal and interest on the loan. Usually also property tax and homeowners insurance, paid through escrow. A conventional loan with less than 20% down adds PMI. An FHA loan adds a mortgage insurance premium. Condo or HOA dues are usually paid separately.
When does PMI go away?
On a conventional loan, the CFPB says you can ask to cancel PMI once your balance reaches 80% of the home's original value. PMI must end automatically when the balance is scheduled to reach 78%. FHA mortgage insurance follows different rules.
Why does the calculator default to 7.28%?
That is Freddie Mac's Primary Mortgage Market Survey average for a 30-year fixed, week of October 1, 2026. It's a national average. It's not a quote. Enter the rate a lender offers you.
Should I choose a 15-year or 30-year mortgage?
A 15-year loan has a higher monthly payment. It usually has a lower rate and much less total interest. A 30-year loan keeps the required payment lower. You can still pay extra principal on a 30-year loan. The extra payments calculator shows what that does.
How accurate is the property tax estimate?
Not very. The 1% default is only an illustration. Property tax rates vary a lot by state, county and city. Check your county assessor's site or the listing's tax history. Then enter that amount.
Related calculators
Sources
- Freddie Mac, Primary Mortgage Market Survey (week of October 1, 2026)
- FHFA, Conforming Loan Limit Values for 2026
- HUD, FHA Mortgage Limits lookup
- CFPB, What is a debt-to-income ratio?
- CFPB, When can I remove private mortgage insurance (PMI)?
- Freddie Mac, Breaking down PMI
- HUD Mortgagee Letter 2023-05 (FHA annual MIP reduction)
Updated: October 2, 2026 · Sources and methodology