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Mortgage Payment Calculator
See your exact monthly payment, total interest, and full amortization schedule — instantly.
What Your Mortgage Payment Actually Includes — and Why the Sticker Price Isn't the Whole Story
When a lender quotes you a monthly payment, they're usually showing you the principal and interest only. But your actual monthly obligation is almost always higher — sometimes significantly higher — once property taxes, homeowners insurance, and private mortgage insurance are added in. Many buyers are surprised at closing when their real payment is $300–500 more than what they were initially told.
Understanding what goes into your payment before you shop helps you set an accurate budget, avoid overextending, and compare loan options on equal terms.
The Four Components of a Mortgage Payment (PITI)
Principal is the portion of your payment that reduces your loan balance. In the early years of a 30-year mortgage, this is surprisingly small — for the first few years of a $400,000 loan, less than 30% of each payment goes to principal. The rest is interest.
Interest is the cost of borrowing. A single percentage point difference in rate has an outsized impact over a 30-year term. On a $400,000 loan, the difference between a 6.5% and 7.5% rate is roughly $260/month — and more than $90,000 in total interest paid over the life of the loan.
Property taxes are collected monthly by most lenders and held in escrow until paid to the county. Tax rates vary dramatically by location — from under 0.4% annually in some Southern states to over 2% in parts of New Jersey, Illinois, and New York. These are often the most underestimated component of total housing cost.
Homeowners insurance is required by virtually all lenders and covers damage to the structure. PMI (private mortgage insurance) is added when your down payment is less than 20% and typically adds $50–200/month until you reach 20% equity.
How to Use This Calculator
Enter your loan amount, interest rate, loan term, and location-based tax and insurance estimates below. The calculator shows your full monthly payment including all four PITI components, a complete amortization schedule, and the total interest you'll pay over the life of the loan — the number lenders rarely volunteer upfront.
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What Are Current Mortgage Rates in 2026?
Mortgage rates in 2026 remain elevated compared to the historic lows of 2020–2021, though they have moderated from their 2023 peaks. The average 30-year fixed mortgage rate is currently in the 6.5%–7.0% range for well-qualified borrowers.
Average Rates by Loan Type (2026)
| Loan Type | Avg Rate |
|---|
| 30-year fixed | 6.75% |
| 15-year fixed | 6.10% |
| 20-year fixed | 6.40% |
| 5/1 ARM | 6.20% |
| FHA 30-year | 6.50% |
| VA 30-year | 6.25% |
| Jumbo 30-year | 6.90% |
Rates shown are national averages for well-qualified borrowers. Your rate will vary based on credit score, loan-to-value ratio, loan type, and lender.
How Much House Can I Afford?
The standard rule is to keep your total monthly housing costs — including principal, interest, taxes, and insurance (PITI) — below 28% of your gross monthly income. Your total debt payments should stay below 36%.
Affordability by Income (2026)
| Annual Income | Max Home Price* |
|---|
| $60,000 | ~$210,000 |
| $80,000 | ~$280,000 |
| $100,000 | ~$350,000 |
| $125,000 | ~$440,000 |
| $150,000 | ~$525,000 |
| $200,000 | ~$700,000 |
*Assumes 20% down, 6.75% rate, 30-year term, and no other significant debt. Actual affordability varies by debt load, location, and lender.
Frequently Asked Questions
How accurate is this mortgage calculator?
Our calculator uses the standard mortgage payment formula and provides highly accurate principal and interest payments based on your inputs. Property tax and insurance estimates are as accurate as the values you enter. Your actual payment may also include HOA fees, flood insurance, or other costs not captured here. Always get a Loan Estimate from a licensed lender for exact figures.
What is included in a mortgage payment (PITI)?
A full mortgage payment typically includes: Principal (the portion that reduces your loan balance), Interest (the cost of borrowing), Taxes (property taxes, usually escrowed monthly), and Insurance (homeowner's insurance, also typically escrowed). If your down payment is under 20%, you'll also pay Private Mortgage Insurance (PMI) until you reach 20% equity.
Is a 15-year or 30-year mortgage better?
A 15-year mortgage has a higher monthly payment but significantly lower total interest paid — often 50% less. A 30-year mortgage has a lower payment, giving you more monthly flexibility and cash flow. Most financial advisors recommend the 30-year if the payment difference would be invested, but the 15-year if you prioritize being debt-free and have stable income.
What credit score do I need for a mortgage?
Conventional loans typically require a minimum credit score of 620, though 740+ gets you the best rates. FHA loans accept scores as low as 580 (or 500 with 10% down). VA loans don't have a set minimum but most lenders require 620+. Each 20-point improvement in your score can meaningfully impact your interest rate.
When does PMI go away?
PMI automatically cancels when your loan balance reaches 78% of the original home value (22% equity). You can request cancellation at 80% equity (20% down). You can also eliminate PMI sooner by making extra principal payments or refinancing once you've built sufficient equity.
What is an amortization schedule?
An amortization schedule shows how each mortgage payment is split between principal and interest over the life of your loan. Early in the loan, most of your payment goes toward interest. Over time, the principal portion grows. The schedule above shows your year-by-year breakdown through payoff.
Mortgage Guide by State
Property taxes, closing and transfer taxes, and first-time-buyer programs change from one state to the next. Each guide is sourced to the state's housing finance agency and tax authority. Start with yours:
Compare Loan Types
Which loan fits depends on your down payment, credit, and where you're buying. Plain-language guides with the 2026 limits and fees:
Mortgage Guides
How to figure your real monthly payment in the situations basic calculators miss — and how to lower it.
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