Mortgage Payment Calculator
See the full monthly cost of a home — principal, interest, property tax and insurance — plus what the loan actually costs you over thirty years, which is usually the number that changes people's minds.
- Updated Aug 17, 2026
- Reviewed by the BSF CPA Editorial Team
- US mortgages
- 10 min read
On a 30-year loan the interest usually costs more than the house. At the August 2026 average rate of 6.67%, a median-priced $434,100 home with 20% down means a $347,280 loan, a $2,234 principal-and-interest payment, and $456,965 of interest over the full term — about 1.3× the amount borrowed. Adding tax and insurance brings the monthly cost to roughly $2,799.
Enter the price, your down payment, the rate and term, and your annual property tax and homeowners insurance. Results update as soon as the page loads.
Free Tool · Mortgage Rates 2026
Mortgage Payment Calculator
Calculate your monthly mortgage payment, total interest paid, and full amortization schedule for any home loan.
Loan Details
Frequently Asked Questions
How to read your results
| Output | What it means | Why it matters |
|---|---|---|
| Total monthly payment | Principal, interest, tax and insurance combined | The closest figure to what actually leaves your account each month. |
| Principal & interest | The loan repayment itself | The only part fixed for the whole term — tax and insurance drift upward. |
| Property tax (mo.) | Your annual tax ÷ 12 | Reassessed periodically, and it rarely falls. |
| Insurance (mo.) | Annual premium ÷ 12 | Has risen sharply in many states; get a real quote before you commit. |
| Loan amount | Price − down payment | What you actually borrow and pay interest on. |
| Total interest paid | All interest across the full term | Usually the largest single number on the page. |
What makes up a mortgage payment
Lenders call it PITI — principal, interest, taxes and insurance. Principal and interest repay the loan; taxes and insurance are collected monthly into an escrow account and paid out on your behalf when they fall due.
The split between principal and interest shifts dramatically over the term. On the example above, the first payment is roughly $1,930 interest and $304 principal. It takes about 20 years before more of each payment goes to principal than to interest. This is why selling after five years builds far less equity than people expect, and why early extra payments are so much more powerful than late ones.
Mortgage insurance, HOA dues, closing costs and maintenance are not included. HOA dues and mortgage insurance both count toward the payment lenders qualify you on — add them to the insurance field if you want a true PITI figure.
The formula
i = rate ÷ 12 · n = years × 12
P&I = loan × i × (1 + i)n ÷ [(1 + i)n − 1]
total monthly = P&I + (annual tax ÷ 12) + (annual insurance ÷ 12)
total interest = (P&I × n) − loan
- i The monthly rate — annual rate divided by 12.
- n Number of monthly payments; the term selector offers 30, 20, 15 and 10 years.
- P&I Fixed for the life of a fixed-rate loan.
Taxes and insurance are treated as constant. In reality both tend to rise, so a payment that is affordable today will typically be a little higher in five years even on a fixed-rate loan.
The missing piece: mortgage insurance
If you put down less than 20%, a conventional lender will require private mortgage insurance. It protects the lender, not you, and it is a real monthly cost this calculator does not show.
PMI typically runs 0.3%–1.5% of the loan balance a year, driven mainly by credit score and down payment. On the median home with 5% down — a $412,395 loan — here is what that does to a payment the calculator reports as $3,217:
| PMI rate | Typical borrower | Monthly PMI | True total | Understated by |
|---|---|---|---|---|
| 0.46% | Score 760+ | $158 | $3,376 | 4.9% |
| 0.80% | Mid-range | $275 | $3,492 | 8.5% |
| 1.50% | Score 620–639 | $515 | $3,733 | 16.0% |
Multiply your loan amount by your PMI rate and add the result to the annual homeowners insurance field. On a $412,395 loan at 0.8%, that is $3,299 a year — enter $5,299 instead of $2,000 and the total payment comes out right.
The good news: PMI is not permanent. Under the Homeowners Protection Act you can request cancellation at 80% loan-to-value, and it must terminate automatically at 78% based on the original amortization schedule. FHA loans are different — their mortgage insurance premium often lasts the life of the loan.
Three worked examples
All three use the US median existing-home price of $434,100 (July 2026), property tax of $4,775 and homeowners insurance of $2,000 a year. Both vary widely by state — use your own figures.
$434,100 price, $86,820 down, 6.67%, 30 years
Loan $347,280. Principal and interest $2,234, plus $398 tax and $167 insurance for a total of $2,799 a month. Total interest over the term: $456,965 — you repay $804,245 for a $347,280 loan. No PMI, because the down payment reaches 20%.
Same house, $21,705 down, 6.67%, 30 years
Loan $412,395, principal and interest $2,653, calculator total $3,217. But at 95% loan-to-value PMI applies: at a typical 0.8% that is another $275 a month, so the real cost is about $3,492. Total interest rises to $542,646. The smaller down payment costs $693 a month more than Example 1 and $85,681 more in interest.
Same house and down payment, 5.96%, 15 years
Shorter terms carry lower rates — 5.96% against 6.67% in August 2026. Principal and interest $2,923, total $3,488. Total interest: $178,868, against $456,965 on the 30-year. The payment is $689 higher; the saving is $278,097.
How slowly equity builds
Amortization front-loads interest. On Example 1's $347,280 loan, the first payment splits $1,930 to interest and $304 to principal — and the balance falls so slowly at first that the arithmetic surprises most buyers.
| After | Balance remaining | Principal repaid | Interest paid | Total equity |
|---|---|---|---|---|
| Year 5 | $325,721 | $21,559 | $112,482 | $108,379 |
| Year 10 | $295,655 | $51,625 | $216,457 | $138,445 |
| Year 15 | $253,727 | $93,553 | $308,570 | $180,373 |
| Year 20 | $195,256 | $152,024 | $384,139 | $238,844 |
| Year 30 | $0 | $347,280 | $456,965 | $434,100 |
Equity assumes no price change: the $86,820 down payment plus principal repaid.
Not until month 236 — nineteen years and eight months in — does more of your payment go to principal than to interest. After five years you have repaid just $21,559 of the loan while paying $112,482 in interest, more than five times as much.
Two consequences. Selling early builds far less equity than people assume, so short holds lean heavily on price appreciation. And an extra payment made in year one removes principal that would otherwise accrue interest for twenty-nine more years — which is why early overpayments are worth several times the same money paid late.
15-year vs 30-year
| Term | Rate (Aug 2026) | P&I | Total monthly | Total interest |
|---|---|---|---|---|
| 30-year fixed | 6.67% | $2,234 | $2,799 | $456,965 |
| 15-year fixed | 5.96% | $2,923 | $3,488 | $178,868 |
The 15-year wins on almost every financial measure: a lower rate, less than half the interest, and equity that builds from the first payment. Its weakness is flexibility — the higher payment is compulsory. A common middle path is to take the 30-year and pay it like a 15-year, which captures most of the saving while leaving you able to fall back to the lower required payment if income drops.
What a rate move actually costs
Median home, 20% down, 30-year term:
| Rate | P&I | Total monthly | Total interest |
|---|---|---|---|
| 5.67% | $2,009 | $2,574 | $375,966 |
| 6.17% | $2,120 | $2,685 | $416,001 |
| 6.67% (current) | $2,234 | $2,799 | $456,965 |
| 7.17% | $2,350 | $2,915 | $498,809 |
| 7.67% | $2,469 | $3,033 | $541,483 |
Each half-point costs roughly $115 a month and $41,000 in interest on this loan. That is the value of shopping lenders: a quarter-point improvement is worth about $20,000 over the term, for a few hours of work.
Common mistakes
Budgeting on principal and interest alone
Tax and insurance added $565 a month in Example 1 — a quarter of the payment. PMI, HOA dues and maintenance push it further.
Forgetting PMI under 20% down
At 95% loan-to-value, PMI adds 5–16% to the payment depending on your credit score. Add it to the insurance field.
Using a national average tax rate
Effective property tax varies severalfold between states and even between counties. Look up the actual figure for the address.
Assuming the payment never changes
Principal and interest are fixed; tax and insurance are not. Escrow reviews commonly raise payments year to year.
Not shopping the rate
A quarter-point is worth roughly $20,000 over 30 years here. Lender quotes on the same file routinely differ by more than that.
Buying to the top of the approval
Qualifying for a payment and comfortably carrying one are different tests. Leave room for maintenance, which runs about 1% of value a year.
Best practices
Get real tax and insurance numbers
Pull the county assessment for the specific property and get an actual insurance quote. Estimates here are often thousands of dollars a year out.
Compare on total interest, not payment
The 15-year in Example 3 costs $689 more a month and saves $278,097. Payment alone hides the whole decision.
Reach 20% down if you reasonably can
It removes PMI entirely, lowers the rate on many pricing grids, and cut the payment by $693 a month in these examples.
Cancel PMI as soon as you qualify
Request cancellation at 80% loan-to-value rather than waiting for automatic termination at 78%. Appreciation can get you there early.
Frequently asked questions
Does this include PMI?
No. If your down payment is under 20%, multiply the loan amount by your PMI rate — usually 0.3%–1.5% a year — and add that to the annual homeowners insurance field.
What is PITI?
Principal, interest, taxes and insurance — the four components lenders use when qualifying you. This calculator covers all four. Mortgage insurance and HOA dues also count toward the figure lenders assess.
Why is total interest higher than the loan?
Because 30 years is a long time. At 6.67% you pay about $457,000 of interest on a $347,280 loan — roughly 1.3× the amount borrowed. Shortening the term or raising the down payment is what reduces it.
Should I take a 15-year or 30-year loan?
The 15-year costs far less overall — $178,868 against $456,965 in our example — and carries a lower rate. The 30-year offers a lower required payment and more flexibility. Taking the 30-year and voluntarily overpaying captures much of the benefit of both.
How much house can I afford?
This tool answers the reverse question — the cost of a given price. To work from income instead, use our loan eligibility calculator, which applies the debt-to-income test lenders run, and remember to include taxes and insurance in the payment.
When can I cancel PMI?
You can request cancellation once you reach 80% loan-to-value, and it must terminate automatically at 78% under the Homeowners Protection Act. FHA mortgage insurance often lasts the life of the loan, which is a reason to refinance out of FHA once you have equity.
Will my payment stay the same?
Principal and interest will on a fixed-rate loan. Taxes and insurance change, so the escrow portion is periodically recalculated and your total payment adjusts — usually upward.
Are property taxes and insurance always escrowed?
Usually, especially with less than 20% down. Some lenders let borrowers with substantial equity pay these directly, occasionally for a small fee. Either way they are real costs that belong in your budget.
What is a good mortgage rate right now?
As of mid-August 2026 the 30-year fixed averaged 6.67% and the 15-year 5.96%. Your quote depends on credit score, down payment, loan size and property type. Compare several lenders on the same day, since rates move.
Do extra payments help much?
Yes, and far more early than late, because interest accrues on the outstanding balance. In year one, roughly $1,930 of a $2,234 payment is interest — an extra payment then removes principal that would otherwise accrue interest for decades.
Should I buy points to lower my rate?
It depends how long you keep the loan. Divide the cost of the points by the monthly saving to get the break-even in months. If you expect to sell or refinance before then, points lose money.
Does the calculator handle 10- and 20-year terms?
Yes. The term selector offers 30, 20, 15 and 10 years. Shorter terms usually carry lower rates, so lower the rate accordingly rather than leaving it at the 30-year figure.
Methodology & sources
Principal and interest use the standard fixed-rate amortization formula with monthly compounding and end-of-month payments. Property tax and insurance are annual figures divided by twelve and held constant. Total interest is principal and interest multiplied by the number of payments, less the loan amount. Mortgage insurance, HOA dues and closing costs are excluded; see the PMI section for how to include them.
- Freddie Mac Primary Mortgage Market Survey — 30-year 6.67% and 15-year 5.96%, week of August 13, 2026.
- National Association of Realtors — median existing-home sales price, $434,100, July 2026.
- Consumer and industry data on private mortgage insurance pricing by credit tier, 2026.
- Homeowners Protection Act of 1998 — PMI cancellation at 80% and automatic termination at 78% LTV.
Related resources
- Loan Eligibility CalculatorHow much a lender will actually approve
- Loan Prepayment CalculatorWhat overpaying saves over 30 years
- 15 vs 30-Year MortgageThe trade-off in full
- Refinance Break-EvenWhen refinancing pays for itself
- Buy vs Rent CalculatorWhether to buy at all
- All CalculatorsThe full BSF library
Run your real numbers before you make an offer
Use your county's tax figure and an actual insurance quote — the difference between estimates and reality is often hundreds of dollars a month.
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The Mortgage Payoff vs. Invest Decision Guide (2026 Edition)
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