Key Takeaways
- On a $400,000 home with 20% down at 7%, principal and interest is $2,129 a month, but the payment you write a check for is about $2,736 once property tax and insurance are in.
- Every $100,000 you borrow costs about $665 a month at 7% over 30 years. Each half point on the rate moves that by about $34, which is roughly $109 a month on a $320,000 loan.
- Putting 5% down instead of 20% on the same home raises the payment by about $637 a month, counting an estimated $238 of PMI. PMI is the part you can get rid of.
- A 15-year loan at 6.4% costs $641 more a month than a 30-year at 7% and saves about $268,000 in interest on a $320,000 loan.
- An extra $200 a month ends a 30-year loan 6 years 9 months early and saves about $121,000 in interest. The earlier you start, the more it saves.
Table of Contents
- Mortgage Payment Calculator
- What Goes Into Your Monthly Payment
- Monthly Payment by Home Price and Interest Rate
- Where Rates Are Today
- How Your Down Payment Changes the Payment
- 15-Year vs. 30-Year Payments
- What an Extra Payment Does
- Property Tax, Insurance and HOA: The Estimates to Replace
- Why Your Lender’s Number Will Differ
- Frequently Asked Questions
On a $400,000 home with 20% down at a 7% rate, principal and interest comes to $2,129 a month. The payment you actually make is $2,736, because property tax and homeowners insurance get added to it, and PMI is added as well if you put down less than 20%. Most online payment figures show only the first number, which is why the bank’s estimate usually comes in higher.
The calculator below adds all of it up. Enter a price, a down payment, a rate and a term, and it shows the full monthly payment, what you will pay in total interest, and today’s rates from lenders for the same loan. Under it, you will find the payment worked out for common home prices, rates, down payments and loan terms, so you can find your situation without typing anything.
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Your monthly payment with taxes, insurance and PMI, then today's rates from lenders.
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What Goes Into Your Monthly Payment
A mortgage payment has up to five parts, often called PITI plus mortgage insurance. Principal pays down what you borrowed. Interest is the lender's charge on the balance. Property tax and homeowners insurance are bills you owe whether or not you have a mortgage, but most lenders collect them monthly and pay them for you from an escrow account. PMI is added if you put down less than 20%. A condo or planned community adds HOA dues, which the lender counts but does not collect.
Here is the breakdown for the $400,000 example, with 20% down, a 7% rate and a 30-year term:
| Part of the payment | Per month | Share |
|---|---|---|
| Principal and interest | $2,129 | 78% |
| Property tax (1.2% of the price a year) | $400 | 15% |
| Homeowners insurance (0.62% of the price a year) | $207 | 8% |
| PMI (20% down, none) | $0 | 0% |
| Total | $2,736 | 100% |
Principal and interest is the only part that stays the same for the life of a fixed-rate loan. Taxes and insurance rise over time, which is why the total on your statement can climb even though your rate never changes. The extra $607 a month in this example is 28% on top of the number most calculators show.
A useful shortcut: at 7% over 30 years, every $100,000 you borrow costs about $665.30 a month in principal and interest. A $320,000 loan is 3.2 of those, which gives $2,129. Add the tax and insurance estimates and you have the full payment.
Monthly Payment by Home Price and Interest Rate
This table shows principal and interest only, assuming 20% down and a 30-year fixed loan. Find your price in the left column and your rate across the top. Taxes and insurance come on top: in this example they added about $607 a month on a $400,000 home, so roughly 0.15% of the price per month for the pair.
| Home price | 6.0% | 6.5% | 7.0% | 7.5% | 8.0% |
|---|---|---|---|---|---|
| $200,000 | $959 | $1,011 | $1,064 | $1,119 | $1,174 |
| $250,000 | $1,199 | $1,264 | $1,331 | $1,398 | $1,468 |
| $300,000 | $1,439 | $1,517 | $1,597 | $1,678 | $1,761 |
| $400,000 | $1,919 | $2,023 | $2,129 | $2,237 | $2,348 |
| $500,000 | $2,398 | $2,528 | $2,661 | $2,797 | $2,935 |
| $600,000 | $2,878 | $3,034 | $3,193 | $3,356 | $3,522 |
| $800,000 | $3,837 | $4,045 | $4,258 | $4,475 | $4,696 |
The pattern to notice is the cost of a rate change. Moving from 7.0% to 7.5% adds $81 a month on a $300,000 home and $163 on a $600,000 home. Half a point looks small on a rate sheet but it is a car payment on a larger loan. If you are weighing paying for a lower rate, the guide to mortgage points explains when that is worth it.
To work out any other loan, use the payment per $100,000 borrowed:
| 30-year rate | 30-year payment per $100,000 | 15-year payment per $100,000 (rate 0.6 points lower) |
|---|---|---|
| 6.0% | $599.55 | $811.79 |
| 6.5% | $632.07 | $838.46 |
| 7.0% | $665.30 | $865.62 |
| 7.5% | $699.21 | $893.25 |
| 8.0% | $733.76 | $921.34 |
Multiply by your loan in hundreds of thousands. A $275,000 loan at 6.5% is 2.75 times $632.07, or $1,738.
Where Rates Are Today
The tables use round rates so the math is easy to follow. Your rate depends on your credit score, down payment, loan type and the day you lock, and it can differ from the national average by half a point or more. The national averages below update daily; the lender table under the calculator uses your own numbers.
If a quote comes in well above these averages, ask which fees are rolled into the rate and compare the APR, not just the rate. Our guide to getting the lowest mortgage rate covers what moves your rate, and how your credit score affects your mortgage rate explains the effect of your score.
How Your Down Payment Changes the Payment
Your down payment changes the payment in two ways. It shrinks the loan, and below 20% it adds mortgage insurance. This table runs the same $400,000 home at 7% with four down payments. The PMI figure is an estimate at 0.75% of the loan a year, the same assumption the calculator uses. Your actual premium depends on your credit score and down payment and may be higher or lower.
| Down payment | Cash down | Loan | Principal and interest | PMI (estimate) | P&I plus PMI | More than at 20% down |
|---|---|---|---|---|---|---|
| 5% | $20,000 | $380,000 | $2,528 | $238 | $2,766 | +$637 |
| 10% | $40,000 | $360,000 | $2,395 | $225 | $2,620 | +$491 |
| 15% | $60,000 | $340,000 | $2,262 | $212 | $2,475 | +$346 |
| 20% | $80,000 | $320,000 | $2,129 | None | $2,129 | - |
Going from 5% to 20% down takes $637 off the monthly payment and $60,000 off the loan. It also takes about $238 of PMI off the bill. That is a large part of the saving, and the part that disappears on its own.
PMI does not last forever. Under the Homeowners Protection Act (12 U.S.C. § 4902), you can ask the servicer to cancel it once your balance reaches 80% of the home's original value, and the servicer must end it automatically at 78% if you are current on payments. Getting rid of PMI walks through the steps, including when a new appraisal helps.
If saving 20% would take years, a smaller down payment can still be the right call. Compare the payment above against what renting while you save would cost, and check whether down payment assistance programs fit your situation. The calculator above lets you try each down payment against your own price.
15-Year vs. 30-Year Payments
A 15-year loan carries a lower rate and a much higher payment. The table compares them on a $320,000 loan. The 30-year uses 7.0% and the 15-year uses 6.4%, which is close to the gap Freddie Mac's weekly survey showed in late September (7.03% and 6.42% on September 24).
| Loan | Monthly principal and interest | Total interest | Difference |
|---|---|---|---|
| 30-year at 7.0% | $2,129 | $446,000 | - |
| 15-year at 6.4% | $2,770 | $179,000 | $268,000 less interest |
The 15-year payment is $641 higher, a 30% jump. Most borrowers who choose it do so because the lower rate and the shorter term cut interest by more than half. The risk is the larger fixed bill: a job loss or a repair year is harder on a payment that high. A common middle path is a 30-year loan with extra principal when money allows, which the next section prices. 15 vs. 30-year mortgage compares the two in more detail.
What an Extra Payment Does
Extra principal goes straight against the balance, so the interest on it never gets charged. On a $320,000 loan at 7% with a 30-year term, the regular payment is $2,129 and total interest is about $446,000. Adding a fixed amount every month changes the ending a lot:
| Extra each month | Loan paid off in | Total interest | Interest saved |
|---|---|---|---|
| None | 30 years | $446,000 | - |
| +$100 a month | 26 years 1 months | $375,000 | $72,000 |
| +$200 a month | 23 years 3 months | $325,000 | $121,000 |
| +$500 a month | 17 years 9 months | $239,000 | $207,000 |
The saving is front-loaded: an extra $200 in year 1 does far more than the same $200 in year 20, because it removes interest that would have compounded for decades. Before you commit, check that your loan has no prepayment penalty (most conventional loans do not), and make sure the extra is applied to principal. If you would rather make one large payment than many small ones, mortgage recasting explains how lowering your payment after a lump sum works. Paying off your mortgage early covers the trade-offs.
Property Tax, Insurance and HOA: The Estimates to Replace
The calculator estimates property tax at 1.2% of the price a year and insurance at 0.62%. Both are placeholders. Property tax depends on your county and can run well below or above 1.2%, and your tax bill may be reassessed to the purchase price after you buy. Insurance averages about $2,490 a year on a $400,000 dwelling, according to NerdWallet's national average, but it varies a lot by state, roof age and storm exposure.
Replace both estimates before you rely on the total. For tax, look up the property's current bill on the county assessor's site and ask the seller or agent whether it will reset. For insurance, get a real quote before you make an offer, because a home in a high-risk area can add hundreds a month. The advanced options in the calculator let you type both in. Homeowners insurance 101 lays out what a policy covers and what drives the price.
HOA dues are not collected by the lender, but they count against your qualifying ratios and belong in the monthly total, so enter them too. Special assessments are not in the calculator at all and are worth asking about on a condo.
Not Sure What Price Fits Your Budget?
This page starts from a price and shows the payment. If you would rather start from your income and debts, the affordability calculator works backward to a price range.
Why Your Lender's Number Will Differ
A lender's estimate will rarely match a calculator to the dollar. The usual reasons, from largest to smallest:
- Real taxes and insurance. The estimates here are averages, and your property is not.
- Mortgage insurance. PMI is priced on your credit score and down payment, and FHA loans use a different mortgage insurance premium altogether.
- Your actual rate. The rate on your Loan Estimate reflects points, credits and your credit score. Compare it against the rate you entered.
- Escrow cushion. Lenders may collect a reserve of up to two months of taxes and insurance at closing and set the monthly amount to cover shortfalls.
- Loan type. An FHA, VA or USDA loan has its own fees and insurance rules that this calculator does not model.
The document that settles the question is the Loan Estimate, which every lender must give you within three business days of an application. It shows the rate, the monthly principal and interest, the estimated taxes and insurance and the cash to close. The Consumer Financial Protection Bureau's homebuying guide explains how to read it and compare two of them side by side. Closing costs on a mortgage covers what else to budget for on closing day.
For the wider picture of how loans, rates and approval fit together, start at our mortgage hub.
Frequently Asked Questions
At 7% over 30 years, a $300,000 loan costs $1,996 a month in principal and interest. A $300,000 home with 20% down is a $240,000 loan, which is $1,597 a month before taxes and insurance.
With 20% down and a 7% rate, the loan is $320,000 and principal and interest is $2,129. With property tax at 1.2% and insurance at 0.62% of the price, the total is about $2,736 a month.
At 7% over 30 years, a $200,000 loan costs $1,331 a month in principal and interest, or $1,199 at 6% and $1,468 at 8%.
Usually, yes. Most lenders collect property tax and homeowners insurance monthly through an escrow account and pay the bills for you. Principal and interest is only part of the payment, and the tax and insurance portions can change from year to year.
At 7% on a 30-year loan, each 1 point change in the rate moves the payment by about $66 for every $100,000 borrowed. On a $320,000 loan, going from 6% to 7% adds about $210 a month.
PMI depends on your credit score and down payment, and the exact premium appears on your Loan Estimate. The calculator estimates 0.75% of the loan a year. You can ask to cancel it at 80% of the home's original value, and the servicer must end it at 78% if you are current.
It can be if the payment fits your budget with room to spare. On a $320,000 loan, a 15-year at 6.4% costs $2,770 a month against $2,129 for a 30-year at 7%, and saves about $268,000 in interest. If the higher payment would strain your budget, a 30-year loan with extra payments gives you more flexibility.
On a $320,000 loan at 7% over 30 years, an extra $200 a month pays the loan off 6 years 9 months early and saves about $121,000 in interest.
The most common reasons are real property tax and insurance bills that are higher than the estimates, PMI, and a rate that differs from the one entered. Replace the estimates in the advanced options with your own numbers, then compare to the monthly figures on your Loan Estimate.
This page is general information, not financial advice. Rates, taxes, insurance and PMI vary by lender, location and borrower, and the figures here are illustrative. Compare written Loan Estimates from more than one lender before you decide.
