The price on a listing is not what you pay each month. Your real house payment includes principal and interest plus property tax, homeowners insurance, often PMI and sometimes HOA dues. This mortgage calculator adds them all up, shows how much interest you pay over the life of the loan and tells you when PMI drops off.
Quick answer: A $400,000 home with 20% down at 6.5% for 30 years has a principal and interest payment of $2,022.62; with 1.1% property tax and $1,800 a year of insurance the total is $2,539.28 a month. Every $100,000 borrowed at 6.5% costs $632.07 a month over 30 years or $871.11 over 15 years. PMI ends automatically at 78% of the original home value.
How to use the mortgage calculator
- Enter the home price and your down payment as a percentage or a dollar amount.
- Enter the interest rate from your loan estimate and choose the loan term (30, 20, 15 or 10 years).
- Add property tax (% of price or $ per year), homeowners insurance per year and any HOA dues per month.
- If you put down less than 20%, enter your PMI rate or leave it blank to use 0.5% a year.
- Optionally add the first payment date to see the month PMI ends and your final payment date, then press Calculate.
How is a mortgage payment calculated?
| Part of the payment | Formula | $400,000, 20% down, 6.5%, 30 years |
|---|---|---|
| Loan amount (L) | Price − down payment | $320,000 |
| Principal & interest | L × r ÷ (1 − (1 + r)^−360), r = 6.5% ÷ 12 | $2,022.62 |
| Property tax | Price × tax rate ÷ 12 | 1.1%: $366.67 |
| Homeowners insurance | Yearly premium ÷ 12 | $1,800: $150.00 |
| PMI | L × PMI rate ÷ 12 (under 20% down) | $0 |
| HOA dues | As billed per month | $0 |
| Total monthly payment | Sum of the above | $2,539.28 |
In the very first payment, $1,733.33 is interest and only $289.28 reduces the balance. After year 1 you have paid $20,694.69 of interest and $3,576.72 of principal.
What is the monthly payment per $100,000 at today’s rates?
Principal and interest for each $100,000 you borrow. Multiply by your loan size: a $350,000 loan at 7% for 30 years is 3.5 × $665.30 = $2,328.55. The full chart, in quarter-point steps, is below the calculator.
| Rate | 15-year | 30-year |
|---|---|---|
| 5.0% | $790.79 | $536.82 |
| 5.5% | $817.08 | $567.79 |
| 6.0% | $843.86 | $599.55 |
| 6.5% | $871.11 | $632.07 |
| 7.0% | $898.83 | $665.30 |
| 7.5% | $927.01 | $699.21 |
| 8.0% | $955.65 | $733.76 |
What is the payment on a $300,000, $400,000 or $500,000 house?
Principal and interest with 20% down at 6.5% (add taxes, insurance and any HOA dues):
| Home price | Loan | 30-year | 15-year |
|---|---|---|---|
| $300,000 | $240,000 | $1,516.96 | $2,090.66 |
| $400,000 | $320,000 | $2,022.62 | $2,787.54 |
| $500,000 | $400,000 | $2,528.27 | $3,484.43 |
| $600,000 | $480,000 | $3,033.93 | $4,181.32 |
When does PMI drop off?
Most conventional lenders require private mortgage insurance when you put down less than 20%. Under the Homeowners Protection Act, it must end automatically when the balance is scheduled to fall to 78% of the original value (the purchase price or appraisal, whichever is lower), as long as you are current. You can request cancellation at 80%. FHA loans use a different mortgage insurance premium (MIP) with its own rules, so this calculator’s PMI applies to conventional loans.
Example: a $400,000 home with 10% down ($360,000 loan) at 6.5% for 30 years. P&I is $2,275.44, PMI at 0.5% adds $150 a month and the total with $4,400 of tax and $1,800 of insurance is $2,942.11. The scheduled balance first drops below $312,000 (78%) after payment 109; with a first payment in December 2026, PMI drops off in December 2035, after about $16,350 in premiums.
Worked examples
- 15-year loan, dollar down payment: a $300,000 home with $60,000 down at 6% for 15 years: P&I $2,025.26, total interest $124,546.15.
- Low down payment with HOA: a $350,000 condo with 3.5% down at 6.75%, PMI 0.8% and $250 HOA dues: P&I $2,190.64 + PMI $225.17 + HOA $250 = $2,665.81 before taxes and insurance; PMI lasts 145 payments (12 years 1 month).
- 15 vs. 30 years on $320,000 at 6.5%: $2,787.54 vs. $2,022.62 a month, but $181,757.84 vs. $408,142.36 of total interest.
How to read your results
- The bar shows how much of each payment is principal and interest and how much is taxes, insurance, PMI and HOA. In high-tax areas the second part can be a third of the bill.
- The yearly table shows how slowly the balance falls in the early years and the year PMI stops.
- Shopping for a car loan too? The loan calculator handles auto and personal loans with extra payments.
- Saving for the down payment? See how a certificate of deposit grows with the CD calculator.
- Checking a price change or tax rate? The percentage calculator finds a percent of a price or the change between two numbers.
Common mistakes
- Budgeting only for principal and interest. Taxes and insurance often add $400–$800 a month or more.
- Using the APR instead of the note rate. The APR includes fees and slightly overstates the payment.
- Forgetting that property taxes are reassessed. After you buy, the tax is often based on your purchase price, not the seller’s old bill.
- Assuming PMI lasts forever. On conventional loans it ends at 78% automatically, and paying extra principal can get you to 80% sooner so you can request cancellation.
- Comparing only the payment between terms. A 30-year loan’s lower payment comes with more than twice the interest of a 15-year loan.
These figures are estimates for planning, not an offer of credit. Your rate, PMI, taxes and insurance depend on your lender, credit, location and policy; check with your lender and review your Loan Estimate.
Frequently asked questions
How much is the mortgage payment on a $400,000 house?
With 20% down ($80,000), a $320,000 30-year fixed loan at 6.5% has a principal and interest payment of $2,022.62. Adding property tax of 1.1% a year ($366.67 a month) and $1,800 a year of insurance ($150 a month) brings the total to about $2,539.28 a month.
What is PITI?
PITI stands for principal, interest, taxes and insurance, the four parts of a typical monthly mortgage payment. Lenders usually collect taxes and insurance in an escrow account and pay the bills for you. PMI and HOA dues, if you have them, come on top.
How is a monthly mortgage payment calculated?
Principal and interest use the amortization formula M = L × r ÷ (1 − (1 + r)^−n), where L is the loan amount, r is the yearly rate ÷ 12 and n is the number of payments (360 for 30 years). Then add one-twelfth of the yearly property tax and insurance, plus monthly PMI and HOA dues.
When does PMI go away?
Under the federal Homeowners Protection Act, PMI on a conventional loan must end automatically when your balance is scheduled to reach 78% of the home’s original value, if you are current on payments. You can ask your servicer to cancel it earlier, at 80%. On a $400,000 home with 10% down at 6.5%, the 78% point ($312,000) is reached after payment 109, about 9 years in.
How much is PMI per month?
PMI usually costs about 0.3% to 1.5% of the loan amount per year, depending on your credit score and down payment. At 0.5%, a $360,000 loan costs $150 a month. This calculator uses 0.5% unless you enter your own quote.
Is a 15-year or 30-year mortgage better?
A 15-year loan has a higher payment but far less interest. On a $320,000 loan at 6.5%, the 30-year payment is $2,022.62 with $408,142.36 of total interest; the 15-year payment is $2,787.54 with $181,757.84 of interest. In practice 15-year rates are also usually lower, which widens the gap.
How much does a 1% lower rate save?
On a $320,000, 30-year loan, the principal and interest payment is $2,237.49 at 7.5%, $2,022.62 at 6.5% and $1,816.92 at 5.5%. Each percentage point is roughly $200 a month and more than $70,000 of interest over the life of the loan.
How much house can I afford?
A common guideline is to keep your total housing payment at or below about 28% of gross monthly income and all debt payments at or below about 36%, although many lenders allow more. A $2,539 payment fits the 28% rule at roughly $108,800 a year of gross income. Use this calculator with your real tax and insurance figures before you shop.
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