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Mortgage Calculator — See Your Real Monthly Payment
By MoneyDecoded · Last updated April 2026 · 2-minute tool
Enter your loan details below to instantly see your monthly payment, total interest paid over the life of the loan, and a full year-by-year amortization breakdown. No sign-up required.
📊 Average US Mortgage (2026)
6.82%
Avg 30-yr fixed rate
$2,180
Avg monthly payment
$420K
Median home price
Sources: Freddie Mac, NAR. For reference only — your rate will vary based on credit score, down payment, and lender.
Mortgage Calculator
Calculate Your Monthly Payment
$
$
20.0% down
%
$
$
$
Monthly Payment
—
Principal + Interest
Total Monthly
—
Inc. tax, insurance, HOA
Loan Amount
—
Home price − down payment
Total Interest
—
Over full loan term
Total Cost
—
Principal + all interest
Payoff Date
—
Estimated
—
Interest
Principal
—
Total Interest
—
Tax + Insurance + HOA
—
Showing annual summary. Figures rounded for clarity.
Most people focus only on the interest rate, but your real monthly housing cost is made up of four components — often called PITI: Principal, Interest, Taxes, and Insurance. A $400,000 home at 6.82% might have a P&I payment of $2,610, but add property taxes ($400/mo), homeowners insurance ($100/mo), and HOA fees, and your real cost can easily hit $3,200 or more.
$1,400
Avg extra cost vs. headline rate
2.5×
Total paid vs. home price (30yr)
0.5%
Rate drop = ~$100/mo savings
20%
Down avoids PMI entirely
Smart Strategies
How to Pay Less Over the Life of Your Loan
📉
Improve Your Credit Score First
A score above 760 qualifies you for the best rates. Going from 680 to 760 can save 0.5–1% on your rate — worth thousands over 30 years.
💰
Make One Extra Payment Per Year
Paying one extra monthly payment annually knocks 4–5 years off a 30-year mortgage and saves tens of thousands in interest.
🏦
Shop at Least 3–5 Lenders
Rates vary significantly between lenders. Getting 5 quotes instead of 1 saves the average buyer $3,000+ over the loan term.
📅
Consider a 15-Year Mortgage
15-year rates are typically 0.5–0.75% lower than 30-year rates. You'll pay more monthly but less than half the total interest.
Common Questions
Mortgage Calculator FAQ
How is my monthly mortgage payment calculated? ▾
Your base payment (Principal + Interest) is calculated using the standard amortization formula: M = P[r(1+r)^n]/[(1+r)^n-1], where P is the loan amount, r is the monthly interest rate, and n is the number of payments. Your true monthly cost also includes property taxes, homeowners insurance, and any HOA fees.
What is PMI and do I need it? ▾
Private Mortgage Insurance (PMI) is required by most lenders when your down payment is less than 20% of the home's purchase price. PMI typically costs 0.5–1.5% of the loan amount annually (roughly $100–$300/mo on a $300,000 loan). Once you reach 20% equity, you can request PMI removal.
Is a 15-year or 30-year mortgage better? ▾
It depends on your priorities. A 15-year mortgage has a lower rate and you'll pay roughly half the total interest — but monthly payments are 40–50% higher. A 30-year mortgage gives you lower payments and more cash flow flexibility, but you'll pay significantly more in interest over time. Use the calculator above to compare both scenarios with your numbers.
How much house can I actually afford? ▾
A common rule is the 28/36 rule: your monthly housing costs (PITI) should not exceed 28% of your gross monthly income, and total debt (including car loans, student loans) should not exceed 36%. Lenders also look at your debt-to-income ratio — most prefer it below 43% for conventional loans.
Should I pay points to lower my interest rate? ▾
Each discount point costs 1% of the loan amount and typically lowers your rate by 0.25%. To decide if it's worth it, calculate the break-even point: divide the cost of points by your monthly savings. If you plan to stay longer than that break-even period (often 5–8 years), paying points makes sense.
What is an amortization schedule? ▾
An amortization schedule shows exactly how each payment is split between principal and interest over the life of the loan. Early payments are mostly interest — on a 30-year mortgage, it can take over 20 years before you're paying more principal than interest each month. Use the calculator above to see your full schedule.
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