Mortgage Calculator
The monthly payment on a $400,000 home with 20% down is $2,539 at a 6.5% rate over 30 years. That is $2,023 in principal and interest plus $367 in tax and $150 in insurance. Over the full term you pay $408,142 in interest.
| Total monthly payment | |
| Principal and interest | |
| Property tax | |
| Home insurance | |
| HOA | |
| PMI | |
| Loan amount | |
| Down payment share | |
| Total interest over the loan | |
| Total of loan payments | |
| Total cost including tax, insurance and HOA |
What else you'll need
| Item | Estimate | How it is derived |
|---|---|---|
| Minimum down payment | 5% of the home price | |
| 20% down payment | 20% of the home price, the point where PMI usually stops | |
| Closing costs | 2% to 5% of the home price | |
| Cash reserve after closing | 6 months of the total payment | |
| Income to keep housing at 28% of gross | Total payment divided by 0.28, then times 12 |
Estimate only. It assumes a fixed rate and fixed tax and insurance, and leaves out closing costs, escrow changes and the year PMI drops off. Not financial advice. All calculations run in your browser; nothing you type is uploaded or stored.
Show the math and the full amortization schedule
Enter the home price, down payment, rate and term to see your monthly payment, the interest you pay over the life of the loan and the full amortization schedule.
Key takeaways
- $2,539 a month on a $400,000 home with 20% down at 6.5% for 30 years
- Principal and interest is $2,023; tax, insurance and PMI make up the rest
- You pay $408,142 in interest over 30 years, more than the loan itself
- A 15-year term at 7.25% lifts the payment to $4,447 and cuts interest to $257,261
- Under 20% down adds PMI of about 0.5% of the loan a year
On this page
The formula behind the monthly payment
A mortgage payment is not a number a lender invents. It comes from one formula, and you can check any quote against it in a minute.
M = P × [ r(1 + r)n ] ÷ [ (1 + r)n - 1 ]
Each letter stands for one thing:
| Symbol | What it means | Example |
|---|---|---|
| M | Monthly principal and interest | The number you are solving for |
| P | Principal, the amount borrowed | $400,000 price - $80,000 down = $320,000 |
| r | Monthly interest rate, the annual rate divided by 12 | 6.5% ÷ 12 = 0.005417 |
| n | Number of monthly payments | 30 years × 12 = 360 |
Work through a $320,000 loan at 6.5% over 30 years. The monthly rate is 0.005417 and there are 360 payments. Raise 1.005417 to the power of 360 and you get 6.99180. Multiply that by the monthly rate to get 0.037872 for the top of the fraction. Subtract 1 from 6.99180 to get 5.99180 for the bottom. Divide the top by the bottom to get a factor of 0.0063207, then multiply by the loan: 320,000 × 0.0063207 = $2,022.62 a month.
Two checks keep the number honest. A 0% loan collapses the formula to P ÷ n, which is $320,000 ÷ 360 = $888.89, so no payment can fall below that floor. And a one point move in the rate shifts the payment on this loan by roughly $200, which is why the rate matters more than the price at the margin.
What makes up a monthly payment
The principal and interest figure is only part of the check you write. A full payment has up to five parts, and only the first is set by the formula above.
| Part | What it covers | Typical size |
|---|---|---|
| Principal | Paying back the money you borrowed | Rises every month |
| Interest | The lender's charge on the remaining balance | Falls every month |
| Property tax | County and school district tax | 0.5% to 2.5% of the value a year |
| Home insurance | Fire, storm and liability cover | $1,500 to $2,500 a year |
| PMI | Mortgage insurance when the down payment is under 20% | 0.3% to 1.5% of the loan a year |
| HOA | Condo or subdivision dues | $0 to $500 a month |
Take a $400,000 home with $80,000 down at 6.5%. Principal and interest is $2,022.62. Add property tax at 1.1% of the price, which is $366.67 a month, and insurance of $1,800 a year, which is $150.00 a month. The payment is $2,539.28. Because the down payment is 20% of the price, there is no PMI.
Now drop the down payment to 5% on a $250,000 home. The loan is $237,500, the principal and interest falls to $1,501.16, and PMI at 0.5% of the loan adds $98.96 a month. With tax at 1.1% ($229.17) and insurance ($150), the payment is $1,979.29. The smaller loan lowers the base payment, and the mortgage insurance takes part of that back.
Three worked examples you can check
Run these three through the calculator above and the numbers match to the cent. They cover a starter loan, a typical loan and a short term on a bigger balance.
| Scenario | Loan | Rate | Term | Principal and interest | Total interest |
|---|---|---|---|---|---|
| Starter home | $237,500 | 6.5% | 30 years | $1,501.16 | $302,918 |
| Typical home | $320,000 | 6.5% | 30 years | $2,022.62 | $408,142 |
| Bigger home, short term | $400,000 | 7.25% | 15 years | $3,651.45 | $257,261 |
The middle row is the one to sit with. A $320,000 loan at 6.5% throws off $408,142 of interest over 30 years, which is more than the amount borrowed. You take $320,000 and hand back $728,142 in total.
The third row shows the trade. The 15-year loan carries $3,651.45 a month, about $1,629 more than the 30-year loan in row two. In return, interest drops to $257,261. Over the life of both loans the 15-year borrower pays roughly $151,000 less interest, but has to find that extra $1,629 every month for 180 months.
Down payment, PMI and the 20% line
The down payment does two jobs at once. It shrinks the loan, and at 20% it removes mortgage insurance.
| Down payment | Loan on a $400,000 home | PMI at 0.5% a year | Monthly principal and interest at 6.5% |
|---|---|---|---|
| 5% | $380,000 | $158.33 | $2,401.86 |
| 10% | $360,000 | $150.00 | $2,275.44 |
| 20% | $320,000 | None | $2,022.62 |
PMI is not permanent. On a conventional loan it usually ends automatically once the balance falls to 78% of the original value, which on a 30-year loan with 10% down takes about seven years of payments. You can ask the lender to cancel it earlier, once the balance reaches 80%.
Two numbers keep the trade-off honest. The first is that 20% down gives the lowest payment per dollar of house, because it removes PMI and shrinks the balance. The second is that closing costs run 2% to 5% of the price, so a $400,000 home needs $8,000 to $20,000 on top of the down payment. Both appear in the What else you'll need table under the calculator.
15-year versus 30-year, and what interest costs
Term length is the biggest lever you control after the rate. The table holds the loan at $320,000 and the rate at 6.5%, and changes only the years.
| Term | Monthly principal and interest | Total interest | Total paid |
|---|---|---|---|
| 30 years | $2,022.62 | $408,142 | $728,142 |
| 20 years | $2,385.83 | $252,600 | $572,600 |
| 15 years | $2,787.54 | $181,758 | $501,758 |
| 10 years | $3,633.54 | $116,024 | $436,024 |
The 30-year loan costs $2,022.62 a month and $408,142 in interest. The 15-year loan costs $2,787.54 a month, which is $764.92 more, and saves $226,384 in interest. That saving is real money, and it comes with a real constraint: the higher payment has to survive a job loss, a medical bill or a market downturn.
A common middle path is to take the 30-year loan for the flexibility and pay extra when things go well. Every extra dollar goes straight at the principal, and the calculator's amortization table shows the balance falling faster when you do that.
How to check a lender's quote line by line
A loan estimate runs to three pages and most of it is boilerplate. Four lines decide whether the offer is good.
The interest rate and the APR. The rate sets the payment. The APR folds in points and fees, so it is always a little higher, and a wide gap between the two means the fees are heavy.
The monthly principal and interest. Put the loan amount, rate and term into the calculator above. If the lender's figure is higher, ask what is in it.
The escrow estimate. Property tax and insurance are collected monthly and held in escrow. These numbers come from the county, so check them against your own tax bill.
Points and closing costs. One point is 1% of the loan and buys the rate down. On a $320,000 loan, one point is $3,200, and it only pays off if you keep the loan long enough to recover it.
The Consumer Financial Protection Bureau's home buying guide walks through the loan estimate form line by line, and its mortgage answers cover escrow, PMI and servicing. For the tax and insurance side, the Department of Housing and Urban Development explains what a buyer needs before closing, and the Federal Trade Commission covers the consumer protections that apply. This page is an estimate for planning, not a loan offer or financial advice.
Frequently asked questions
What is the monthly payment on a $400,000 house?
With 20% down, a $320,000 loan at 6.5% for 30 years costs $2,022.62 in principal and interest. Add 1.1% property tax of $366.67 and $150 for insurance and the payment is $2,539.28 a month. That leaves out HOA dues and any PMI.
How much house can I afford on a $90,000 salary?
The 28% front-end rule allows $2,100 a month for housing, and the 36% back-end rule allows $2,200 after $500 of other debt payments. At a 6.5% rate over 30 years with $40,000 down, a $2,100 payment supports a home price near $304,369.
How is a mortgage payment calculated?
M = P x [r(1+r)^n] / [(1+r)^n - 1]. P is the loan, r is the annual rate divided by 12, and n is the number of monthly payments. On a $320,000 loan at 6.5% for 30 years, r is 0.005417 and n is 360, which gives $2,022.62.
What is the payment on a $250,000 house with 5% down?
The loan is $237,500. At 6.5% for 30 years the principal and interest is $1,501.16. PMI at 0.5% a year adds $98.96, tax at 1.1% adds $229.17 and insurance adds $150, for a total of $1,979.29 a month.
Is it worth paying points to lower the rate?
One point costs 1% of the loan and typically cuts the rate by about 0.25%. On a $320,000 loan a point is $3,200 and saves roughly $50 a month, so it takes about 64 months to break even. Move or refinance sooner and the point loses money.
How much interest do you pay on a 30-year mortgage?
On a $320,000 loan at 6.5%, you pay $408,142 in interest over 30 years, so the total is $728,142. Shorten to 15 years and the interest falls to $257,261, a saving of about $151,000, but the monthly payment rises from $2,022.62 to $3,651.45.
How much do I need for a down payment?
Conventional loans start at 3% to 5% down, FHA loans at 3.5%, and VA loans at 0% for eligible veterans. Below 20% you pay PMI, which runs 0.3% to 1.5% of the loan a year. On a $400,000 home, 5% is $20,000 and 20% is $80,000.
When does PMI go away?
On a conventional loan PMI must end automatically when the balance reaches 78% of the original home value, and you can request cancellation at 80%. On a 30-year loan with 10% down, reaching 78% takes about seven years of payments.
How much are closing costs on a mortgage?
Closing costs run 2% to 5% of the home price. On a $400,000 home that is $8,000 to $20,000, covering the appraisal, title search and insurance, lender fees, recording fees and prepaid tax and insurance. This is separate from the down payment.
Does a bigger down payment lower the monthly payment?
Yes, in two ways. Every extra dollar cuts the loan, and reaching 20% removes PMI. On a $400,000 home, moving from 5% down to 20% cuts the loan from $380,000 to $320,000, drops PMI of $158.33 a month and lowers principal and interest from $2,401.86 to $2,022.62.
What happens if I pay extra each month?
Extra money goes straight at the principal, so the loan ends early and the interest bill shrinks. On a $320,000 loan at 6.5%, an extra $200 a month clears it in about 23 years instead of 30 and saves roughly $105,000 in interest.
Is a mortgage calculator accurate?
It is accurate for principal and interest, because that part is pure arithmetic. Tax, insurance, HOA and PMI are estimates that depend on your county, your insurer and your lender. Use the payment as a planning number, then confirm the final figures on the loan estimate.
Spotted a wrong number or a broken result?
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Fee schedules, rates and rules change without notice. Always confirm important figures with the official source before you rely on them.