US Mortgage Calculator 2026
Monthly payment with PMI (if <20% down), property tax, insurance. Full amortization details.
On a $400,000 home with 20% down ($80,000) and a 6.8% rate, your monthly principal and interest payment is approximately $2,091. Add property tax (~$400/mo) and homeowner's insurance (~$125/mo) for a total housing payment of ~$2,616. PMI is not required with 20% down.
Monthly P&I
$2,086.16
PMI (if applicable)
None (≥20% down)
Property Tax (est.)
$400.00/mo
Total Monthly Payment
$2,611.16
Total Interest Paid
$431,017.82
Loan Amount
$320,000.00
PMI (~0.5–1%) required for down payments under 20%. Property tax estimated at 1.2% annually.
PMI (~0.5–1%) required for down payments under 20%. Property tax estimated at 1.2% annually.
About This Calculator
A mortgage is the largest debt most Americans will ever carry. Understanding your true monthly payment — principal, interest, property tax, insurance, and PMI — is essential before purchasing.
The interest rate has an outsized effect on total cost. A $400,000 loan at 7% over 30 years costs $559,000 in total interest. At 6%, that same loan costs $464,000 — a $95,000 difference from a single percentage point.
Down payment size determines two things: whether you need Private Mortgage Insurance (PMI adds 0.5–1% annually) and your loan balance. Putting 20% down eliminates PMI and reduces your loan by that amount. However, with high home prices, many first-time buyers use 3–10% down programs (FHA, Fannie/Freddie) to enter homeownership sooner.
The 28/36 rule is lenders' traditional guideline: housing costs should not exceed 28% of gross monthly income, and total debt payments should not exceed 36%. At $120,000 annual income ($10,000/mo gross), that means a maximum housing payment of $2,800.
How to Use
- 1Enter the home price and your planned down payment percentage (20% avoids PMI).
- 2Select your loan term — 30-year has lower monthly payments but costs more in interest; 15-year saves significantly on total interest.
- 3Enter the current interest rate. Check Freddie Mac's weekly survey for current averages.
- 4Review your monthly payment breakdown: principal/interest, PMI (if applicable), property tax, and total payment.
- 5Use the total interest figure to compare 15 vs 30-year terms or evaluate refinancing scenarios.
Formula & Methodology
Monthly P&I = P × [r(1+r)^n] / [(1+r)^n − 1], where P = loan amount, r = monthly interest rate (annual rate ÷ 12), n = total months (term × 12). PMI = loan amount × 0.0075 ÷ 12 (if down payment < 20%). Property tax estimated at 1.2% annually.
Frequently Asked Questions
What is the monthly payment on a $300,000 mortgage?
At 6.8% with 20% down ($60K), the loan is $240,000. Monthly P&I: approximately $1,568. Add property tax (~$300/mo) and insurance (~$100/mo) for total monthly housing cost of ~$1,968. At 7.0%, the P&I rises to $1,597/month.
How much do I need to make to afford a $400,000 house?
Using the 28% housing-to-income rule: total monthly payment on a $400K home (20% down, 6.8% rate) is approximately $2,616. To keep housing under 28% of gross income, you'd need about $9,343/month ($112,000/year) in gross income. At 10% down, PMI adds ~$170/month, raising the income needed to ~$125,000/year.
Should I choose a 15-year or 30-year mortgage?
A 15-year mortgage has a higher monthly payment but typically 0.5–0.75% lower interest rate and saves massive amounts in total interest. On a $300K loan: 30-year at 6.8% pays ~$385,000 in interest; 15-year at 6.25% pays ~$155,000 — saving $230,000. Choose 30-year if you need lower payments or plan to invest the difference in higher-return assets.
What is PMI and how do I avoid it?
Private Mortgage Insurance (PMI) is required when your down payment is less than 20% of the home price. It typically costs 0.5–1% of the loan amount annually ($1,500–$3,000/year on a $300K loan). Avoid it by: (1) putting 20% down, (2) getting a piggyback loan (80-10-10), or (3) using VA or USDA loans (no PMI for eligible buyers). PMI automatically cancels when your equity reaches 22%.
How does my credit score affect my mortgage rate?
Mortgage rates vary significantly by credit score. According to CFPB data, borrowers with 760+ scores typically get 0.5–0.75% lower rates than those with 680–699 scores. On a $400K, 30-year mortgage, that's approximately $100–$150/month in savings — or $36,000–$54,000 over the life of the loan.
What are closing costs on a mortgage?
Closing costs typically run 2–5% of the loan amount — $6,000–$15,000 on a $300K loan. They include origination fees (0.5–1%), appraisal ($300–$600), title insurance ($1,000–$2,000), prepaid interest, and property taxes. Some lenders offer "no-closing-cost" loans at a higher interest rate.
Sources & References
- CFPB — Mortgage Calculator Guide
- Freddie Mac — Primary Mortgage Market Survey
- HUD — FHA Loan Information
Last updated: 2026-04-12