How much is the monthly payment on a mortgage?
On a $300,000 loan at 6.5% for 30 years, principal and interest come to $1,896 a month. That's only part of the bill. Lenders call the full payment PITI: principal, interest, taxes, and insurance. Some homes add mortgage insurance and HOA dues. Only principal and interest stay fixed on a fixed-rate loan, so your total can rise when tax bills and premiums do.
| Loan amount | 5.5% | 6% | 6.5% | 7% | 7.5% |
|---|---|---|---|---|---|
| $200,000 | $1,136 | $1,199 | $1,264 | $1,331 | $1,398 |
| $250,000 | $1,419 | $1,499 | $1,580 | $1,663 | $1,748 |
| $300,000 | $1,703 | $1,799 | $1,896 | $1,996 | $2,098 |
| $350,000 | $1,987 | $2,098 | $2,212 | $2,329 | $2,447 |
| $400,000 | $2,271 | $2,398 | $2,528 | $2,661 | $2,797 |
| $500,000 | $2,839 | $2,998 | $3,160 | $3,327 | $3,496 |
| $600,000 | $3,407 | $3,597 | $3,792 | $3,992 | $4,195 |
| $750,000 | $4,258 | $4,497 | $4,741 | $4,990 | $5,244 |
Half a point matters more than it looks. On a $320,000 loan, going from 6.5% to 7% adds $106 a month, every month, for 30 years.
What is the payment on a $300,000 or $400,000 home with taxes and insurance?
A $300,000 home comes to about $1,942 a month and a $400,000 home about $2,539, with the assumptions below. Swap in your county's tax rate and a real insurance quote, since those two inputs are guesses until you check them.
| Home price | Principal & interest | Property tax | Insurance | Total a month |
|---|---|---|---|---|
| $250,000 | $1,264 | $229 | $150 | $1,643 |
| $300,000 | $1,517 | $275 | $150 | $1,942 |
| $350,000 | $1,770 | $321 | $150 | $2,241 |
| $400,000 | $2,023 | $367 | $150 | $2,539 |
| $500,000 | $2,528 | $458 | $150 | $3,137 |
| $600,000 | $3,034 | $550 | $150 | $3,734 |
| $750,000 | $3,792 | $688 | $150 | $4,630 |
The trap is the tax rate. The mortgage math is the same in Texas, California, Ohio, or anywhere else in the US, so a state-specific calculator mostly differs in this one input. On the same $400,000 home, moving the rate from 0.5% to 2.5% adds $667 a month without changing the loan at all.
| Property tax rate | Tax a month | Total a month |
|---|---|---|
| 0.5% | $167 | $2,339 |
| 1% | $333 | $2,506 |
| 1.5% | $500 | $2,673 |
| 2% | $667 | $2,839 |
| 2.5% | $833 | $3,006 |
The mortgage payment formula, worked through
A fixed-rate mortgage uses the standard amortization formula, where M is the monthly payment, P the loan amount, r the monthly rate (annual rate divided by 12), and n the number of payments.
M = P × r(1 + r)^n ÷ ((1 + r)^n − 1)For a $320,000 loan at 6.5% over 30 years, r is 0.005417 and n is 360, which gives a payment of $2,023. In the first month, $1,733 goes to interest and only $289 to principal, because interest is charged on the whole balance. That split slowly reverses.
Over the first year you'd pay $20,695 in interest and reduce the loan by just $3,577. Over the full term you'd pay $408,141 in interest, more than the amount you borrowed. This schedule rounds interest to the cent each month and adjusts the last payment, so your servicer's figures may differ by a few cents.
Three ways to pay less for the same home
- Shorter term. If a 15-year loan came with a rate half a point lower (an example, not a quote), you'd pay $166,062 in interest instead of $408,141. The catch is a payment of $2,700 instead of $2,023.
- Extra payments. Adding $200 a month to this loan saves $105,428 and finishes 6 yrs 7 mos early. You also keep the flexibility to stop. Our mortgage payoff calculator tests other amounts and lump sums.
- A better rate. Get Loan Estimates from several lenders on the same day for the same kind of loan and compare them line by line. Comparing the rate alone can hide points and fees.
What PMI, FHA, and VA do to the payment with a small down payment
A smaller down payment raises the payment twice: a bigger loan, then insurance or a fee on top. On a $400,000 home, the difference between 20% down and 5% down is $569 a month with a 0.6% PMI rate, which is an example you should replace with your lender's quote.
| Loan type and down payment | Loan amount | Mortgage insurance a month | Total a month | Insurance ends |
|---|---|---|---|---|
| Conventional, 20% | $320,000 | $0 | $2,539 | Not charged |
| Conventional, 5% | $380,000 | $190 | $3,109 | After about 11 yrs 3 mos |
| FHA, 3.5% | $392,755 | $177 | $3,176 | Life of the loan |
| VA, 0%, first use | $408,600 | $0 | $3,099 | Not charged |
Conventional loans. Under the Homeowners Protection Act you can ask in writing to cancel PMI when your balance reaches 80% of the home's original value, if you meet conditions such as a good payment history. It generally ends automatically at 78% if you're current, and no later than the midpoint of the loan.
FHA loans. You pay a 1.75% upfront premium, $6,755 in this example, plus an annual premium. With 10% or more down the annual premium lasts 11 years. With less, it lasts the whole term, so it won't drop off the way PMI does. Those are the rates in HUD's 2023 letter for base loans up to $726,200. Larger FHA loans cost more, and this calculator doesn't model that.
VA loans. There's no monthly mortgage insurance and no required down payment if the price isn't above the appraised value. There is a funding fee, $8,600 here at 2.15% for first use with under 5% down. Some borrowers are exempt, such as those receiving VA disability compensation.
When this estimate will be wrong
Taxes and insurance are held flat here, though both can rise. This calculator can't see your credit score, your lender's fees, or your exact tax bill. The rate you enter is taken at face value, even if it depends on paying points. It also assumes a fixed rate, so don't use it for an adjustable-rate loan beyond the first period. The PMI, FHA, and VA settings are meant for buying a home, so if you're financing land, a manufactured home, or a rental, get those terms from the lender.
When you're ready to compare offers, your lender's Loan Estimate is the document to rely on. A HUD-approved housing counselor can go through it with you, often at little or no cost. For the full picture on a first purchase, read the numbers behind your first home.
Common questions
What is a good rule for how much mortgage I can afford?
A common rule of thumb keeps housing near 28% of gross income and all debts under 36%. Lenders may allow more, and what they approve can exceed what fits your budget. Our home affordability calculator works it out for your income.
How much do I need to put down?
Not always 20%. The Consumer Financial Protection Bureau (CFPB) says that in most cases you need at least 3%, and many loans and lenders want 5% or more. FHA requires at least 3.5%. VA loans can require nothing for eligible borrowers. A smaller down payment means a larger loan and, on most loans, mortgage insurance.
Does this include closing costs?
No. The CFPB says closing costs typically run 2% to 5% of the purchase price, not counting your down payment. On a $400,000 home, that's $8,000 to $20,000 in cash on top. Your Loan Estimate itemizes them.
Why is my actual payment different from this estimate?
Your escrow account pays actual tax and insurance bills, and your payment goes up or down when they do. Your rate may also differ once locked, and your lender may round or date payments differently.
How do I see how much interest I will pay, or how many years are left?
The results above show total interest and a payoff date for a new loan. If you already have a mortgage, enter your current balance and years left in the mortgage payoff calculator instead.
Can I see the amortization schedule?
Yes. The calculator shows it by year and by payment, and you can download either as a CSV to open in a spreadsheet.
Sources
- When can I remove private mortgage insurance (PMI) from my loan? · Consumer Financial Protection Bureau
- Mortgagee Letter 2023-05: FHA annual mortgage insurance premiums · U.S. Department of Housing and Urban Development
- FHA Single Family Housing Policy Handbook 4000.1 · U.S. Department of Housing and Urban Development
- VA funding fee and loan closing costs · U.S. Department of Veterans Affairs
- Figure out how much you want to spend · Consumer Financial Protection Bureau
- Determine your down payment · Consumer Financial Protection Bureau