Mortgage calculator
Start with the payment you can realistically live with, not the biggest loan a lender may approve. Change the home price, down payment, interest rate and term below to see how quickly the monthly payment moves.
Monthly Mortgage Calculator
Estimate principal, interest and common housing costs.
Estimated total monthly payment
Principal + interest + taxes + insurance + HOA + entered mortgage insurance
Loan amount
$320,000
Principal + interest
$2,189
Taxes + insurance
$550
Total interest over term
$468,213
This calculator is an estimate. It does not include closing costs, lender fees, points, changing taxes/insurance, or every type of mortgage insurance. Your actual lender payment may differ.
Current rate context — October 2026
Freddie Mac reported an average 7.28% rate for a 30-year fixed mortgage and 6.60% for a 15-year fixed mortgage as of October 1, 2026. Those are national survey averages, not rates every borrower will receive.
A mortgage calculator is useful because a home price by itself tells you almost nothing about the payment you will actually live with.
A $400,000 home might mean a loan of $320,000 after a 20% down payment. At a 7.28% 30-year rate, principal and interest alone are about $2,189 per month. Add property taxes and homeowners insurance, and the real housing payment can be hundreds of dollars higher.
That gap is where many first-time buyers get surprised.
What Does a Mortgage Calculator Include?
The basic mortgage formula calculates principal and interest. That is the core loan payment, but it is not always the amount leaving your bank account each month.
The Consumer Financial Protection Bureau explains that the total monthly payment often includes property taxes, homeowners insurance and, when applicable, mortgage insurance in addition to principal and interest.
A more realistic monthly housing payment
Principal + Interest
+ Property taxes
+ Homeowners insurance
+ Mortgage insurance, if applicable
+ HOA dues, if applicable
That is why the calculator at the top lets you add taxes, insurance, HOA dues and mortgage insurance instead of showing only a bare loan payment.
How the Mortgage Payment Is Calculated
For a fixed-rate mortgage, the principal-and-interest payment is based on four things:
- Loan amount: home price minus your down payment.
- Interest rate: the annual mortgage rate converted to a monthly rate.
- Loan term: how many years you have to repay the loan.
- Number of payments: usually 360 payments for a 30-year mortgage or 180 for a 15-year mortgage.
A fixed-rate mortgage is amortized so that the scheduled principal-and-interest payment stays the same over the loan term. Early in the loan, more of that payment goes to interest. Later, more goes toward principal.
Mortgage Payment Example: $400,000 Home
Consider a buyer looking at a $400,000 home with a 20% down payment.
| Item | Example |
|---|---|
| Home price | $400,000 |
| Down payment | $80,000 |
| Loan amount | $320,000 |
| Interest rate | 7.28% |
| Loan term | 30 years |
| Principal + interest | ~$2,189/month |
| Property tax + insurance example | ~$550/month |
That puts the illustrative total at about $2,739 per month before HOA dues or mortgage insurance.
The important point is not that $2,739 is the “right” payment for a $400,000 house. Taxes and insurance vary widely by location, and your mortgage rate may be different. The example simply shows why looking only at home price or principal-and-interest can understate the real monthly cost.
30-Year vs 15-Year Mortgage
A shorter mortgage can save a large amount of interest, but the required monthly payment is much higher.
| Feature | 30-Year Fixed | 15-Year Fixed |
|---|---|---|
| Monthly payment | Lower | Higher |
| Total interest | Usually much higher over the full term | Usually much lower |
| Payment flexibility | More breathing room each month | Less monthly flexibility |
| Best fit | Buyers prioritizing a manageable required payment | Borrowers who can comfortably support a larger payment and want faster payoff |
As of October 1, 2026, Freddie Mac’s national survey showed the 15-year fixed rate at 6.60%, compared with 7.28% for the 30-year fixed rate.
A lower 15-year rate helps, but the shorter repayment period is the bigger reason total interest can be much lower.
Why Mortgage Rates Matter So Much
Home buyers often focus on negotiating $5,000 or $10,000 off the purchase price while underestimating what a change in the interest rate can do over 30 years.
Mortgage rates moved sharply higher at the start of October 2026. Freddie Mac’s 30-year average rose from 7.03% on September 24 to 7.28% on October 1. Reuters described it as the largest weekly increase in four years.
A small rate change is not small over 30 years
Use the calculator above and change only the interest rate. Even a fraction of a percentage point can noticeably change the payment and the total interest paid over a long loan.
Your personal mortgage rate will not necessarily equal the Freddie Mac average. Credit profile, down payment, loan type, points, lender pricing, property type and other factors can all affect the quote.
How Much House Can You Afford?
A mortgage calculator can show whether a payment is mathematically possible. It cannot tell you whether that payment leaves enough room for the rest of your life.
Before deciding a home is affordable, look beyond the mortgage:
- Utilities
- Repairs and maintenance
- HOA dues
- Property-tax increases
- Homeowners-insurance increases
- Emergency savings
- Car payments, student loans and other debt
- Retirement and other savings goals
A lender’s maximum approval amount is based on underwriting rules. Your personal comfort level may be lower, and there is nothing wrong with that.
How Down Payment Changes the Mortgage
A larger down payment reduces the amount you borrow, which directly lowers principal and interest.
It can also affect mortgage insurance and the interest rate offered to you.
Larger down payment
Smaller loan balance, lower monthly principal and interest, and potentially less or no private mortgage insurance depending on the loan.
Smaller down payment
Keeps more cash available but creates a larger loan and may add mortgage-insurance costs on some loans.
Putting every available dollar into the down payment can also leave a buyer short of cash for closing costs, moving expenses or repairs. The “best” down payment is therefore not always simply the largest possible number.
What Is PMI?
Private mortgage insurance, commonly called PMI, may be required on certain conventional mortgages when the borrower has less equity in the home.
PMI protects the lender, not the borrower, against certain losses if the borrower defaults.
The exact cost depends on the mortgage and borrower profile, so the calculator above leaves PMI as a separate field rather than pretending one percentage fits everyone.
FHA, VA and other loan programs have their own insurance or funding-fee structures, so they should be calculated using the rules for that specific loan type.
Should You Pay Mortgage Points?
A discount point is generally an upfront fee paid to obtain a lower mortgage interest rate. One point typically equals 1% of the loan amount, although the exact rate reduction associated with a point varies.
Whether points make sense depends largely on how long you expect to keep the mortgage.
For example, if buying points costs $4,000 and saves $80 per month, the simple break-even period is 50 months. If you sell or refinance before then, you may not recover the upfront cost through monthly savings.
Compare the Loan Estimate, not just the advertised rate
A lower quoted interest rate may come with more upfront points or lender fees. Compare rate, APR, closing costs and the actual monthly payment on the written Loan Estimates you receive.
Mortgage Calculator vs APR
The calculator uses the interest rate to estimate principal and interest.
APR, or annual percentage rate, is a broader measure designed to reflect the interest rate plus certain loan costs. It can help when comparing mortgage offers, but APR is not normally the number used to calculate the scheduled principal-and-interest payment.
That is why two lenders may advertise similar interest rates but show different APRs.
How to Compare Mortgage Quotes
Freddie Mac itself encourages borrowers to shop around, because obtaining multiple quotes can potentially save thousands of dollars.
When comparing lenders, try to request quotes close together in time because mortgage markets can move quickly.
- Use the same loan amount and down payment.
- Compare the same loan type and term.
- Check whether the quoted rate includes points.
- Compare lender fees and total closing costs.
- Compare APR as well as the note rate.
- Check whether the rate is locked, and for how long.
- Use the written Loan Estimate for the final comparison.
What the Calculator Does Not Know
No online mortgage calculator can see your complete financial situation.
The estimate at the top does not automatically know:
- The exact property-tax rate for the home.
- Your final homeowners-insurance premium.
- Whether PMI or another mortgage-insurance charge applies.
- Closing costs and lender fees.
- Discount points.
- Whether an HOA will increase its dues.
- Future changes in taxes or insurance.
Use the calculator for planning, then use the lender’s Loan Estimate and actual property information before making a final decision.
Frequently Asked Questions About Mortgage Calculators
How do I calculate my monthly mortgage payment?
Enter the home price, subtract the down payment to get the loan amount, then use the interest rate and loan term to calculate principal and interest. Add monthly property taxes, homeowners insurance, mortgage insurance and HOA dues for a more complete housing-payment estimate.
What is the current 30-year mortgage rate?
Freddie Mac reported an average 7.28% 30-year fixed mortgage rate as of October 1, 2026. Your personal rate can be higher or lower depending on the loan, lender and borrower profile.
What is the current 15-year mortgage rate?
Freddie Mac’s average 15-year fixed mortgage rate was 6.60% as of October 1, 2026.
Does a mortgage calculator include taxes and insurance?
Some calculators show only principal and interest. The calculator on this page allows you to enter annual property taxes, annual homeowners insurance, monthly HOA dues and monthly mortgage insurance so the estimate is closer to a real housing payment.
How much is the payment on a $400,000 house?
It depends on the down payment, rate, term, taxes and insurance. As an illustration, a $400,000 home with 20% down creates a $320,000 loan. At 7.28% for 30 years, principal and interest are about $2,189 per month before taxes, insurance and other housing costs.
Is a 15-year mortgage cheaper than a 30-year mortgage?
A 15-year loan usually costs much less in total interest but requires a substantially higher monthly payment because the balance is repaid in half the time. “Cheaper” therefore depends on whether you mean monthly cash flow or total borrowing cost.
How much should I put down on a house?
There is no single down payment that is best for every buyer. A larger down payment reduces the loan and may reduce mortgage-insurance costs, but keeping sufficient cash for closing costs, emergencies and repairs also matters.
Why is my lender’s monthly payment higher than a calculator?
The lender may be including property taxes, homeowners insurance, mortgage insurance or other escrowed amounts. CFPB notes that the total monthly mortgage payment commonly includes more than principal and interest.
What is amortization?
Amortization is the process of repaying a loan through scheduled payments over time. On a typical fixed-rate mortgage, more of the early payments go toward interest, while the principal portion gradually increases.
Should I use interest rate or APR in a mortgage calculator?
Use the mortgage interest rate to estimate the scheduled principal-and-interest payment. APR is useful for comparing the broader cost of loan offers because it incorporates certain additional costs.
The Bottom Line
A good mortgage calculator should answer more than “What is the principal-and-interest payment?”
The number that matters to a household budget is closer to the amount that actually leaves your account after taxes, insurance, mortgage insurance and HOA dues are included.
With mortgage rates at 7.28% for the average 30-year fixed loan in Freddie Mac’s October 1 survey, small changes in the interest rate or loan amount can have a very visible effect on monthly affordability.
Use the calculator to test several scenarios. Reduce the home price. Increase the down payment. Try a 15-year term. Move the interest rate up and down.
If a purchase only feels affordable when every assumption is unusually optimistic, that is useful information before you sign a contract — not after.
Related guides
Building a broader financial plan? You can also read our Insurance Guides.
Sources & Further Reading
- Freddie Mac — Current Mortgage Rates
- Freddie Mac — Primary Mortgage Market Survey
- Consumer Financial Protection Bureau — Understanding the Total Monthly Mortgage Payment
- Consumer Financial Protection Bureau — Loan Estimate
- Reuters — U.S. Mortgage Rates, October 1, 2026
This calculator and article are for general educational and planning purposes. They are not a loan quote, credit decision or financial recommendation. Mortgage rates, taxes, insurance, closing costs and eligibility vary by borrower, lender and property.