Free Mortgage Calculator

Your monthly mortgage payment breaks down into four parts, often called PITI:

• Principal – The portion that reduces your loan balance. Early in your loan, this is small. By year 20 of a 30-year mortgage, most of your payment goes here.
• Interest – What the lender charges for lending you money. On a $400,000 loan at 6.5%, you pay $2,167 in interest the first month alone.
• Taxes – Property taxes collected monthly and held in an escrow account. Your lender pays the county on your behalf.
• Insurance – Homeowner's insurance protects against damage and liability. Flood or earthquake coverage costs extra in high-risk areas.

On a $400,000 loan at 6.5% interest, the principal and interest payment is $2,528 per month. Add $350 for property taxes and $125 for insurance, and your total payment reaches $3,003. That's the number that matters for your budget.

Most buyers focus on the home price, but monthly payment determines what you can actually afford. A $450,000 home at 5.5% costs less per month than a $400,000 home at 7.0%. The calculator above shows you exactly how these numbers interact.

Enter your loan details to see your monthly payment instantly. Here's what each field means:

• Loan Amount – The amount you're borrowing, not the home price. If you're buying a $500,000 home with 20% down ($100,000), your loan amount is $400,000.
• Interest Rate – The annual rate from your lender. We pre-fill the current national average, but your actual rate depends on your credit score, down payment, and loan type.
• Term – How long you have to repay. 30 years is standard. 15-year loans have higher monthly payments but save tens of thousands in interest.
• Property Taxes – Varies wildly by location. Texas averages 1.8% of home value annually. Hawaii averages 0.29%. Look up your county's rate or check recent listings in your target area.
• PMI – Private mortgage insurance is required when your down payment is less than 20%. It typically costs 0.5% to 1% of the loan amount per year.

Click “Calculate” to see your payment breakdown. The amortization schedule shows exactly how much goes to principal versus interest each month over the life of your loan.

The calculator shows more than just your monthly payment. Here's how to interpret each number:

Total Interest Paid tells you the true cost of borrowing. A $400,000 loan at 6.5% for 30 years costs $510,177 in interest—more than the original loan amount. At 5.5%, that drops to $417,715. A 1% rate difference saves you $92,462 over the life of the loan.

The 28/36 Rule helps you gauge affordability. Lenders prefer your housing payment (including taxes and insurance) to stay below 28% of gross monthly income. Total debt payments should stay below 36%. If you earn $8,000/month gross, aim for a housing payment under $2,240.

Extra Payments have an outsized impact early in your loan. Adding $200/month to a $400,000 loan at 6.5% cuts 5 years off your mortgage and saves $98,000 in interest. The amortization schedule shows exactly when you'd be debt-free.

Watch for Red Flags. If your calculated payment exceeds 30% of your take-home pay, you'll feel stretched. Leave room for maintenance (budget 1% of home value annually), utilities, and unexpected repairs.

Once you have a target payment in mind, take these steps:

Get pre-approved, not just pre-qualified. Pre-qualification is a rough estimate based on what you tell the lender. Pre-approval involves a credit check and income verification. Sellers take pre-approved buyers seriously because the financing is more certain.

Shop at least three lenders. Rates vary by 0.5% or more between lenders on the same day for the same borrower. On a $400,000 loan, that's $120/month. Get quotes from a big bank, a credit union, and an online lender. Compare the APR, which includes fees, not just the interest rate.

Lock your rate at the right time. Mortgage rates change daily. Once you're under contract on a home, lock your rate to protect against increases. Most locks last 30-60 days. If rates drop significantly before closing, ask about a float-down option.

Check our state mortgage guides for local programs. Many states offer down payment assistance, tax credits, or below-market rates for first-time buyers, teachers, veterans, and other groups. Our complete mortgage guide walks through every step of the process.