Where do these numbers come from?
- Freddie MacPrimary Mortgage Market Survey: 30-yr fixed 7.32%, 15-yr 6.68%week of Oct 22, 2026
- U.S. Census BureauACS 5-year table B25103, property taxes paid by ZIP2020–2024 estimates
- U.S. Census BureauACS 5-year table B25077, median home value2020–2024 estimates
- CFPBWhen PMI must be removed (Homeowners Protection Act, 78% LTV)accessed Oct 23, 2026
- Insurance Information InstituteAverage homeowners (HO-3) premiumaccessed Oct 23, 2026
Checked Oct 23, 2026. $320,000 borrowed at 6.5% for 30 years: this calculator gives $2,022.62 a month in principal and interest, and =PMT(6.5%/12; 360; -320000) in LibreOffice Calc (the same PMT function as Excel and Google Sheets) returns 2,022.62. At this week's Freddie Mac average of 7.32% both give $2,198.18.
How to use this calculator
- Enter the home price, your down payment as a percentage and the interest rate from your quote.
- Type your 5-digit ZIP code to fill in the local property tax rate from Census data, or enter your own rate.
- Pick a loan term: 30, 20, 15 or 10 years.
- Adjust insurance, PMI and HOA dues if you know them.
- Add an extra monthly or yearly payment to see the interest saved and the new payoff date.
- Open the amortization schedule or download it as a CSV file.
- Instant answersResults update as you type.
- Private by designRuns in your browser. Nothing is sent.
- Share, print or citeCopy a link with your numbers.
What your monthly payment includes
Most lenders collect four things each month, often called PITI: principal (paying down the loan), interest, property tax and homeowners insurance, the last two held in an escrow account. With less than 20% down on a conventional loan you usually also pay private mortgage insurance (PMI), and condos or planned communities may add HOA dues. The calculator above shows each part separately so you can see which one drives the total.
How each number is estimated
- Principal and interest: the standard amortization formula M = P × r ÷ (1 − (1 + r)−n), where P is the loan amount, r the monthly rate and n the number of payments. Example: $320,000 at 6.5% for 30 years gives $2,022.62 a month.
- Property tax: enter a ZIP and we look up the effective rate (median tax paid ÷ median home value) for that ZIP Code Tabulation Area from the Census Bureau's American Community Survey, 2020–2024. Coverage: 29,350 ZIP areas; if a ZIP has no estimate we use its 3-digit area median, then the U.S. rate of 0.94%.
- Homeowners insurance: defaults to $1,569 a year, the national average HO-3 premium reported by the NAIC (2022 data, published 2025 via the Insurance Information Institute). Replace it with your quote.
- PMI: if you leave it blank we estimate it from your down payment, from about 0.84% a year of the loan at 3% down to 0.36% just under 20% down, in line with Freddie Mac's guide of roughly $30–$70 a month per $100,000 borrowed. PMI is dropped when the balance reaches 78% of the original price, the automatic cancellation point under the Homeowners Protection Act. FHA loans use a different premium (MIP).
- Extra payments: extra money goes straight to principal, so every later payment carries less interest. The schedule recalculates month by month and shows the interest saved and the new payoff date.
15-year vs 30-year: what the term really costs
| Term | Payment on $320,000 at 6.5% | Total interest |
|---|---|---|
| 30 years | $2,022.62 | $408,142 |
| 20 years | $2,385.83 | $252,600 |
| 15 years | $2,787.54 | $181,758 |
| 10 years | $3,633.54 | $116,024 |
A shorter term means a higher payment but far less interest, because the balance falls faster. The calculator's term comparison does this for your own numbers.
Property tax by state
The ten states with the highest effective property tax rates (Census ACS 2020–2024). See all states and look up any ZIP on the property tax by state page.
| Rank | State | Effective rate | Median tax paid | Median home value | Tax on a $400k home |
|---|---|---|---|---|---|
| 1 | New Jersey | 2.11% | $9,590 | $454,400 | $8,440 |
| 2 | Illinois | 2.01% | $5,298 | $263,300 | $8,040 |
| 3 | Connecticut | 1.81% | $6,643 | $366,900 | $7,240 |
| 4 | New Hampshire | 1.66% | $6,667 | $402,500 | $6,640 |
| 5 | Vermont | 1.59% | $5,039 | $316,600 | $6,360 |
| 6 | New York | 1.55% | $6,582 | $423,800 | $6,200 |
| 7 | Nebraska | 1.49% | $3,549 | $238,600 | $5,960 |
| 8 | Texas | 1.49% | $4,232 | $283,800 | $5,960 |
| 9 | Wisconsin | 1.42% | $3,792 | $266,500 | $5,680 |
| 10 | Iowa | 1.39% | $2,897 | $208,000 | $5,560 |
Source: U.S. Census Bureau, American Community Survey 2020–2024 5-year estimates, tables B25103 (median real estate taxes paid) and B25077 (median value of owner-occupied homes). Effective rate = median tax ÷ median value; your bill depends on your assessment, exemptions and local levies.
Payment by loan amount
- $100,000 mortgage$632.07/mo at 6.5%
- $125,000 mortgage$790.09/mo at 6.5%
- $150,000 mortgage$948.10/mo at 6.5%
- $175,000 mortgage$1,106.12/mo at 6.5%
- $200,000 mortgage$1,264.14/mo at 6.5%
- $225,000 mortgage$1,422.15/mo at 6.5%
- $250,000 mortgage$1,580.17/mo at 6.5%
- $275,000 mortgage$1,738.19/mo at 6.5%
- $300,000 mortgage$1,896.20/mo at 6.5%
- $325,000 mortgage$2,054.22/mo at 6.5%
- $350,000 mortgage$2,212.24/mo at 6.5%
- $375,000 mortgage$2,370.26/mo at 6.5%
- $400,000 mortgage$2,528.27/mo at 6.5%
- $425,000 mortgage$2,686.29/mo at 6.5%
- $450,000 mortgage$2,844.31/mo at 6.5%
- $475,000 mortgage$3,002.32/mo at 6.5%
- $500,000 mortgage$3,160.34/mo at 6.5%
- $525,000 mortgage$3,318.36/mo at 6.5%
- $550,000 mortgage$3,476.37/mo at 6.5%
- $575,000 mortgage$3,634.39/mo at 6.5%
- $600,000 mortgage$3,792.41/mo at 6.5%
- $625,000 mortgage$3,950.43/mo at 6.5%
- $650,000 mortgage$4,108.44/mo at 6.5%
- $675,000 mortgage$4,266.46/mo at 6.5%
- $700,000 mortgage$4,424.48/mo at 6.5%
- $725,000 mortgage$4,582.49/mo at 6.5%
- $750,000 mortgage$4,740.51/mo at 6.5%
- $775,000 mortgage$4,898.53/mo at 6.5%
- $800,000 mortgage$5,056.54/mo at 6.5%
- $825,000 mortgage$5,214.56/mo at 6.5%
- $850,000 mortgage$5,372.58/mo at 6.5%
- $875,000 mortgage$5,530.60/mo at 6.5%
- $900,000 mortgage$5,688.61/mo at 6.5%
- $925,000 mortgage$5,846.63/mo at 6.5%
- $950,000 mortgage$6,004.65/mo at 6.5%
- $975,000 mortgage$6,162.66/mo at 6.5%
- $1,000,000 mortgage$6,320.68/mo at 6.5%
Rates in the tables are a range for comparison, not current market quotes. Payments are principal and interest only unless stated.
Mortgage terms in plain English
| Term | What it means |
|---|---|
| PITI | Principal, interest, taxes and insurance: the four parts of a typical monthly payment when taxes and insurance are paid through escrow. |
| Escrow | An account your loan servicer uses to collect about 1/12 of your yearly property tax and insurance each month and pay those bills when they are due. |
| PMI | Private mortgage insurance on a conventional loan with less than 20% down. It protects the lender, not you. |
| LTV | Loan-to-value: the loan balance divided by the home’s original value. PMI must end automatically at 78% LTV on schedule. |
| HOA dues | Homeowners association fees, usually paid to the association directly rather than through the mortgage. |
| Amortization | The schedule that splits each payment between interest and principal; early payments are mostly interest. |
Monthly payment by interest rate
Small rate changes move the payment more than most people expect. The table below uses the same formula as the calculator, on a $320,000 loan (a $400,000 home with 20% down). Taxes, insurance and PMI are not included here, so compare these figures with the principal and interest line of your result.
| Rate | 30-yr payment | 30-yr interest | 15-yr payment | 15-yr interest |
|---|---|---|---|---|
| 5.0% | $1,717.83 | $298,419 | $2,530.54 | $135,497 |
| 5.5% | $1,816.92 | $334,093 | $2,614.67 | $150,640 |
| 6.0% | $1,918.56 | $370,682 | $2,700.34 | $166,062 |
| 6.5% | $2,022.62 | $408,142 | $2,787.54 | $181,758 |
| 7.0% | $2,128.97 | $446,428 | $2,876.25 | $197,725 |
| 7.5% | $2,237.49 | $485,495 | $2,966.44 | $213,959 |
| 8.0% | $2,348.05 | $525,297 | $3,058.09 | $230,456 |
Each half-point of rate adds roughly $100 to $110 a month to the 30-year payment on this loan. The 15-year loan costs more each month but cuts total interest by more than half at every rate shown, because the balance is paid down faster and interest is charged on a smaller balance each month.
How your down payment changes the payment
A bigger down payment lowers the loan amount, the monthly payment and the total interest. On a conventional loan it also decides whether you pay private mortgage insurance (PMI). PMI is usually required when you put down less than 20%. Under the federal Homeowners Protection Act, you can ask your lender to cancel it once the balance reaches 80% of the home’s original value, and it must end automatically at 78% if you are current on payments. FHA, VA and USDA loans have their own mortgage insurance or funding-fee rules.
| Down payment | Loan amount | Principal and interest | PMI on a conventional loan? |
|---|---|---|---|
| 3% ($12,000) | $388,000 | $2,452.42 | Yes, until the loan reaches 78% of the original value (automatic under the Homeowners Protection Act) |
| 5% ($20,000) | $380,000 | $2,401.86 | Yes, until the loan reaches 78% of the original value (automatic under the Homeowners Protection Act) |
| 10% ($40,000) | $360,000 | $2,275.44 | Yes, until the loan reaches 78% of the original value (automatic under the Homeowners Protection Act) |
| 15% ($60,000) | $340,000 | $2,149.03 | Yes, until the loan reaches 78% of the original value (automatic under the Homeowners Protection Act) |
| 20% ($80,000) | $320,000 | $2,022.62 | No |
| 25% ($100,000) | $300,000 | $1,896.20 | No |
What extra payments save
Any amount you pay above the scheduled payment goes straight to principal, so every later month charges interest on a smaller balance. The savings compound. Open the extra-payments panel in the calculator above to test your own amount; the table shows the effect on the example loan.
| Extra principal | Paid off in | Time saved | Interest saved |
|---|---|---|---|
| None | 360 months (30 years) | — | — |
| +$100/month | 314 months (26 y 2 m) | 46 months | $61,698 |
| +$200/month | 281 months (23 y 5 m) | 79 months | $105,429 |
| +$300/month | 254 months (21 y 2 m) | 106 months | $138,446 |
| +$500/month | 216 months (18 y 0 m) | 144 months | $185,552 |
Before you prepay, check three things: that your loan has no prepayment penalty (the CFPB’s 2014 Ability-to-Repay rule bans them on most mortgages and caps them where allowed, but read your note), that you have an emergency fund, and that you are not carrying higher-rate debt such as credit cards, which are usually a better place for spare cash.
How much house can you afford?
A common starting point is the 28/36 guideline: keep your total housing payment (principal, interest, taxes, insurance, PMI and HOA dues) at or below 28% of gross monthly income, and all monthly debt payments, including the mortgage, car loans, student loans and card minimums, at or below 36%. Lenders treat these as guides, not hard limits, and many loan programs allow higher debt-to-income ratios. What a lender will approve and what fits your budget are different questions.
| Gross household income | 28% of monthly income (housing) | 36% of monthly income (all debts) |
|---|---|---|
| $60,000 | $1,400 | $1,800 |
| $80,000 | $1,867 | $2,400 |
| $100,000 | $2,333 | $3,000 |
| $125,000 | $2,917 | $3,750 |
| $150,000 | $3,500 | $4,500 |
| $200,000 | $4,667 | $6,000 |
To turn the housing figure into a price, enter it as your target in the calculator: change the home price until the monthly total matches the 28% column, then check that the amount you would have left each month still covers savings, childcare, commuting and repairs. A useful rule of thumb for upkeep is to set aside money every year for maintenance, because roofs, water heaters and appliances wear out on their own schedule.
Fixed-rate vs adjustable-rate mortgages
A fixed-rate mortgage keeps the same interest rate, and the same principal and interest payment, for the whole term. An adjustable-rate mortgage (ARM) has a fixed rate for an opening period, often 5, 7 or 10 years, and then resets on a schedule to an index plus a margin, within caps written into the loan. ARMs can start lower, which helps if you expect to sell or refinance before the first reset, but the payment can rise later. This calculator models fixed-rate loans; for an ARM, use it to estimate the payment during the fixed period and again at the highest rate the caps allow.
Common mistakes when estimating a mortgage payment
- Leaving out taxes and insurance. Principal and interest are only part of the bill. In many areas, property tax and homeowners insurance add several hundred dollars a month. The calculator includes both by default.
- Using the advertised rate. Your rate depends on your credit, down payment, loan type and points. Use a quoted rate when you have one; the Freddie Mac weekly average shown above is a benchmark, not an offer.
- Forgetting PMI and HOA dues. Both are part of the monthly cost lenders count in your debt-to-income ratio.
- Ignoring closing costs. Lender fees, title, appraisal and prepaid items are paid at closing, on top of the down payment. Your Loan Estimate lists them on page 2.
- Comparing payments, not total cost. A longer term lowers the payment but raises total interest, as the rate table shows.
When does refinancing pay off?
Refinancing replaces your loan with a new one, usually to get a lower rate. It costs money up front, so the useful question is how many months of lower payments it takes to earn the closing costs back. The table uses a $300,000 balance at 7.5% (principal and interest $2,097.64 a month) and assumes $6,000 of closing costs as an example; your Loan Estimate will show your real figure.
| New rate | New payment | Monthly saving | Months to recover $6,000 costs |
|---|---|---|---|
| 7.00% (−0.5 pt) | $1,995.91 | $101.74 | 59 months |
| 6.75% (−0.75 pt) | $1,945.79 | $151.85 | 40 months |
| 6.50% (−1 pt) | $1,896.20 | $201.44 | 30 months |
| 6.00% (−1.5 pt) | $1,798.65 | $298.99 | 21 months |
If you expect to sell or refinance again before the break-even month, the new loan loses money. Two more checks matter. First, a new 30-year loan restarts the clock, so a lower payment can still mean more total interest if you were already years into the old loan; compare total remaining interest, not just the payment, by running both loans through the calculator. Second, rolling closing costs into the balance avoids cash at closing but adds interest on those costs for the life of the loan.
Frequently asked questions
What does a mortgage payment include?
Principal and interest, plus usually property tax and homeowners insurance collected through escrow, PMI if you put less than 20% down on a conventional loan, and any HOA dues.
How is property tax estimated from my ZIP?
We divide the median real estate taxes paid by the median owner-occupied home value for your ZIP Code Tabulation Area (Census ACS 2020–2024) and apply that rate to your home price. Your actual bill depends on your assessed value and exemptions.
When does PMI go away?
On a conventional loan, lenders must cancel PMI automatically when the balance is scheduled to reach 78% of the original value, and you can ask to cancel at 80%. The calculator shows the month it ends.
Do extra payments really save money?
Yes. Extra principal reduces the balance that interest is charged on. On a $320,000, 30-year loan at 6.5%, an extra $200 a month saves about $105,429 in interest and pays the loan off 6 years 7 months sooner.
Is a 15-year mortgage cheaper?
The monthly payment is higher, but total interest is much lower because you borrow for half the time.
Can I download the amortization schedule?
Yes. Use Download schedule (CSV) under the results to get every payment with date, principal, interest, extra principal, PMI and balance.
Do FHA and VA loans have PMI?
No, they use different rules. FHA loans charge mortgage insurance premiums (MIP) set by HUD, including an upfront premium of 1.75% of the base loan, and the PMI cancellation rules do not apply to them. VA loans have no monthly mortgage insurance; most borrowers pay a one-time VA funding fee instead. This calculator models conventional PMI.
What is PITI?
Principal, interest, taxes and insurance: the full monthly payment when property tax and homeowners insurance are collected through escrow.
How is a monthly mortgage payment calculated?
With the standard amortization formula M = P × r(1 + r)^n ÷ ((1 + r)^n − 1), where P is the loan amount, r is the monthly rate (annual rate ÷ 12) and n is the number of payments. For $320,000 at 6.5% over 30 years (360 payments), that is $2,022.62 a month. Property tax, homeowners insurance, PMI and HOA dues are added on top.
How much house can I afford?
A common guideline is the 28/36 rule: keep housing costs (PITI) under 28% of gross monthly income and all debt payments under 36%. Many lenders allow a total debt-to-income ratio of 43% or more, depending on the loan program. On $8,000 a month of gross income, 28% is $2,240 for housing.
How much down payment do I need?
Conventional loans allow as little as 3% down, FHA loans 3.5% with a credit score of 580 or higher, and VA and USDA loans can require nothing down. Putting at least 20% down on a conventional loan avoids private mortgage insurance (PMI).
What is escrow in a mortgage payment?
Escrow is an account your loan servicer uses to collect a monthly share of your property tax and homeowners insurance along with the loan payment, then pay those bills when they are due. It is why the payment on your statement is higher than principal and interest alone.