Enter a home price, down payment, and interest rate to see your complete monthly payment including principal, interest, property taxes, insurance, and PMI. View amortization schedules and see how extra payments reduce your total cost.
Buying a home is the largest financial commitment most people make. According to the National Association of Realtors (NAR), the median existing home price in 2026 is approximately $420,000, and 30-year fixed mortgage rates reported by Freddie Mac hover around 6.5-7.0%. Understanding exactly what your monthly payment will be — including taxes, insurance, and PMI — is critical before you make an offer.
Lenders use the 28/36 rule as their primary affordability guideline: spend no more than 28% of gross monthly income on housing costs (PITI) and no more than 36% on total debt. Here's what that means for different incomes:
These estimates include principal, interest, property taxes (~1.25%), and insurance (~$200/month). Use our salary calculator to determine your actual gross income, then plug it into our mortgage calculator to see exactly how much home you can afford.
Your total monthly housing cost consists of four components known as PITI:
If your down payment is below 20%, add PMI (Private Mortgage Insurance) at 0.5-1.5% of the loan amount per year. On a $336,000 loan, PMI can cost $140-$420/month. Our calculator accounts for all five components to show your true monthly obligation.
Fixed-rate mortgages use amortization: your payment stays constant, but the allocation between principal and interest shifts over time. On a 30-year mortgage at 6.75%, roughly 75% of your first payment is interest. By year 15, the split is about 50/50. By year 25, most of each payment goes to principal. This front-loaded interest structure means extra payments in the early years have the greatest impact — an extra $200/month from day one can shave 5-6 years off a 30-year mortgage and save over $70,000 in interest.
The two most common mortgage terms are 30-year and 15-year fixed. Here's a side-by-side comparison for a $336,000 loan (median $420K home with 20% down):
A middle-ground strategy: take a 30-year mortgage for the lower required payment, but voluntarily pay an extra $658/month when you can. This gives you flexibility to skip the extra payment during tight months, while achieving near-15-year results when finances allow.
Your down payment dramatically affects both your monthly payment and total cost. Here's the math on a $420,000 home at 6.75% for 30 years:
While 20% down eliminates PMI and secures the best rates, it's not always practical — especially for first-time buyers. FHA loans allow as little as 3.5% down for credit scores above 580. Use our calculator to model different down payment scenarios for your budget.
Beyond PITI, budget for these often-overlooked expenses that add 1-3% of home value annually:
Not sure whether buying makes sense in your market? Our rent vs buy calculator factors in all these costs to give you a clear break-even timeline.
Enter the home price, down payment percentage, interest rate, and loan term. The calculator computes your monthly principal and interest payment, adds property taxes, homeowner's insurance, and HOA fees for a complete monthly cost. A payment breakdown pie chart shows exactly where each dollar goes, and the amortization chart tracks your principal vs. interest over the loan's life. Adjust any input to instantly see the impact on your payment.
Reviewed by Tahir Özcan · Founder, WealthCalc · Editorial policy
Monthly payment calculated using the standard amortization formula: M = P[r(1+r)^n]/[(1+r)^n−1], where P is principal, r is monthly rate, and n is total payments. PMI, property taxes, and insurance are added separately. Conforming loan limits are the FHFA 2026 published values.
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Read Full GuideEverything first-time home buyers need to know in 2026. From pre-approval to closing day, learn how to buy a house confidently while saving thousands on your mortgage.
Read Full GuideLearn exactly when refinancing saves money in the current 2026 rate environment. Includes break-even calculator logic, closing cost estimates, and rate-lock strategies.
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Read Full GuideYour monthly mortgage payment is calculated using the standard amortization formula: M = P[r(1+r)^n]/[(1+r)^n-1], where M is the monthly payment, P is the loan amount, r is the monthly interest rate, and n is the total number of payments. For a $320,000 loan at 6.75% over 30 years, the monthly principal and interest payment would be approximately $2,075. Property taxes, insurance, and PMI (if applicable) are added on top of this.
PMI (Private Mortgage Insurance) is required when your down payment is less than 20% of the home price. It protects the lender if you default on the loan. PMI typically costs between 0.5% and 1.5% of the loan amount per year. On a $320,000 loan, this could add $133-$400/month to your payment. PMI is usually automatically removed once you reach 20% equity in your home, either through payments or home value appreciation.
A 15-year mortgage has higher monthly payments but significantly less total interest. For a $320,000 loan at 6.75%: a 30-year mortgage costs $2,075/month with $426,966 total interest, while a 15-year mortgage costs $2,835/month with only $190,234 total interest — saving you $236,732. Choose 15 years if you can comfortably afford the higher payments; choose 30 years for lower monthly obligations and more financial flexibility.
A common guideline is the 28/36 rule: spend no more than 28% of your gross monthly income on housing costs (mortgage, taxes, insurance) and no more than 36% on total debt payments. For a household income of $100,000/year ($8,333/month), this means your total housing payment should not exceed approximately $2,333/month. Our calculator helps you work backward from your budget to find the right home price.
As of early 2026, average mortgage rates for a 30-year fixed mortgage are approximately 6.5-7.0%, while 15-year fixed rates are around 5.75-6.25%. Rates vary based on your credit score, down payment, loan amount, and lender. A credit score above 740 typically qualifies you for the best available rates. Our calculator defaults to 6.75% as a representative current rate.
An amortization schedule shows how each mortgage payment is split between principal (paying down your loan) and interest over the life of the loan. In the early years, most of your payment goes toward interest. Over time, the split gradually shifts until most of each payment goes toward principal. Understanding your amortization schedule helps you see how extra payments can save you thousands in interest and years off your mortgage.
Get a complete picture of your finances by combining this tool with our other free calculators and in-depth guides.
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Monthly payment calculated using the standard amortization formula: M = P[r(1+r)^n]/[(1+r)^n−1], where P is principal, r is monthly rate, and n is total payments. PMI, property taxes, and insurance are added separately. Conforming loan limits are the FHFA 2026 published values.
Figures are updated whenever the IRS, SSA, CMS, FHFA, HHS, or BLS publishes a new inflation adjustment or statutory change. This tool is for educational purposes only and does not constitute tax, legal, or investment advice. Consult a qualified professional for decisions affecting your personal finances.
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