A $400,000 home doesn't necessarily mean a $400,000 monthly housing decision. What matters to your budget is the amount you may actually have to pay each month. That can be quite different from the principal-and-interest payment shown in a basic mortgage estimate.
It's easy to enter a home price and interest rate into a mortgage calculator and focus on one monthly number. But property taxes, homeowners insurance, PMI and HOA fees can all change the amount you need to budget for the home.
This free Mortgage Payment Calculator helps you look at those costs together. Enter your home price, down payment, interest rate, loan term, property taxes, homeowners insurance, PMI and HOA fees to estimate your monthly payment and total borrowing cost.
This calculator was created by Revisiting Tools as an educational planning tool. It helps you explore different mortgage scenarios and understand how the loan amount, interest rate, loan term and other housing costs affect the numbers.
It is not a mortgage quote, loan approval or personalized financial recommendation. Actual costs depend on your lender, property, location, loan program and individual circumstances.
Mortgage Payment Calculator
Enter your estimated home and loan details to calculate your monthly mortgage payment, total interest and estimated housing costs.
This calculator provides estimates for educational purposes. Actual mortgage payments and borrowing costs can vary based on your lender, loan type, credit profile, property taxes, insurance, mortgage insurance, fees and other factors.
What Is a Mortgage Payment?
A mortgage payment is the amount you pay toward a home loan. For a typical fixed-rate mortgage, the principal-and-interest portion is determined by the amount borrowed, the interest rate and the number of monthly payments.
Your broader monthly housing cost can be higher because homeowners may also have property taxes, homeowners insurance, PMI and HOA fees.
That distinction matters when you're deciding whether a particular home actually fits your budget. A mortgage payment shown in a property listing may not represent the entire monthly cost of owning the property.
What Does This Mortgage Calculator Include?
The calculator separates several common parts of a homeowner's monthly housing expense so you can see how they affect the overall number.
- Home purchase price
- Down payment
- Mortgage loan amount
- Interest rate
- Loan term
- Principal and interest
- Estimated property taxes
- Homeowners insurance
- Monthly PMI
- Monthly HOA fees
- Total estimated monthly payment
- Total interest over the selected loan term
- Total principal and interest payments
- Year-by-year amortization
How Is the Mortgage Payment Calculated?
The principal-and-interest payment uses the standard fixed-rate mortgage amortization formula based on the loan amount, annual interest rate and number of monthly payments.
The broader monthly estimate then adds the property tax, homeowners insurance, PMI and HOA amounts entered into the calculator.
Property taxes and insurance are treated as simplified estimates rather than predictions of how those costs will change over many years. This keeps the calculator useful for comparing different mortgage scenarios without pretending that future costs are certain.
What Is Mortgage Principal?
Principal is the amount of money you borrow for the home. If you purchase a $400,000 home and make an $80,000 down payment, the starting mortgage balance is approximately $320,000 before considering any separately financed costs.
Every principal payment reduces the outstanding loan balance. As the balance falls, the amount of equity you have in the property can increase, assuming the home's market value does not fall.
What Is Mortgage Interest?
Interest is the cost of borrowing money from the lender.
Your interest rate can have a substantial effect on the total amount you pay over the life of a mortgage. Even a relatively small difference in the rate can become significant when applied to a large loan over many years.
The calculator shows the estimated monthly principal-and-interest payment and the total interest that would be paid if the loan remained under the same assumptions for the selected term.
Why Does the Down Payment Matter?
The down payment is the portion of the purchase price you pay upfront instead of borrowing through the mortgage.
A larger down payment generally means a smaller mortgage balance. That can lower the principal-and-interest payment and may reduce the total interest paid over the life of the loan.
But there is another side to the decision. Money used for a down payment is no longer available for other purposes, such as maintaining an emergency fund, paying moving expenses, handling repairs or pursuing other financial goals.
How Property Taxes Affect Your Payment
Property taxes are generally based on the assessed value of a property and applicable local tax rates. The amount can vary significantly between locations and properties.
For this calculator, you enter an estimated annual property tax rate. The calculator uses that rate and the home price to create a simplified monthly estimate.
This is not a property-tax bill or a prediction of future taxes. Actual tax calculations can depend on assessments, local rates, exemptions, reassessments and other rules.
Don't Forget Homeowners Insurance
Homeowners insurance is another recurring cost that can affect the amount you need to budget for a home.
Insurance premiums vary based on factors such as the property, location, coverage, deductible, insurer and other underwriting factors.
Enter your estimated annual premium into the calculator to see its approximate monthly effect.
What Is PMI?
Private mortgage insurance, commonly called PMI, may apply to certain conventional mortgages when the borrower makes a smaller down payment.
PMI requirements and costs depend on the loan and borrower. Because there is no single PMI amount that applies to everyone, this calculator lets you enter an estimated monthly amount.
What About HOA Fees?
Some homes are part of a homeowners association. An HOA may charge a recurring fee for services, amenities, maintenance or other community expenses.
HOA fees vary widely between properties. If the home you're considering has an HOA, enter the estimated monthly fee in the calculator.
Mortgage Payment vs. Total Housing Payment
One of the easiest mistakes to make is treating the principal-and-interest payment as the complete cost of owning a home.
Additional housing costs: Property Taxes + Insurance + PMI + HOA
Total estimated monthly payment: Mortgage Payment + Additional Housing Costs
Your actual monthly expenses can include additional items that aren't included in this calculation, such as utilities, maintenance and repairs.
How Does the Interest Rate Affect Your Payment?
The interest rate is one of the most important variables in a mortgage calculation.
Imagine two borrowers purchasing similarly priced homes with the same down payment. If one borrower receives a lower interest rate, the monthly principal-and-interest payment may be lower, and the total interest paid over the loan can also be substantially lower.
This is why it can be useful to test several interest-rate assumptions instead of treating one rate as the only possibility.
What If the Interest Rate Changes?
Interest rates can make a meaningful difference when you're borrowing hundreds of thousands of dollars. The purchase price can remain exactly the same while the mortgage payment changes because the rate changes.
Try entering the same home price and down payment into the calculator and then test different rates. For example, compare 6%, 6.5% and 7%. The monthly difference may seem manageable at first, but the effect on total interest can become much larger over a long loan term.
This is one reason scenario testing can be more useful than relying on a single mortgage estimate.
How Does Loan Term Change the Cost?
The loan term determines how many monthly payments you make.
A longer loan term can reduce the required monthly principal-and- interest payment because the balance is spread across more payments. However, a longer repayment period can also result in substantially more interest being paid over the life of the loan.
A shorter loan term generally requires a higher monthly payment, but it can reduce the total amount of interest paid.
15-Year vs. 30-Year Mortgage
A 15-year mortgage and a 30-year mortgage can have very different payment profiles even when the home price, down payment and interest rate are the same.
| Factor | 15-Year Loan | 30-Year Loan |
|---|---|---|
| Monthly payment | Generally higher | Generally lower |
| Repayment period | Shorter | Longer |
| Total interest | Generally lower | Generally higher |
| Principal paid | Faster | More slowly |
| Monthly cash-flow flexibility | Generally lower | Generally higher |
Example: Estimating a Mortgage Payment
Suppose you're looking at a $400,000 home and plan to make an $80,000 down payment. That leaves an estimated $320,000 mortgage before considering any separately financed costs.
Now imagine a 30-year fixed-rate mortgage at 6.5%. Enter those numbers into the calculator and add your estimated property taxes, homeowners insurance, PMI and HOA fees if they apply.
Next, change the interest rate or down payment. You'll immediately see how those assumptions affect the monthly payment and total interest.
The purpose of this example isn't to tell you what your payment should be. It's to show why the same home can produce very different monthly costs depending on the financing.
How Much House Can You Afford?
A mortgage calculator can tell you what a particular loan might cost, but it cannot decide whether that payment is comfortable for your household.
Your complete budget may also include utilities, transportation, groceries, insurance, childcare, existing debt, savings, maintenance and other recurring expenses.
A lender's approval amount is also not necessarily the same thing as the home price that makes sense for your personal budget.
What Should You Budget Besides the Mortgage?
Owning a home can involve expenses that don't appear in the principal-and-interest payment.
- Property taxes
- Homeowners insurance
- Maintenance
- Repairs
- HOA fees
- Utilities
- PMI, when applicable
- Landscaping or property services
- Future improvements
Some expenses are predictable while others are not. Leaving room in your budget for maintenance and unexpected repairs can make homeownership easier to manage.
Why Does the Amortization Schedule Matter?
An amortization schedule shows how your mortgage balance changes over time.
At the beginning of a typical fixed-rate mortgage, the outstanding balance is relatively high, so the interest portion of each payment can be significant. As principal is paid down, the balance becomes smaller.
The calculator provides a year-by-year view of principal paid, interest paid and the estimated remaining mortgage balance.
How to Compare Different Mortgage Scenarios
One of the best ways to use a mortgage calculator is to compare scenarios rather than entering one set of numbers and stopping there.
- Try a larger down payment.
- Try a smaller down payment.
- Compare a 15-year and 30-year loan.
- Test a higher interest rate.
- Test a lower interest rate.
- Add estimated HOA fees.
- Add PMI if it applies.
- Change the property tax estimate.
- Compare different home prices.
Seeing several scenarios can help you understand which assumptions have the biggest effect on your monthly payment.
What This Calculator Does Not Include
This calculator is intended as a planning tool rather than a complete loan-cost estimator. Some expenses vary too much between borrowers, properties and transactions to be represented accurately with one universal assumption.
- Mortgage origination fees
- Discount points
- Prepaid interest
- Escrow adjustments
- Home inspection costs
- Appraisal fees
- Attorney or settlement fees
- Moving expenses
- Home repairs and renovations
- Utilities
- Future changes in property taxes
- Future changes in insurance premiums
If you're comparing actual loan offers, use the lender's official disclosures and loan documents rather than relying on a calculator estimate.
Mortgage Payment vs. Rent
If you're deciding whether to rent or buy, the mortgage payment is only one part of the comparison.
A renter may primarily compare monthly rent with their rental expenses. A homeowner may have a mortgage, property taxes, insurance, maintenance, HOA fees and transaction costs.
That's why this mortgage calculator works well alongside our Rent vs. Buy Calculator .
Frequently Asked Questions
Common questions about mortgage payments, loan terms and the calculator.
What is included in a mortgage payment?
A mortgage payment can refer specifically to principal and interest, while a broader monthly housing payment may also include property taxes, homeowners insurance, PMI and HOA fees. This calculator lets you include these additional costs.
How much is the monthly payment on a $400,000 house?
There is no single payment for a $400,000 home. The result depends on the down payment, interest rate, loan term, property taxes, insurance, PMI and HOA fees. Enter your own assumptions above to estimate the payment.
Does a larger down payment lower my mortgage payment?
Generally, yes. A larger down payment means you borrow less, which can reduce the principal-and-interest portion of your monthly payment. It can also reduce the total interest paid over the life of the loan.
Does this calculator include property taxes?
Yes. You can enter an estimated annual property tax percentage, and the calculator includes that estimate in the monthly housing payment.
Does this calculator include homeowners insurance?
Yes. Enter your estimated annual homeowners insurance premium and the calculator converts it into an estimated monthly amount.
Does this calculator include PMI?
Yes. You can enter an estimated monthly PMI amount if mortgage insurance applies to your loan.
Does this calculator include HOA fees?
Yes. Enter the estimated monthly HOA fee to include it in the total monthly housing payment.
Is a 15-year mortgage better than a 30-year mortgage?
Neither option is automatically better for everyone. A 15-year mortgage generally requires a higher monthly payment but can reduce the repayment period and total interest. A 30-year mortgage generally provides a lower required payment but can result in more interest over the full term.
Why does my lender's payment differ from this calculator?
A lender's estimate can differ because of the exact loan terms, property taxes, insurance premiums, mortgage insurance, fees, points, escrow assumptions and other costs. This calculator provides an estimate rather than a loan quote.
Does this calculator include closing costs?
No. The calculator focuses on the recurring mortgage and housing payment. Closing costs can vary by transaction and should be considered separately when planning the cash needed to purchase a home.
Is this mortgage calculator financial advice?
No. It is an educational tool that provides estimates based on the information entered by the user. It is not financial, mortgage, tax, legal or investment advice.
Mortgage Payment Calculator: The Bottom Line
A mortgage payment is more than one number. Your home price, down payment, interest rate and loan term determine the basic mortgage payment, while property taxes, insurance, PMI and HOA fees can affect the broader monthly housing cost.
Use the calculator to test different combinations rather than relying on one estimate. Try changing the home price, down payment, interest rate and loan term to see how the payment and total interest respond.
And if you're deciding between renting and buying, don't stop at the mortgage payment. Compare the broader costs of both choices using our Rent vs. Buy Calculator .
Related Calculators
- Rent vs. Buy Calculator
- Home Affordability Calculator
- Down Payment Calculator
- Property Tax Calculator
- Closing Cost Calculator
- Homeownership Cost Calculator