How the monthly mortgage payment is built
Your monthly mortgage payment has up to five parts, often called PITI plus PMI and dues: principal, interest, property taxes, homeowners insurance, mortgage insurance and any HOA dues. Taxes and insurance are usually collected each month into an escrow account the servicer uses to pay those bills.[5]
| Part | How it is figured | Per month |
|---|---|---|
| Principal and interest | Amortization formula on the loan | $2,152.66 |
| Property tax | Annual tax ÷ 12 | $400.00 |
| Homeowners insurance | Annual premium ÷ 12 | $166.67 |
| PMI | None at 20% down | $0.00 |
| Total | $2,719.33 |
Principal and interest = P × r ÷ (1 − (1 + r)−n)$320,000 × 0.005925 ÷ (1 − (1 + 0.005925)−360) = $2,152.66
The how to calculate a mortgage payment page works the formula one step at a time.
Mortgage payment by rate and loan amount
Each percentage point of rate changes the payment by roughly 6% to 7% at today's levels. Monthly principal and interest on a 30-year fixed loan:
| Loan | 5.5% | 6% | 6.5% | 7% | 7.5% |
|---|---|---|---|---|---|
| $200,000 | $1,136 | $1,199 | $1,264 | $1,331 | $1,398 |
| $300,000 | $1,703 | $1,799 | $1,896 | $1,996 | $2,098 |
| $400,000 | $2,271 | $2,398 | $2,528 | $2,661 | $2,797 |
| $500,000 | $2,839 | $2,998 | $3,160 | $3,327 | $3,496 |
| $750,000 | $4,258 | $4,497 | $4,741 | $4,990 | $5,244 |
Freddie Mac's weekly survey put the 30-year average at 7.11% and the 15-year at 6.45% on Nov 12, 2026.[1] The rate you are offered depends on things like your credit, down payment, loan type and points, so use the rate from your own Loan Estimate.[7]
Mortgage calculator with PMI
Private mortgage insurance is usually required on a conventional loan when you put down less than 20%; it protects the lender, not you.[2] With 10% down on the same home, the loan is $360,000, principal and interest rise to $2,421.74, and PMI at 0.5% a year adds $150.00, for a total of $3,138.41. The PMI rate here is an input; your lender quotes the actual premium.
PMI does not last forever. You can ask to cancel it when the balance reaches 80% of the home's original value, and it must end automatically when the balance is scheduled to reach 78%, if you are current; at the latest it ends the month after the midpoint of the loan term.[4][3] On the 10%-down example that is after 9.8 years of regular payments, about $17,550 of PMI in total. The LTV calculator shows how much to pay down to get there sooner.
Conventional, FHA or VA: one house, three loans
The loan type changes the payment through mortgage insurance and upfront fees, not just the rate. On the same $400,000 home at 7.11% for 30 years, with the same taxes and insurance:
| Loan | Loan amount | Mortgage insurance | Monthly payment | Insurance ends |
|---|---|---|---|---|
| Conventional, 20% down | $320,000 | none | $2,719 | — |
| Conventional, 5% down | $380,000 | $158/mo | $3,281 | after 11.9 years |
| FHA, 3.5% down | $392,755 | $180/mo | $3,389 | never (life of loan) |
| VA, 0% down (first use) | $408,600 | none | $3,315 | — |
FHA charges 1.75% of the base loan up front, usually added to the loan, plus an annual premium; on a 30-year loan of $726,200 or less it is 0.55% a year with less than 5% down and 0.50% with 5% or more; it lasts 11 years if you put at least 10% down, and the whole term if you put down less.[8] A VA purchase loan has no monthly mortgage insurance, but a one-time funding fee of 2.15% on a first use with less than 5% down, 1.5% with 5% down and 1.25% with 10%.[9] Conventional PMI is priced by the insurer; the 0.5% here is an assumption you can change. The VA mortgage calculator covers VA exemptions in detail.
How the down payment changes the payment
Each step up in the down payment lowers the loan, the interest and, below 20%, the PMI. Conventional loan, $400,000, 7.11%, 30 years, PMI assumed at 0.5% a year:
| Down payment | Loan | Principal and interest | PMI | Total monthly | PMI ends |
|---|---|---|---|---|---|
| 3% ($12,000) | $388,000 | $2,610 | $162 | $3,338 | 12.7 yr |
| 5% ($20,000) | $380,000 | $2,556 | $158 | $3,281 | 11.9 yr |
| 10% ($40,000) | $360,000 | $2,422 | $150 | $3,138 | 9.8 yr |
| 15% ($60,000) | $340,000 | $2,287 | $142 | $2,996 | 6.8 yr |
| 20% ($80,000) | $320,000 | $2,153 | $0 | $2,719 | — |
How to lower your mortgage payment
- Drop PMI as soon as you can. Ask in writing at 80% of the original value; the LTV calculator shows the pay-down needed.[3]
- Recast after a lump sum. Keep the rate and term, lower the payment: mortgage recast calculator.
- Refinance when the rate drop pays for the costs. The refi calculator finds the break-even month.
- Compare Loan Estimates. Rates and lender fees differ between lenders for the same borrower.[7]
- Check your escrow. Taxes and insurance can rise even on a fixed-rate loan, and they are part of the payment.[5]
Checked against the CFPB sample Loan Estimate
The CFPB's completed sample Loan Estimate shows a $162,000, 30-year loan at 3.875% with monthly principal and interest of $761.78.[10] Enter a $162,000 loan (price $180,000 with 10% down) at 3.875% and this calculator returns the same $761.78; the closing cost calculator reproduces the same form's fees line by line.
Amortization: where the payment goes
Early payments are mostly interest; the principal share grows every month. In year 1 of the 20%-down example, $22,650 of the $25,832 you pay is interest and $3,182 is principal. Over 30 years the interest adds up to $454,958, which is why extra payments early in the loan save so much.
Loan limitsFor 2026, the baseline conforming loan limit for a one-unit home is $832,750, and up to $1,249,125 in high-cost areas.[6] Larger loans are jumbo loans with their own pricing.
What the calculator leaves out
The payment above is what you send the servicer each month. It does not include utilities, maintenance or the one-time closing costs. Taxes and insurance change over time, so the escrow part of the payment can rise even on a fixed-rate loan. To see the full cost of owning over several years, use the home mortgage calculator. If you are still deciding whether to buy at all, the rent vs buy calculator sets this payment against renting the same home.
Frequently asked questions
How is a mortgage payment calculated?
Principal and interest = P × r ÷ (1 − (1 + r)−n), where P is the loan, r the monthly rate and n the number of payments. Add 1/12 of the yearly property tax and insurance, plus PMI and HOA dues, for the full monthly payment.
What is the monthly payment on a $300,000 mortgage?
At 7.11% for 30 years, principal and interest is $2,018.12 a month. Taxes, insurance and any PMI come on top.
How much does PMI add to a mortgage payment?
PMI is quoted as a yearly percentage of the loan. At 0.5% on a $360,000 loan it is $150.00 a month. It can be cancelled at 80% loan-to-value and ends automatically at 78% on schedule.[4]
Which costs less each month: FHA, VA or conventional?
It depends on the down payment. With little or nothing down, a VA loan often costs less each month than FHA because it has no monthly mortgage insurance, though its funding fee is added to the loan; in the table above, VA with 0% down comes in below FHA with 3.5% down. A conventional loan with 20% down, with no mortgage insurance at all, is the lowest of the four.
Does a 15-year mortgage save money?
Yes, a lot of interest. $300,000 at 6.45% for 15 years costs $2,605.08 a month and $168,915 of interest in total, vs. $426,523 over 30 years at 7.11%.
Sources
- Primary Mortgage Market Survey (PMMS)
- What is private mortgage insurance?
- When can I remove private mortgage insurance (PMI) from my loan?
- Homeowners Protection Act, 12 U.S.C. § 4902 (cancellation and termination of private mortgage insurance)
- What is an escrow or impound account?
- FHFA Announces Conforming Loan Limit Values for 2026
- Your home loan toolkit: A step-by-step guide
- Mortgagee Letter 2023-05: Reduction of FHA Annual Mortgage Insurance Premium Rates
- VA funding fee and loan closing costs
- Loan Estimate: fixed rate loan sample (form H-24(B))