Mortgage Calculator
Calculate your monthly mortgage payment and see the full amortization schedule.
Loan Details
Loan Amount: $320,000
Additional Costs (Optional)
Amortization Schedule
Monthly Payment
$2,516.31
Payment Breakdown
Current Average Rates
Frequently Asked Questions About Mortgage Rates
How do I calculate my mortgage payment?
To calculate your mortgage payment, enter your home price, down payment, interest rate, and loan term in our calculator above. The formula considers principal and interest, and you can also add property taxes and insurance for a complete monthly payment estimate. At current rates of 6.47% for a 30-year fixed mortgage, a $400,000 home with 20% down would have a principal and interest payment of approximately $2,000 per month.
What is a good mortgage interest rate?
A good mortgage rate depends on current market conditions and your credit profile. As of now, the average 30-year fixed rate is 6.47% and the 15-year fixed rate is 5.81%. Rates are influenced by the Federal Reserve's interest rate decisions, inflation, and economic conditions. Borrowers with excellent credit (760+) typically qualify for the best rates.
How much house can I afford?
As a general rule, your monthly housing costs (mortgage, taxes, insurance) should not exceed 28% of your gross monthly income. Your total debt payments should stay below 36% of income. For example, with a $100,000 annual salary, aim for a maximum monthly payment of about $2,333. Use our calculator to find the home price that fits your budget at current rates.
What is the difference between 15-year and 30-year mortgages?
A 15-year mortgage has higher monthly payments but lower total interest costs. A 30-year mortgage has lower monthly payments but you pay more interest over time. Currently, 15-year rates (5.81%) are lower than 30-year rates (6.47%). For a $320,000 loan, a 15-year mortgage saves over $100,000 in interest compared to a 30-year term.
How much should I put down on a house?
A 20% down payment is ideal because it eliminates private mortgage insurance (PMI) and reduces your monthly payment. However, many loans allow 3-5% down for first-time buyers. FHA loans require as little as 3.5% down. A larger down payment means a smaller loan amount, lower monthly payments, and less interest paid over time.
What is included in a monthly mortgage payment?
A full mortgage payment typically includes Principal (loan balance reduction), Interest (cost of borrowing), Property Taxes (escrowed monthly), and Homeowners Insurance (escrowed monthly) - often called PITI. If your down payment is less than 20%, you may also pay Private Mortgage Insurance (PMI). Our calculator shows all these components.
How does the Fed rate affect mortgage rates?
The Federal Reserve's interest rate indirectly influences mortgage rates. When the Fed raises rates (currently 3.5%-3.75%), borrowing costs increase across the economy, typically pushing mortgage rates higher. However, mortgage rates also respond to inflation expectations, bond yields, and economic outlook. Track Fed decisions on our FOMC schedule page.
What is an amortization schedule?
An amortization schedule shows how your mortgage payment is split between principal and interest over the life of the loan. Early payments are mostly interest, while later payments are mostly principal. Click "Show Schedule" in our calculator to see your complete payment breakdown month by month, including remaining balance after each payment.
How It's Calculated
Your principal and interest payment is calculated with the standard fixed-rate amortization formula. It spreads the loan into equal monthly payments so the balance reaches zero by the end of the term:
M = P · r(1 + r)n / ((1 + r)n − 1)
Where each term means:
- M — your monthly principal and interest payment (the number this formula produces).
- P — the loan amount (principal): the home price minus your down payment.
- r — the monthly interest rate. This is the annual rate divided by 12. A 6% annual rate becomes 0.06 / 12 = 0.005 per month.
- n — the total number of monthly payments. This is the loan term in years times 12. A 30-year loan has 30 × 12 = 360 payments.
A worked example
Suppose you borrow $320,000 (a $400,000 home with 20% down) on a 30-year loan at 6.22% annual interest:
- P = 320,000
- r = 6.22% ÷ 12 = 0.0622 / 12 ≈ 0.005183 per month
- n = 30 × 12 = 360 payments
Plugging these into the formula gives a monthly principal and interest payment of about $1,964. Over the full 360 payments you would pay roughly $707,060 in total, of which about $387,060 is interest. The calculator above adds estimated property tax and home insurance on top of this principal-and-interest figure to show your full monthly cost.
Note: this calculation covers principal and interest. It does not include closing costs, PMI, HOA fees, or changes in escrowed taxes and insurance over time. Actual rates depend on your credit, lender, and market conditions.
Authoritative sources: Federal Reserve · FOMC · FRED Economic Data · U.S. Treasury