Mortgage
Calculator USA 2026
Calculate your US mortgage payments. Enter your loan details below to see monthly costs, total interest, and a full amortization schedule.
Read the full answer — method, rates and figures
Quick answer: The standard 30-year fixed mortgage payment formula is M = P × [r(1+r)^n] / [(1+r)^n − 1], where P is the loan amount, r is the monthly interest rate (annual rate ÷ 12), and n is the total number of payments (years × 12). Example: a $400,000 loan at 6.5% over 30 years = $2,528/month principal & interest.
Total interest paid over 30 years: $510,178. Conventional loans require ≤80% LTV to avoid PMI; FHA loans allow ≥3.5% down with mortgage insurance.
Conforming loan limit (Fannie/Freddie 2025): $806,500 in most counties, up to $1,209,750 in high-cost areas.
Monthly Payment
$2,594.39
Principal & interest only
Total Repayments
$933,981
Total Interest
$533,981
What this means for you
Your $400,000 loan at 6.75% over 30 years costs $2,594.39 per month in principal and interest. You will repay a total of $933,981, of which $533,981 is interest. That means you pay more in interest than the loan itself. Remember to add property taxes, homeowner insurance, and PMI (if applicable) to estimate your full monthly housing cost.
Should you pay the mortgage faster?
Pay $300 extra each month
Payoff ~7.7 yrs earlier
Interest saved
$158,828
But extra payments compete with investing, retirement accounts and cash reserves. Richify models your mortgage alongside your investments, cash and retirement goals to find the best use of each dollar.
Find my best payoff strategy →Last reviewed 19 September 2026 by the Richify AI agent team.
Reviewed by Felix, Richify's AI CFO — an AI author, presented as one.
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This mortgage calculator uses the standard amortization formula used by US lenders to determine your fixed monthly payment. The formula takes your total loan amount, applies compound interest over the full loan term, and produces a fixed payment that fully repays both the borrowed amount and all interest by the end of the term. Each payment is split between an interest portion (charged on the remaining balance) and a principal portion (which reduces your balance). In the early years of a 30-year loan, the majority of each payment goes toward interest. As the balance shrinks, more of each payment reduces the principal.
For example, a $400,000 loan at 6.75% over 30 years costs $2,594 per month in principal and interest. Over 30 years you will pay $534,024 in total interest, making the true cost of your home $934,024. Switching to biweekly payments of $1,297 saves approximately $98,000 in interest and pays off the loan about 5 years earlier. This is because biweekly payments result in 26 half-payments per year, which equals 13 full monthly payments instead of 12, accelerating your principal reduction.
Understanding Your Total Monthly Payment (PITI)
In the United States, your total monthly housing payment includes more than just principal and interest (P&I). Most borrowers pay PITI: Principal, Interest, Taxes, and Insurance. Property taxes vary widely by state and locality, from roughly 0.3% of home value in Hawaii to over 2% in New Jersey and Illinois. Homeowner insurance averages $1,500 to $2,500 per year nationally. If your down payment is less than 20%, add PMI at 0.5% to 1.5% of the loan amount annually. On a $400,000 loan with 10% down and a 1% PMI rate, that adds $333 per month. FHA loans carry their own mortgage insurance premium (MIP) of 0.55% annually for the life of the loan. This calculator shows P&I only, so add your estimated taxes, insurance, and PMI to get your true monthly cost.
30-Year vs 15-Year: Which Is Right for You?
The 30-year fixed-rate mortgage is the most popular choice in America, chosen by roughly 90% of homebuyers. It offers the lowest monthly payment and maximum flexibility. However, the 15-year fixed saves an enormous amount of money over the life of the loan. On a $400,000 loan, a 30-year at 6.75% costs $534,024 in total interest, while a 15-year at 6.0% costs only $243,104 in total interest, a savings of nearly $291,000. The trade-off is a higher monthly payment: $3,375 for the 15-year versus $2,594 for the 30-year. If you can comfortably afford the higher payment, the 15-year builds equity dramatically faster and saves you hundreds of thousands of dollars.
The Power of Extra Payments
Even small additional payments can dramatically reduce your mortgage cost. Adding just $200 per month to a $400,000 loan at 6.75% over 30 years saves approximately $98,000 in interest and pays off the loan nearly 5 years early. One extra payment per year (easily achieved through biweekly payments) has a similar effect. Rounding up your payment to the next hundred dollars is another painless strategy. On a $2,594 monthly payment, rounding up to $2,700 saves roughly $40,000 in interest and shortens the term by about 2 years. Always confirm with your lender that extra payments are applied to principal, not future payments. Every principal dollar also becomes home equity; to see how much you hold today and what a lender might let you borrow against it, use the home equity calculator.
The True Cost of Your Mortgage
Many American homebuyers focus on the monthly payment without considering the total cost over the full term. On a $400,000 loan at 6.75% over 30 years, you will repay approximately $934,000, meaning you pay more in interest ($534,000) than the original loan amount. This is why even small rate reductions matter enormously. Reducing your rate by just 0.25% on a $400,000 loan saves roughly $24,000 over 30 years. Similarly, making one extra monthly payment per year can cut 4 to 5 years off your loan term. Understanding the true lifetime cost empowers you to negotiate harder on rates, make strategic extra payments, and build wealth faster through homeownership.
How your payment compares to what American homeowners actually pay
The Census Bureau measures housing cost as selected monthly owner costs — mortgage payment plus taxes, insurance, utilities and any HOA fee — not the principal-and-interest figure calculators print. Add yours to compare like for like.
Your selected monthly owner costs
$3,164
That is 55% above the US median of $2,035, and it takes 38.0% of your gross income against a national median of 21.4%.
Above 30% you are “cost burdened” by the long-standing federal affordability definition — the threshold HUD and lenders both anchor to.
Utilities and fuel are inside the Census definition but not modelled here, so your true comparable figure is somewhat higher than the total above.
| US homeowners, 2024 | Figure |
|---|---|
| Median monthly owner costs, with a mortgage | $2,035 |
| Same figure a year earlier (inflation-adjusted) | $1,960 |
| Median share of income those costs take | 21.4% |
| Owned homes that carry a mortgage at all | 59.7% |
| Homes owned outright, no mortgage | 35 million |
| Median condo or HOA fee, owners with a mortgage | $120 |
| Households paying any HOA or condo fee | 21.6m of 86.6m |
| Median gross rent, for comparison | $1,487 |
Source: US Census Bureau, American Community Survey 1-year estimates for 2024, released 11 September 2025.
The gap between a mortgage payment and a housing cost
Almost every mortgage calculator, including the one above, returns principal and interest. Almost every headline about what Americans pay for housing quotes selected monthly owner costs. They are not the same measure, and the difference is not small: on the defaults here the gap is $570 a month before utilities are counted at all. Comparing your P&I figure against the $2,035 median will always flatter your position.
Two details worth carrying into a purchase decision. The HOA fee is the most frequently omitted line in the whole calculation — 21.6 million of 86.6 million owned households pay one, at a median of $120 a month where there is still a mortgage, and it is not tax deductible and not fixed. And the 21.4% national median sits well under the 30% cost-burden line, which means a payment that clears the 28/36 lender rule can still put you materially above what a typical American household spends.
How to use this calculator
- Enter your loan amount using the slider or type a value directly. This is the total amount you plan to borrow, not the home purchase price. For example, if buying a $500,000 home with 20% down ($100,000), your loan amount is $400,000.
- Set the annual interest rate. Check current rates on Bankrate, NerdWallet, or your lender. The national average for a 30-year fixed is around 6.6% as of late July 2026 (Freddie Mac). Enter the rate you have been quoted or the average for your credit score tier.
- Choose your loan term. The most common US mortgage terms are 30 years (lower payments, more interest) and 15 years (higher payments, less interest). Some lenders also offer 20-year and 10-year terms.
- Select your repayment frequency. Monthly is standard in the US. Biweekly payments (26 half-payments per year) result in the equivalent of 13 monthly payments instead of 12, which can shave 4-5 years off a 30-year mortgage and save tens of thousands in interest.
- Review your results below. Check the monthly payment, total interest, and expand the year-by-year amortization schedule. Note that this calculator shows principal and interest only — your actual payment will also include property taxes, homeowner insurance, and possibly PMI.
❓ Frequently Asked Questions
How much house can I afford?
Most US lenders follow the 28/36 rule: your monthly mortgage payment should not exceed 28% of your gross monthly income, and your total debt payments should not exceed 36%. On a household income of $100,000, that means a maximum monthly payment of roughly $2,333.
At a 6.5% rate over 30 years, that supports a loan of approximately $370,000.
What is the current average mortgage rate in the US?
As of late July 2026, the average 30-year fixed mortgage rate in the United States is about 6.58% (Freddie Mac weekly survey, July 23, 2026), up slightly from 6.55% the week before and down from 6.74% a year earlier; daily lender quotes run a touch higher, around 6.75%. The 15-year fixed sits around 5.8% to 6.0%.
Rates vary significantly by lender, credit score, and down payment — borrowers with excellent credit (760+) typically qualify for rates 0.25% to 0.50% below average. Source: Freddie Mac Primary Mortgage Market Survey.
What is PMI and when do I have to pay it?
Private Mortgage Insurance (PMI) is required on conventional loans when your down payment is less than 20% of the purchase price. PMI typically costs 0.5% to 1.5% of the loan amount per year and is added to your monthly payment.
Unlike FHA mortgage insurance, PMI can be removed once you reach 20% equity in your home.
What is the difference between a 30-year and 15-year mortgage?
A 30-year mortgage has lower monthly payments but costs significantly more in total interest. A 15-year mortgage has higher monthly payments but saves you tens of thousands in interest and builds equity faster.
On a $400,000 loan at 6.5%, a 30-year mortgage costs $2,528 per month with $510,177 in total interest, while a 15-year at 5.8% costs $3,357 per month with only $204,219 in total interest.
What is an escrow account?
An escrow account is managed by your lender to pay property taxes and homeowner insurance on your behalf. Each month, a portion of your mortgage payment goes into escrow.
The lender then pays your tax and insurance bills when they come due. Most lenders require escrow accounts, especially if your down payment is less than 20%.
What are closing costs on a mortgage?
Closing costs in the US typically range from 2% to 5% of the loan amount. On a $400,000 loan, expect $8,000 to $20,000 in closing costs.
Common items include origination fee (0.5-1%), appraisal ($400-$700), title insurance ($500-$3,500), attorney fees, recording fees, and prepaid items like property taxes and insurance.
What is the difference between pre-qualification and pre-approval?
Pre-qualification is a quick, informal estimate of how much you might borrow based on self-reported financial information. Pre-approval is a formal process where the lender verifies your income, assets, credit score, and employment, then issues a conditional commitment letter.
Sellers strongly prefer buyers with pre-approval letters because they demonstrate serious purchasing ability.
How much down payment do I need?
It depends on the loan type. Conventional loans require a minimum of 3% to 5% down, though 20% avoids PMI.
FHA loans require 3.5% down with a credit score of 580 or higher. VA loans for eligible veterans require 0% down.
USDA loans for rural areas also offer 0% down. First-time buyer programs in many states offer down payment assistance.
Should I buy points to lower my rate?
Buying discount points (each point costs 1% of the loan amount and reduces your rate by about 0.25%) can save money if you plan to stay in the home long enough to recoup the upfront cost. On a $400,000 loan, one point costs $4,000 and saves roughly $65 per month.
The break-even period is about 62 months (just over 5 years). If you plan to stay longer, points can be worthwhile.
What is an ARM and should I consider one?
An adjustable-rate mortgage (ARM) offers a lower fixed rate for an initial period (typically 5, 7, or 10 years), then adjusts annually based on a market index. A 5/1 ARM might start at 5.5% versus 6.5% for a 30-year fixed, saving $250+ per month initially.
ARMs make sense if you plan to sell or refinance before the adjustment period, but carry the risk of significantly higher payments if rates rise.
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