Mortgage Calculator — Calculate Your Monthly Mortgage Payment

Current 30-year fixed mortgage rates average 7.40% as of October 8, 2026, per Freddie Mac's Primary Mortgage Market Survey — near a 3-year high. At that rate, a $300,000 mortgage costs about $2,098/month in principal and interest, while a $400,000 loan runs approximately $2,797/month. Use the free calculator below to see exactly what you'll pay and how extra payments can shorten your loan.

How to Calculate Your Monthly Mortgage Payment

Your monthly mortgage payment is determined by four key inputs: loan amount, interest rate, loan term, and property taxes. An amortization formula converts these into a fixed monthly payment that covers that month's interest charge plus a portion of your remaining principal balance. As of June 11, 2026, the average 30-year fixed mortgage rate is 6.43–6.53% (NerdWallet), with 15-year fixed rates running around 5.8–5.9%. Inflation hitting a 3-year high in June 2026 has pushed rates upward — making it especially important to shop multiple lenders before locking in. Refinance applications rose 15% in the week of June 5 (MBA data), as homeowners who locked in at 7%+ rates last year began finding modest relief windows.

Amortization means your payment amount stays fixed every month, but the split between interest and principal shifts continuously. In the early years of a 30-year mortgage at today's ~6.5% rates, roughly 79% of each payment goes toward interest — meaning most of your early payments barely dent your principal. That ratio gradually reverses; by year 20, more than half of each payment goes toward principal. Even adding $200 extra per month starting in year one can shave 4–6 years off a 30-year loan and save $30,000–$50,000 in total interest at current rates. Also worth noting: CNBC reported escrow costs jumped 45% in 2026 due to rising property taxes and insurance premiums — budgeting for the full PITI is more critical than ever.

What Is a Good Monthly Mortgage Payment?

The widely accepted guideline is that total housing costs — principal, interest, taxes, and insurance — should stay at or below 28% of your gross monthly income. On a $7,500/month gross income, that puts your housing ceiling at about $2,100/month. Most lenders use this 28% benchmark when evaluating mortgage applications, alongside a broader 36–43% debt-to-income limit covering all monthly obligations combined. In June 2026, with 30-year rates at 6.43–6.53% and inflation at a 3-year high, many buyers find that qualifying for the home they want requires a larger down payment or patience — while existing homeowners with 7%+ rates are monitoring the market for refinance opportunities.

In practice: keep housing under 28% of gross income, and total monthly debt (housing + auto + student loans + other) under 36–43%. At June 2026 rates near 6.5%, a household earning $100,000/year can typically qualify for a home in the $260,000–$335,000 range — though your specific debt load, down payment size, and local property tax rate will shift that significantly. Every 0.25% rate change costs roughly $6,000–$8,000 in effective buying power on a typical mortgage, which is why rate-shopping aggressively remains critical. With refinance apps up 15% the week of June 5 (MBA), current homeowners are revisiting their rates too.

What Factors Affect Your Mortgage Payment?

Five variables drive your monthly mortgage cost: loan amount, interest rate, loan term, property taxes, and PMI. Your interest rate carries the most weight — at June 2026 rates, a 0.5% rate difference on a $300,000 loan shifts your monthly payment by about $100 and your total lifetime interest cost by over $36,000 across a 30-year term. Your credit score is the single biggest determinant of the rate you'll be offered — making credit improvement the highest-ROI move before applying.

FICO data shows borrowers with scores above 760 consistently receive rates 0.5–1.5% lower than those in the 620–639 range. At current rates, that scoring gap can add $130–$290 to your monthly payment on a $350,000 mortgage — and $90,000–$120,000 in total interest across a 30-year term. With rates near 6.9% in June 2026, taking 6–12 months to meaningfully improve your credit score before applying can translate to tens of thousands of dollars in long-term savings.

How Much House Can I Afford in 2026?

A useful rule of thumb: keep your home price at 3–5x your annual gross income. On an $80,000 salary, that suggests a target range of $240,000–$400,000. At June 2026's 6.5% rate, a $300,000 loan carries a principal-and-interest payment of approximately $1,896/month; a $400,000 loan runs approximately $2,528/month P&I — with total PITI typically running $2,400–$2,800 depending on your local tax and insurance costs. A $350,000 home with 20% down ($280,000 loan) comes to roughly $1,770/month P&I at today's rates.

Don't underestimate the full cost of homeownership. Closing costs typically run 2–5% of the loan amount ($5,600–$14,000 on a $280,000 loan), and most financial advisors recommend budgeting 1–2% of the home's value annually for maintenance. Escrow costs jumped 45% in 2026 (CNBC), driven by rising property taxes and insurance premiums — meaning your monthly impound payment can be significantly higher than buyers expected even a year ago. In June 2026, with rates at 6.43–6.53% and prices still elevated in most major metros, many buyers are expanding their search to secondary markets — try different price and rate scenarios in the calculator to find a payment that genuinely fits your budget.