How much is the mortgage payment on a typical home?
At the 7.4% average 30-year rate, the US median home of $417,500 (September 2026) with 20% down has a principal and interest payment of $2,313 a month. Property tax at the 0.9% national average and $2,625 a year of home insurance bring it to about $2,844. Over 30 years the $334,000 loan costs $498,517 in interest.
How is a mortgage payment calculated?
A fixed-rate mortgage payment comes from the standard amortization formula, which sets one payment that covers each month's interest and repays the loan exactly by the last month:
M = P × r(1 + r)n ÷ ((1 + r)n − 1)
- M is the monthly principal and interest payment.
- P is the amount borrowed: the price less your down payment.
- r is the monthly rate, the yearly rate divided by 12.
- n is the number of payments: 360 for 30 years, 180 for 15.
For $334,000 at 7.4% over 30 years, r = 0.074 ÷ 12 ≈ 0.006167 and n = 360, so M = $2,312.55. Each month, the interest is the balance times r, and the rest of the payment repays principal. Property tax, home insurance, mortgage insurance and HOA dues are then added to reach the full monthly cost.
What is the mortgage payment by home price and rate?
With 20% down on a 30-year loan at 7.4%, principal and interest run $1,662 a month on a $300,000 home, $2,216 on $400,000 and $2,770 on $500,000. Every $100,000 borrowed costs $692 a month at that rate, $600 at 6% and $537 at 5%.
| Home price | 5% | 6% | 7.4% (today) | 8% |
|---|---|---|---|---|
| $200,000 | $859 | $959 | $1,108 | $1,174 |
| $250,000 | $1,074 | $1,199 | $1,385 | $1,468 |
| $300,000 | $1,288 | $1,439 | $1,662 | $1,761 |
| $350,000 | $1,503 | $1,679 | $1,939 | $2,055 |
| $400,000 | $1,718 | $1,919 | $2,216 | $2,348 |
| $500,000 | $2,147 | $2,398 | $2,770 | $2,935 |
| $600,000 | $2,577 | $2,878 | $3,323 | $3,522 |
| $750,000 | $3,221 | $3,597 | $4,154 | $4,403 |
| $1,000,000 | $4,295 | $4,796 | $5,539 | $5,870 |
| Rate | 30-year | 15-year |
|---|---|---|
| 3% | $422 | $691 |
| 4% | $477 | $740 |
| 5% | $537 | $791 |
| 6% | $600 | $844 |
| 6.5% | $632 | $871 |
| 7% | $665 | $899 |
| 7.4% (today) | $692 | $921 |
| 8% | $734 | $956 |
| 9% | $805 | $1,014 |
| 10% | $878 | $1,075 |
Is a 15-year or a 30-year mortgage better?
On the same $334,000 loan, a 15-year mortgage at the 6.71% average costs $2,948 a month, $636 more than a 30-year at 7.4%, but cuts total interest from $498,517 to $196,675, a saving of $301,842. The 30-year leaves more room in the monthly budget; the 15-year builds equity faster and costs far less overall.
| 30-year | 15-year | |
|---|---|---|
| Rate | 7.4% | 6.71% |
| Monthly principal and interest | $2,313 | $2,948 |
| Total interest | $498,517 | $196,675 |
| Total paid | $832,517 | $530,675 |
| Still owed after 5 years | $315,707 | $257,216 |
How much do extra mortgage payments save?
Paying $100 more toward principal each month on the $334,000 loan at 7.4% saves $78,147 of interest and pays it off 3 years 11 months sooner. $500 a month saves $229,567 and 12 years 1 month. Extra principal doesn't lower the required payment; it shortens the loan.
| Extra a month | Interest saved | Paid off in |
|---|---|---|
| $100 | $78,147 | 26 years 1 month |
| $200 | $132,249 | 23 years 3 months |
| $300 | $172,577 | 21 years 1 month |
| $500 | $229,567 | 17 years 11 months |
| $1,000 | $308,632 | 13 years 3 months |
When does mortgage insurance (PMI) go away?
On a conventional loan, your servicer must end private mortgage insurance automatically when the balance is scheduled to reach 78% of the home's original value, or at the loan's halfway point, and you can ask to cancel it at 80%, according to the Consumer Financial Protection Bureau. With 10% down on the $417,500 median home at 7.4%, mortgage insurance at 0.5% of the loan a year adds $157 a month and ends after 10 years. FHA and VA loans follow different rules. Freddie Mac puts the typical cost at $30 to $70 a month for every $100,000 borrowed, depending on your credit score and down payment.
What is an amortization schedule?
A table of every payment that shows how much goes to interest, how much to principal, and what you still owe. Early payments are mostly interest: in the first year of the $334,000 loan at 7.4%, $24,611 of the $27,751 paid goes to interest. Principal overtakes interest in year 22, and the balance falls below half in year 23.
How the calculator works
- Principal and interest use the formula above for a fixed-rate loan. The rate defaults to Freddie Mac's 7.4% 30-year average (6.71% for 15 years).
- Property tax defaults to 0.9% of the price a year, the national effective rate on single-family homes in 2025 from ATTOM. Home insurance defaults to $2,625 a year, the average across Newrez's mortgage loans at the end of 2025 (Newrez). Both vary widely by place, so use your own figures.
- Mortgage insurance of 0.5% of the loan a year applies with less than 20% down, until the balance reaches 78% of the price or the loan's halfway point, following the CFPB's summary of the rules. Your lender sets the actual premium (Freddie Mac on PMI).
- Extra principal is paid every month from the first payment. The schedule recomputes each month's interest on the lower balance, so the loan ends early.
- Payoff dates assume the first payment is next month. Nothing you type leaves your browser.