Mortgage Calculator - Free Monthly Payment Estimator (2026)

How Is My Monthly Mortgage Payment Calculated?

Principal and interest use the standard amortization formula: M = P x [r(1+r)^n]/[(1+r)^n-1], where P is the loan amount, r is the monthly rate and n is payments. For $280,000 at 6.8% over 360 months, r is 0.005667, (1+r)^n is 7.645, and M is $1,825.39. Property tax around 1.1% of value per year and $1,500 insurance add about $475 monthly on a $350,000 home, making the PITI about $2,300 (Source: Freddie Mac PMMS August 2026, 6.82% avg 30-yr fixed — freddiemac.com). PMI at 0.7% per year ($163 monthly on $280,000) applies only when down payment is below 20%. Compare your PITI to gross income with the Home Affordability Calculator. For $350,000 at 6.8% the 15-year builds about $58,000 equity in 5 years versus $22,000 for the 30-year, nearly 2.6× faster, while the 30-year preserves $661 monthly for investing at the August 2026 high-yield 4.25% APY.

What Credit Score Do I Need for the Best Mortgage Rate in 2026?

Credit score is the largest rate driver after loan type. Higher scores unlock lower rates, directly lowering payment and total interest. Estimated rates and payments on a $300,000 30-year loan in August 2026 were:

A full point from 7.5% to 6.5% saves about $180 monthly and $64,800 in interest over 30 years on $300,000. Rates are estimates for planning; your offer depends on loan-to-value, debt-to-income and lender. Raising a 680 score to 760 before applying is often worth a 3- to 6-month delay. Check the refinance math if you already have a loan with the Mortgage Refinance Calculator.

Is a 15-Year or 30-Year Mortgage Better?

On the same $280,000 loan at 6.8%, the trade-off is stark. The 30-year P&I is $1,825 with $377,141 total interest; the 15-year P&I is $2,486 with $167,393 total interest, saving $209,748 but requiring $661 more per month. Over the first 5 years the 15-year builds about $58,000 in equity versus $22,000 for the 30-year, roughly 2.6× faster (Source: amortization formula).

Choose 30-year when cash flow is tight, you plan to invest the $661 difference, or you expect to move within 7 years - the lower payment preserves flexibility. Choose 15-year when you can afford the higher payment, want forced savings, and will stay long enough to benefit from rapid equity. Run both terms in the calculator above and compare total cost, not just payment, with your rent alternative using the Rent vs Buy Calculator.

How Much House Can I Afford on My Salary in 2026?

The widely used 28% front-end rule says PITI should not exceed 28% of gross monthly income. At $100,000 salary ($8,333 monthly) the PITI limit is $2,333, which at 6.8% 30-year with 20% down supports about $360,000 in price after $330 tax at 1.1% and $125 insurance. At $60,000 salary the limit is $1,400 supporting about $208,000 (Source: CFPB, consumerfinance.gov — 28% guideline; Freddie Mac PMMS — rate). Total debt including student, auto and credit cards should stay below 36% to 43% DTI for most conventional loans.

If your PITI already exceeds 28%, increase down payment, choose a lower-price market, or pay down recurring debt to improve DTI before applying. A 5% larger down payment on $350,000 ($17,500) cuts the loan to $262,500 and P&I to $1,711, saving $41,000 in interest and removing $114 in taxes. State taxes vary from 0.3% to over 2%, so adjust the tax assumption for your county.