How to Calculate Your Monthly Mortgage Payment (2026)
Updated February 2026 · 9 min read
Quick Answer
On a $300,000 loan at 6.5% for 30 years the monthly principal and interest payment is approximately $1,896 per month. Add property taxes and insurance for your full payment.
Mortgage Payment Examples
| Loan Amount | Rate | Term | Monthly P and I |
|---|---|---|---|
| $150,000 | 6.0% | 30 years | $899 |
| $200,000 | 6.0% | 30 years | $1,199 |
| $300,000 | 6.5% | 30 years | $1,896 |
| $400,000 | 6.5% | 30 years | $2,528 |
| $500,000 | 7.0% | 30 years | $3,327 |
| $300,000 | 6.5% | 15 years | $2,614 |
What Makes Up Your Full Mortgage Payment
Principal
The portion of your payment that reduces your loan balance. In early years most of your payment goes to interest. Over time more goes to principal.
Interest
The cost of borrowing money. On a $300,000 loan at 6.5% you pay approximately $1,625 in interest in month one alone.
Property Taxes
Most lenders collect property taxes monthly and hold them in escrow. Taxes are typically 1-2% of home value per year.
Homeowners Insurance
Required by lenders. Typically $100-200 per month depending on your home value and location.
PMI if applicable
Required when your down payment is under 20%. Costs 0.5-1.5% of loan per year. Can be removed once you reach 20% equity.
15 Year vs 30 Year Mortgage
30 Year
Plus: Lower monthly payment
Minus: Pay far more in interest
15 Year
Plus: Save over $212,000 in interest
Minus: Higher monthly payment
Calculate Your Mortgage Payment Free
Use our free mortgage calculator to instantly see your exact monthly payment, total interest and full amortization schedule.
Try the Free Mortgage CalculatorFrequently Asked Questions
How is a monthly mortgage payment calculated?
A monthly mortgage payment is calculated using the loan amount, annual interest rate and loan term. The formula factors these three inputs to determine your exact monthly principal and interest payment.
What is included in a monthly mortgage payment?
A full mortgage payment includes principal, interest, property taxes, homeowners insurance and PMI if your down payment was less than 20 percent. This is called PITI.
How much mortgage can I afford?
A common guideline is that total monthly housing costs should not exceed 28 percent of your gross monthly income. Total debt payments should not exceed 36 percent of gross income.
What is the difference between a 15 year and 30 year mortgage?
A 15 year mortgage has higher monthly payments but you pay far less total interest. A 30 year mortgage has lower payments but costs much more in total interest over the life of the loan.
What is PMI on a mortgage?
PMI is Private Mortgage Insurance required when your down payment is less than 20 percent. It typically costs 0.5 to 1.5 percent of the loan per year and can be removed once you reach 20 percent equity.