How is the monthly mortgage payment calculated?

Monthly mortgage payment is calculated using the formula: M = P[r(1+r)^n]/[(1+r)^n-1], where P is the loan amount, r is the monthly interest rate (annual rate divided by 12), and n is the total number of monthly payments. Property tax and insurance are added on top to give the full PITI payment.

What are current mortgage rates in 2026?

As of 2026, average 30-year fixed mortgage rates are approximately 6.5-7.2%. 15-year fixed rates are typically 0.5-0.75% lower at around 5.9-6.5%. Your actual rate depends on your credit score, down payment, lender, and loan type. Always compare rates from at least 3 lenders.

What is PMI and when is it required?

Private Mortgage Insurance (PMI) is required when your down payment is less than 20% of the home purchase price. PMI typically costs 0.5-1.5% of the loan amount annually. It can be removed once you reach 20% equity in your home.

How much house can I afford on a $80,000 salary?

On an $80,000 salary, the 28% rule suggests a maximum monthly housing payment of $1,867. With 2026 rates around 6.8% and a 20% down payment, this typically supports a home price of approximately $280,000-$320,000. Use our Affordability Checker tab for a precise calculation based on your debts and down payment.

What is the difference between principal and interest?

Principal is the original loan amount you borrowed. Interest is the fee charged by the lender for lending you money. In early mortgage payments, most of your payment goes toward interest. As you pay down the loan, more goes toward principal. This is called amortization, and you can see the full breakdown in our amortization schedule.

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Advanced Mortgage Calculator

Q: Is a 15-year or 30-year mortgage better?

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 tens of thousands in interest and builds equity faster. The best choice depends on your monthly cash flow needs and financial goals. Use our scenario comparison tab to see the exact difference with your numbers.

Q: How much does an extra $200/month save on a mortgage?

On a typical $280,000 loan at 6.8% for 30 years, paying an extra $200/month saves approximately $65,000 in interest and pays off the loan nearly 7 years early. Use our Extra Payment tab to calculate your exact savings.

Monthly payments, extra payment savings, affordability check & scenario comparison — all in one place.

Extra Payment Analyzer Affordability Checker Scenario Comparison Interactive Charts

Loan Details

Home PriceUS avg ~$400K

$50K$2M

Down Payment20% · $70,000

0%50%

Interest Rate2026 avg ~6.8%

%/yr

1%15%

Loan Term

Property TaxAnnual

Home InsuranceAnnual

Extra Monthly Payment

$0$2,000/mo

Saving $0 in interest!

Monthly Payment

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Principal · Interest · Tax · Insurance

PMI Required: Down <20%. PMI of —/mo until 20% equity.

Principal & Interest

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Property Tax

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Home Insurance

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Total Monthly

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Total Principal

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Total Interest

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Total P+I

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Loan Amount

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Total Interest

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Total P+I

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Add an Extra Payment

Use the Extra Monthly Payment slider on the left to see how much time & money you can save.

Based on the 28/36 Rule: Your mortgage (PITI) should not exceed 28% of gross income, and total debt should not exceed 36%.

Annual Gross Income

Monthly DebtsCar, credit cards, etc.

Down Payment Available

Maximum Home Price

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Debt-to-Income Ratio—

<28% Safe

28–36% OK

>36% High

Max Loan Amount

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Max Monthly PITI

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Front-End DTI

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Back-End DTI

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Using your current inputs: — rate · — loan

Metric	10 Year	15 Year	20 Year	25 Year	30 Year

Tip: Your current term is highlighted. Green = lowest in each row.

How to Use the Monemint Advanced Mortgage Calculator

This advanced mortgage calculator gives you complete control over your home loan analysis. Beyond basic monthly payments, you can analyze how extra payments save you money, check what you can afford, and compare different loan terms side by side.

Extra Payment Feature

Adding even a small extra monthly payment to your mortgage can save you tens of thousands of dollars in interest. For example, on a $280,000 loan at 6.8% for 30 years, paying an extra $200/month saves approximately $65,000 in interest and pays off the loan nearly 7 years early.

Affordability Checker (28/36 Rule)

The 28/36 rule is the standard guideline used by most US lenders. It states your housing costs (PITI) should not exceed 28% of your gross monthly income, and your total monthly debt obligations should not exceed 36%. Enter your income and existing debts to see exactly how much home you can afford.

Scenario Comparison

Comparing 15-year vs 30-year mortgages reveals a critical tradeoff: the 30-year loan has lower monthly payments but the 15-year saves dramatically more in total interest — often $100,000 or more on a typical home loan. Use the Compare tab to see all terms side by side with your actual numbers.

FAQ

Common Questions

How much does an extra $100/month save me? +

On a typical $280,000 30-year loan at 6.8%, an extra $100/month saves approximately $28,000 in interest and pays off the loan about 3.5 years early. Use the Extra Payment tab with your exact numbers for a precise calculation.

What home price can I afford on my salary? +

The general rule is a home price of 2.5–4x your annual income, depending on your debts, down payment, and local taxes. Use the Affordability Checker tab with your exact income and debts for a personalized answer based on the 28/36 rule.

Is a 15-year or 30-year mortgage better? +

A 15-year mortgage saves significantly more interest and builds equity faster, but has higher monthly payments. A 30-year gives you lower payments and more cash flow flexibility. The Compare tab shows the exact difference with your loan details.

What are current 30-year mortgage rates in 2026? +

As of 2026, average 30-year fixed mortgage rates are approximately 6.5–7.2%. Your actual rate depends on credit score, down payment, and lender. Rates for 15-year loans are typically 0.5–0.75% lower.