How to use the mortgage calculator
Enter the home price, your down payment as a percentage, the interest rate you have been quoted and the loan term. Choose your state and the calculator fills in that state's average effective property-tax rate — you can overwrite it with the exact rate from the listing or county website.
Add your homeowners insurance quote (or keep the estimate) and any HOA dues to see the full amount you will actually pay each month, known as PITI: principal, interest, taxes and insurance.
The mortgage payment formula
P = loan amount · r = annual rate ÷ 12 · n = years × 12
Example: a $400,000 home with 20% down is a $320,000 loan. At 6.5% for 30 years, principal and interest come to about $2,023 a month. Add 1% property tax ($333) and $2,000 a year of insurance ($167) and the full payment is about $2,523.
15-year vs. 30-year mortgage
| $320,000 loan | 30-year at 6.5% | 15-year at 5.75% |
|---|---|---|
| Monthly P&I | ~$2,023 | ~$2,657 |
| Total interest | ~$408,000 | ~$158,000 |
| Best for | Lower payment, more flexibility | Paying off fast, saving on interest |
A 15-year loan usually has a lower rate and saves a lot of interest, but the monthly payment is roughly 30% higher. Many buyers take a 30-year loan and make extra principal payments when they can.
Ways to lower your monthly payment
- Put 20% down to avoid PMI on a conventional loan.
- Improve your credit score. Moving from 660 to 760 can cut your rate by a full percentage point or more.
- Compare at least three lenders on the same day — rate quotes vary more than most people expect.
- Shop for home insurance every year, especially in high-premium states like Florida, Texas and Louisiana.
- Appeal your property assessment if it looks higher than comparable homes nearby.
Property tax by state
Property tax on a $400,000 home by state. Average effective rates — your county and city rates may differ.
| State | Avg. effective rate | Per year | Per month |
|---|---|---|---|
| Alabama | 0.41% | $1,640 | $137 |
| Alaska | 1.04% | $4,160 | $347 |
| Arizona | 0.62% | $2,480 | $207 |
| Arkansas | 0.60% | $2,400 | $200 |
| California | 0.75% | $3,000 | $250 |
| Colorado | 0.51% | $2,040 | $170 |
| Connecticut | 1.79% | $7,160 | $597 |
| Delaware | 0.57% | $2,280 | $190 |
| District of Columbia | 0.62% | $2,480 | $207 |
| Florida | 0.86% | $3,440 | $287 |
| Georgia | 0.90% | $3,600 | $300 |
| Hawaii | 0.32% | $1,280 | $107 |
| Idaho | 0.63% | $2,520 | $210 |
| Illinois | 2.07% | $8,280 | $690 |
| Indiana | 0.84% | $3,360 | $280 |
| Iowa | 1.50% | $6,000 | $500 |
| Kansas | 1.33% | $5,320 | $443 |
| Kentucky | 0.83% | $3,320 | $277 |
| Louisiana | 0.56% | $2,240 | $187 |
| Maine | 1.24% | $4,960 | $413 |
| Maryland | 1.05% | $4,200 | $350 |
| Massachusetts | 1.14% | $4,560 | $380 |
| Michigan | 1.38% | $5,520 | $460 |
| Minnesota | 1.11% | $4,440 | $370 |
| Mississippi | 0.75% | $3,000 | $250 |
| Missouri | 0.97% | $3,880 | $323 |
| Montana | 0.74% | $2,960 | $247 |
| Nebraska | 1.63% | $6,520 | $543 |
| Nevada | 0.59% | $2,360 | $197 |
| New Hampshire | 1.86% | $7,440 | $620 |
| New Jersey | 2.23% | $8,920 | $743 |
| New Mexico | 0.67% | $2,680 | $223 |
| New York | 1.40% | $5,600 | $467 |
| North Carolina | 0.82% | $3,280 | $273 |
| North Dakota | 0.98% | $3,920 | $327 |
| Ohio | 1.53% | $6,120 | $510 |
| Oklahoma | 0.89% | $3,560 | $297 |
| Oregon | 0.93% | $3,720 | $310 |
| Pennsylvania | 1.49% | $5,960 | $497 |
| Rhode Island | 1.40% | $5,600 | $467 |
| South Carolina | 0.57% | $2,280 | $190 |
| South Dakota | 1.24% | $4,960 | $413 |
| Tennessee | 0.67% | $2,680 | $223 |
| Texas | 1.68% | $6,720 | $560 |
| Utah | 0.57% | $2,280 | $190 |
| Vermont | 1.83% | $7,320 | $610 |
| Virginia | 0.82% | $3,280 | $273 |
| Washington | 0.94% | $3,760 | $313 |
| West Virginia | 0.58% | $2,320 | $193 |
| Wisconsin | 1.73% | $6,920 | $577 |
| Wyoming | 0.58% | $2,320 | $193 |
Frequently asked questions
What is the monthly payment on a $400,000 house?
With 20% down at 6.5% for 30 years, principal and interest are about $2,023 a month. With average property tax and insurance the full payment is roughly $2,400–$2,900, depending on your state.
How much house can I afford?
A common guideline is to keep your total housing payment under about 28% of your gross monthly income, and all debts under about 36%. At $100,000 a year that is a housing payment of around $2,300.
What is PMI and when does it go away?
Private mortgage insurance protects the lender when you put less than 20% down on a conventional loan. It typically costs 0.3–1.5% of the loan per year and can be removed once you reach 20% equity. It is removed automatically at 22%.
Which states have the highest property taxes?
New Jersey, Illinois, New Hampshire, Vermont and Connecticut have the highest average effective property-tax rates, at around 1.8–2.2% of home value per year. Hawaii and Alabama have the lowest.
Does this include closing costs?
No. Closing costs are paid up front and typically run 2–5% of the loan amount. They are not part of the monthly payment.