Mortgage payment
What is the monthly payment on a $400,000 mortgage?
A $400,000 mortgage at a 7% rate over 30 years has a principal-and-interest payment of about $2,661 per month. $400,000 is a midrange-to-higher mortgage, common in higher-cost suburbs. Property tax, insurance, and PMI are on top — the table below shows the principal & interest for every common rate and term.
$400,000 mortgage: monthly payment by rate & term
Estimated principal & interest only, fixed rate. Pick the row for your rate and the column for your term.
| Rate \ Term | 15 yr | 20 yr | 30 yr |
|---|---|---|---|
| 5% | $3,163 | $2,640 | $2,147 |
| 5.5% | $3,268 | $2,752 | $2,271 |
| 6% | $3,375 | $2,866 | $2,398 |
| 6.5% | $3,484 | $2,982 | $2,528 |
| 7% | $3,595 | $3,101 | $2,661 |
| 7.5% | $3,708 | $3,222 | $2,797 |
| 8% | $3,823 | $3,346 | $2,935 |
Income needed for a $400,000 mortgage
A common rule of thumb is the 28% front-end ratio: keep housing costs at or below 28% of gross income. To keep just the $2,661/month principal and interest within that limit, you'd want roughly $114,052 a year. Once property tax, insurance, and any PMI are added, the real income you'd want is higher.
To work it the other way — from your income to a target home price — use the home affordability calculator, or check a specific payment against your budget with Can I afford it?
What this estimate leaves out
- Property tax & insurance: usually escrowed into your payment — often 1–2% of the home's value per year combined.
- PMI: required on most loans with less than 20% down, adding to the monthly cost until you build enough equity.
- HOA dues: common for condos and planned communities, and not part of the loan.
- Down payment: this is the loan amount — your home price is this plus your down payment.
How the payment is calculated
A fixed mortgage uses standard amortization: each month, interest is charged on the remaining balance and the rest of the payment reduces the principal. The formula is principal × monthly rate ÷ (1 − (1 + monthly rate)−months). For $400,000 at 7% over 30 years that's about $2,661 a month in principal and interest.
Want to model your own rate, term, down payment, taxes, and insurance? Use the interactive mortgage payment calculator for the live payment and a full amortization chart.
Frequently asked questions
What is the monthly payment on a $400,000 mortgage?
At a 7% interest rate over 30 years, principal and interest on a $400,000 mortgage are about $2,661 per month. Property tax, homeowners insurance, and PMI are extra. See the table for other rates and terms.
How much income do I need for a $400,000 mortgage?
As a rough guide, lenders like housing costs to stay near 28% of gross income. To keep just the $2,661/month principal and interest within that limit you'd want roughly $114,052 a year — more once taxes and insurance are added.
How much interest will I pay on a $400,000 mortgage?
At 7% over 30 years you'd repay about $958,036 in total, of which roughly $558,036 is interest. A 15-year term has a higher monthly payment but dramatically less total interest.
Does this payment include taxes and insurance?
No. These are principal-and-interest estimates only. Your real monthly payment also includes property tax, homeowners insurance, any HOA dues, and PMI if your down payment is under 20%.
Last reviewed June 20, 2026. Figures based on Federal Reserve benchmark mortgage-rate data. Estimates for general education, not financial advice.