Mortgage Calculator
Estimate your monthly mortgage payment with property tax, insurance and fees included, and see how the loan is paid off year by year.
About the Mortgage Calculator
A mortgage is a loan to buy a home, repaid in equal monthly payments over a fixed term, usually 15 to 30 years. Each payment covers that month's interest first; the rest reduces the amount you owe.
Your real monthly cost is more than the loan payment. Lenders in the US and Canada often collect property tax and home insurance with it, and in the US a down payment under 20% usually adds private mortgage insurance (PMI) until you have 20% equity. Flats and condos may also carry a monthly HOA or service charge.
Use the calculator to compare terms and down payments: a bigger down payment shrinks the loan and can remove PMI; a shorter term raises the monthly payment but cuts total interest sharply.
The formula
M = P × i × (1 + i)ⁿ ÷ ((1 + i)ⁿ − 1)
- M
- monthly principal and interest payment
- P
- loan amount: home price minus down payment
- i
- monthly interest rate: yearly rate ÷ 12 ÷ 100
- n
- number of monthly payments: years × 12
Your full monthly payment is M plus property tax ÷ 12, insurance ÷ 12, any mortgage insurance and HOA fees. This assumes a fixed rate for the whole term.
Monthly payment for every 100,000 borrowed
| Interest rate | 15 years | 20 years | 30 years |
|---|---|---|---|
| 4% | 739.69 | 605.98 | 477.42 |
| 5% | 790.79 | 659.96 | 536.82 |
| 6% | 843.86 | 716.43 | 599.55 |
| 6.5% | 871.11 | 745.57 | 632.07 |
| 7% | 898.83 | 775.30 | 665.30 |
| 8% | 955.65 | 836.44 | 733.76 |
Principal and interest only, in any currency. Multiply by your loan ÷ 100,000. Example: a 250,000 loan at 6.5% over 30 years is 632.07 × 2.5 = 1,580.17 a month.
How to read your result
- Monthly payment is everything you pay each month: principal, interest, tax, insurance, mortgage insurance and fees.
- Total interest is what the loan costs you over its life. Try a 15-year term to see how much it drops.
- The yearly chart shows interest taking most of each payment at first, then principal taking over.
- Open the month-by-month table to see your balance after any payment.
Worked example
$400,000 home, 20% down, 6.5% for 30 years
- Loan = $400,000 − $80,000 = $320,000
- i = 6.5 ÷ 12 ÷ 100 = 0.0054167, n = 360
- Principal and interest = $2,022.62 a month
- Property tax at 1.1% = $366.67 a month; insurance $1,500 a year = $125.00 a month
- Total monthly payment = $2,514.28
- Total interest over 30 years = $408,142
Things to keep in mind
- Assumes a fixed rate. Adjustable or tracker rates change the payment when rates move.
- Property tax and insurance vary widely by area; use figures from your local listing or insurer.
- Closing costs, stamp duty and lender fees are paid up front and are not included here.
- PMI rules differ by lender. In the US you can usually ask to cancel it at 80% loan-to-value, and it ends automatically at 78%.
Questions people ask
How much house can I afford?
A common guide is to keep your total housing payment under about 28% of gross monthly income and all debts under 36%. Lenders look at your income, debts, credit and deposit.
Is a 15-year or 30-year mortgage better?
A 15-year loan has higher monthly payments but usually a lower rate and far less total interest. A 30-year loan keeps payments lower and leaves more room in your budget.
What is PMI and when does it stop?
Private mortgage insurance protects the lender when you put down less than 20% on a conventional US loan. It usually costs about 0.3% to 1.5% of the loan a year and can be removed once you owe 80% of the home's original value.
Does paying extra each month help?
Yes. Extra money goes straight to principal, so you pay less interest and finish sooner. Check that your lender has no prepayment penalty.