Mortgage Calculator
Mortgage Calculator
Estimate your total estimated monthly home loan installments
Quick answer
A mortgage calculator works out your monthly home loan payment with M = P × r × (1 + r)n ÷ [(1 + r)n − 1], then adds property tax and insurance. For example, a 400,000 home with 80,000 down, a 30-year term and a 6.5% rate has a principal and interest payment of 2,022.62 a month. With 4,800 a year in property tax and 1,200 in insurance, the total is 2,522.62 a month.
Our free mortgage calculator estimates your full monthly house payment, not just the loan part. Enter the home price, down payment, loan term and interest rate, add optional property tax and home insurance, and the mortgage calculator shows your total monthly payment, the principal and interest portion, monthly tax and insurance, and the amount you are borrowing.
Use it to see what you can afford before you talk to a lender, compare interest rates and terms, or decide how big a down payment to make. It works in any currency and runs entirely in your browser.
What Is a Mortgage?
A mortgage is a loan used to buy a home, where the property itself secures the loan. You repay it in equal monthly instalments over a set term, often 15 to 30 years. Each payment covers interest first, with the rest reducing the balance, a process called amortisation. Read more about how a mortgage loan works.
M = P × r × (1 + r)n ÷ [(1 + r)n − 1]
Total monthly payment = M + (Property tax ÷ 12) + (Insurance ÷ 12)
P = home price − down payment, r = annual rate ÷ 12 ÷ 100, n = years × 12
How to Use the Mortgage Calculator
Follow these five quick steps:
Step 1: Enter the Home Price and Down Payment
Type the purchase price, for example 400,000, and how much you will pay upfront, for example 80,000 (20%). The mortgage calculator borrows the difference.
Step 2: Enter the Loan Term and Interest Rate
Add the length of the loan in years, for example 30, and the yearly fixed interest rate, for example 6.5.
Step 3: Add Property Tax and Home Insurance (Optional)
Enter yearly property tax and home insurance costs if you want the full monthly figure, for example 4,800 and 1,200. Leave them blank to see only the loan payment.
Step 4: Click Calculate Payments
Press Calculate Payments. The mortgage calculator applies the standard amortisation formula instantly.
Step 5: Review Your Monthly Payment Breakdown
You will see the Total Estimated Monthly Payment, the Principal & Interest part, the Monthly Property Tax, the Monthly Home Insurance and the Loan Amount.
Mortgage Calculation Example
- Loan amount: 400,000 − 80,000 = 320,000.
- Monthly rate: 6.5% ÷ 12 = 0.5417%; payments: 30 × 12 = 360.
- Principal and interest: 2,022.62 a month.
- Tax and insurance: 4,800 ÷ 12 = 400 and 1,200 ÷ 12 = 100.
- Total monthly payment: 2,022.62 + 400 + 100 = 2,522.62.
- Total interest over 30 years: about 408,142.
How the Interest Rate Changes Your Payment
Monthly principal and interest on a 320,000 loan over 30 years:
| Interest rate | Monthly payment | Total interest | Total repaid |
|---|---|---|---|
| 5% | 1,717.83 | 298,419 | 618,419 |
| 6% | 1,918.56 | 370,682 | 690,682 |
| 6.5% | 2,022.62 | 408,142 | 728,142 |
| 7% | 2,128.97 | 446,428 | 766,428 |
| 8% | 2,348.05 | 525,297 | 845,297 |
15-Year vs 30-Year Mortgage
A shorter term means higher monthly payments but far less interest. For 320,000 at 6.5%:
| Term | Monthly payment | Total interest |
|---|---|---|
| 15 years | 2,787.54 | 181,758 |
| 20 years | 2,385.83 | 252,600 |
| 25 years | 2,160.66 | 328,199 |
| 30 years | 2,022.62 | 408,142 |
How Much House Can You Afford?
- 28% guideline: many lenders like your total housing payment to stay under about 28% of gross monthly income.
- 36% guideline: all debt payments together are often kept under about 36% of income.
- Down payment: 20% or more usually means better rates and, in some countries, no mortgage insurance.
- Extra costs: budget for maintenance, utilities, HOA or service charges, and closing costs.
Tips to Lower Your Mortgage Cost
- Improve your credit score before applying to qualify for a lower rate.
- Make a bigger down payment to borrow less.
- Compare several lenders; even 0.25% lower can save thousands.
- Pay a little extra each month toward principal to finish years early.
- Other loans? Our EMI Calculator works for car and personal loans too.
Who Uses a Mortgage Calculator?
First-time buyers use a mortgage calculator to set a realistic budget. Homeowners use a mortgage calculator to check whether refinancing at a lower rate makes sense, and property investors use it to estimate rental cash flow. Because this mortgage calculator includes tax and insurance, it gives a more realistic picture than a loan-only calculator.
Disclaimer
This mortgage calculator provides estimates for a fixed-rate loan. Your lender's actual offer may include fees, mortgage insurance or a variable rate. It is not financial advice.
Frequently Asked Questions
How is a monthly mortgage payment calculated?
The loan amount, monthly interest rate and number of payments go into the formula M = P × r × (1 + r)^n ÷ [(1 + r)^n − 1]. Property tax and insurance are then divided by 12 and added.
What is included in the total monthly payment?
This mortgage calculator includes principal, interest, property tax and home insurance. It does not include mortgage insurance, HOA fees or maintenance.
Is a 15-year or 30-year mortgage better?
A 15-year loan costs much less interest overall but has higher monthly payments. A 30-year loan is more affordable each month but costs more in total.
How much should my down payment be?
20% is a common target because it lowers your loan amount and can help you avoid mortgage insurance, but many loans accept less.
Does a lower interest rate make a big difference?
Yes. On a 320,000 loan over 30 years, going from 7% to 6% saves about 210 a month and more than 75,000 in total interest.
Is the mortgage calculator free?
Yes. It is free, needs no sign-up and works on phones, tablets and computers.