Mortgage Calculator
Enter a home price, a deposit, a rate and a term, and see the monthly payment along with the part most calculators hide — how much of the total is interest, and how slowly the balance actually falls in the early years.
How to use the Mortgage Calculator
- Enter the home price and the deposit you plan to put down.
- Add the annual interest rate and the term in years — 15, 20, 25 and 30 are the usual choices.
- Optionally add yearly property tax and home insurance to see a full monthly figure, then open the year-by-year table to see how the balance falls.
About the Mortgage Calculator
A mortgage payment is calculated so that the same amount clears the loan exactly at the end of the term, which means the split between interest and principal changes every single month. In year one of a thirty-year loan, most of what you pay is interest; the crossover point where you start paying off more principal than interest usually arrives somewhere around year eighteen. The amortisation table here makes that visible year by year. Property tax and home insurance are optional inputs because lenders often quote them together with the loan payment as an escrow figure, and the number you are given by an agent may or may not include them.
Please note: this is an educational estimator. It does not account for processing fees, insurance bundling, prepayment penalties, floating-rate resets or local tax rules, so the figure on a real agreement will differ. Use it to compare options, then confirm with your lender or a licensed financial adviser. Full disclaimer.
Frequently asked questions
How is a monthly mortgage payment calculated?
It uses the standard amortisation formula: the loan amount times the monthly rate, divided by one minus (1 plus the monthly rate) to the power of minus the number of payments. The result is a level payment that clears the loan exactly at the end of the term.
Why is my total interest so much larger than I expected?
Interest is charged on the outstanding balance each month, and early on that balance is nearly the whole loan. Over thirty years the interest on a typical loan can approach or exceed the amount borrowed, which is why shortening the term or overpaying early has such a large effect.
Does this include PMI, HOA fees or closing costs?
No. It covers principal, interest and optionally property tax and insurance. Mortgage insurance is usually required below a 20% deposit, and HOA fees and closing costs are separate — ask your lender for the full figure.
Is a shorter term always better?
A shorter term costs far less in total interest but demands a higher monthly payment. The right choice is the shortest term whose payment you can comfortably afford in a bad month, not just an average one.
Does it show how the interest reduces over time?
It uses the standard reducing-balance formula, so the monthly payment and the total interest reflect a full amortization schedule even though the house payment is shown as a single figure. Total interest is usually the more revealing number: a longer term lowers the monthly payment and raises what the home costs overall.
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