Mortgage Calculator
Estimate your monthly mortgage payment and the true cost of your home loan.
How to use the Mortgage Calculator
- Enter the home price.
- Enter your down payment.
- Enter the interest rate and term.
- See your monthly principal & interest, plus total cost.
Loan = Price − Down payment, then EMI = L × r(1+r)^n / ((1+r)^n − 1)
About the Mortgage Calculator
This calculator subtracts your down payment from the home price to get the loan amount, then applies the standard amortisation formula: M = L × r(1+r)^n ÷ ((1+r)^n − 1), where r is the annual rate divided by 12 and n is the term in months. It returns the monthly principal and interest payment, the total of all payments over the term, and how much of that total is interest.
The interest total is the number worth sitting with. It is what moves most when you compare a 30-year term against a 15-year one, or shop one rate against another. The monthly payment tells you what you can carry; the total tells you what the house actually costs.
This is principal and interest only. A real monthly housing bill usually also includes property tax, homeowners insurance, mortgage insurance or PMI where the down payment is small, HOA or service charges, and lender fees — so your true outgoing will be higher than the figure shown here, sometimes substantially. It also assumes a fixed rate for the whole term, so it does not model adjustable or variable rates, and it makes no allowance for overpayments, offset accounts or refinancing. For shorter fixed-instalment borrowing see the car loan calculator or the general loan calculator.
Frequently asked questions
Does this include property tax and insurance?
No. It shows principal and interest only, which is what lets you compare loan offers cleanly. Property tax, homeowners insurance, PMI and any HOA fees are on top, and together they can add a significant amount to the monthly bill. Add your local figures separately.
Why is my lender’s quoted payment higher than this?
Usually because the lender is quoting the full escrowed payment — principal, interest, taxes and insurance, plus mortgage insurance if applicable. This calculator quotes only the loan portion, so the two are not measuring the same thing.
How much does a bigger down payment help?
It reduces the amount borrowed, which lowers both the monthly payment and the total interest proportionally. Depending on the lender and the loan type, a larger down payment may also affect whether mortgage insurance is required — that part is not modelled here.
Can I use it for an adjustable-rate mortgage?
Only as a snapshot. It assumes one fixed rate for the entire term, so it will show what payments would be if the current rate never changed. For an ARM, that is true only during the initial fixed period.
Can I model overpayments?
No. The formula assumes equal payments for the full term. Overpaying reduces the balance faster and cuts total interest, but this calculator will not show that — you would need an amortisation schedule that accepts extra payments.
Guides & articles about this tool
First-Time Home Buyer: Understanding Your Mortgage Payment
Let’s go through your mortgage payment in plain terms so you don’t stare at a bank statement wondering where half your money’s gone. This explains what’s…
How Loan EMI Is Calculated (With a Worked Example)
This is how EMI works: each month you make a single fixed payment covering both the interest owed and part of the loan itself. Below we break down the for…