Mortgage Calculator
Estimate the monthly payment on a home loan after a down payment.
Work out the monthly payment on a mortgage. Enter the property price, your down payment, the annual interest rate and the term to see the monthly payment, the total repaid and how much of that is interest.
Formula / method
Examples
≈ 1,517/mo
≈ 935/mo
Principal, interest and the deposit
A mortgage payment is worked out on the loan amount — the property price minus your down payment. A bigger deposit means a smaller loan, a lower monthly payment, and far less interest over the life of the mortgage.
This calculator focuses on principal and interest. A real monthly housing cost usually also includes property taxes, insurance and sometimes association fees, which vary by location.
Why the term matters so much
Mortgages run for long terms — often 15, 20 or 30 years — so small rate differences compound into large sums. Over 30 years you can easily pay back far more in interest than the original loan. Comparing a shorter term against a longer one reveals the classic trade-off: lower monthly payments versus a much lower total cost.
Where it's used
- Estimating the monthly payment on a home loan before applying
- Comparing a 15-year term against a 30-year term for the same loan
- Seeing how a bigger down payment lowers the payment and total interest
- Checking how a change in interest rate affects affordability
- Working out the total interest paid over the life of a loan
Real-world examples
- A $300,000 home with $60,000 down at 6.5% over 30 years costs about $1,517/month.
- A $200,000 home with $40,000 down at 5% over 25 years is roughly $935/month.
- Switching that first loan from 30 to 15 years raises the monthly payment but sharply cuts the total interest paid.
A bit of history
The word "mortgage" comes from Old French "mort gage," literally "dead pledge": the pledge dies either when the debt is fully repaid or when the borrower defaults and loses the property.
FAQ
Does this include taxes and insurance?
No — it estimates principal and interest only. Property tax, insurance and fees are extra and vary by location.