Planning to buy a home? This mortgage calculator turns the home price, your down payment, the interest rate and the term into a monthly payment, and can add yearly property tax and home insurance so you see a fuller monthly cost.
Monthly principal and interest = L × r × (1+r)n ÷ ((1+r)n − 1), where L is the loan (price minus down payment), r the monthly rate and n the months. A 240,000 loan at 6.5% over 30 years is about 1,516.96 a month before tax and insurance.
Enter your numbers and press Calculate.
For information only. Results are estimates based on the numbers you enter and are not financial advice. Lenders and banks may round, charge fees or calculate interest differently.
How to use the Mortgage calculator
- Enter the purchase price of the home.
- Enter your down payment as a percentage of the price (for example 20).
- Enter the yearly interest rate and the term in years (15, 20, 25 or 30 are common).
- Optionally add yearly property tax, yearly insurance and any monthly fees, then press Calculate.
The formula
The principal-and-interest part is a standard amortising payment. Taxes, insurance and fees are simply spread over 12 months and added on top.
Worked example
A 300,000 home with 20% down leaves a loan of 240,000. At 6.5% for 30 years, r = 0.0054167 and n = 360, giving principal and interest of about 1,516.96 a month. Add 3,600 a year of tax (300 a month) and 1,200 of insurance (100 a month) and the estimate becomes about 1,916.96.
FAQ
Is the result exactly what my bank will charge?
Not always. Banks may add fees, mortgage insurance or use different rounding. Use the result as a planning estimate and ask the lender for an official schedule.
Does this work for Islamic home finance?
Murabaha and ijara products quote a profit rate instead of interest. If the profit is charged on a reducing balance with equal monthly payments, the monthly figure works the same way, but check the contract terms.
Why is so much of the total interest?
On long terms the balance stays high for many years, so interest builds up. A shorter term or a larger down payment lowers the total interest.
What down payment should I enter?
Enter whatever you plan to pay upfront as a percentage of the price. Many lenders set a minimum, so check their rules.
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