Mortgage Calculator — Monthly Payment & Total Cost

Calculate your monthly mortgage payment, total interest paid, and full repayment cost for any home loan. Enter your home price, down payment, interest rate, and loan term to get a complete mortgage breakdown instantly.

Used by first-time buyers, property investors, and anyone comparing mortgage deals. Works for any country — just enter your local interest rate and loan term.

Free forever No data stored Instant results Accurate formula

Enter your mortgage details

Home price

Down payment

Annual interest rate (%)

Loan term (years)

Currency

Enter your home price and down payment above to see your mortgage breakdown.

Average mortgage rates (2025): USA ~6.5-7% · UK ~4.5-5.5% · EU ~3.5-4.5% · Canada ~5-6% · Australia ~6-7%

How Mortgage Payments Are Calculated

A mortgage is a loan used to buy property, repaid in equal monthly instalments over a fixed term — typically 15, 20, or 30 years. Each payment covers the interest accrued that month plus a portion of the principal. Early payments are mostly interest; later payments are mostly principal.

Formula: M = P × [r(1+r)ⁿ] ÷ [(1+r)ⁿ − 1]
Where: P = loan amount · r = monthly rate · n = number of payments

Real example — $300,000 home

Home price: $300,000 · Down payment: $60,000 (20%) · Loan: $240,000
Rate: 6.5% · Term: 30 years
Monthly payment: $1,517 · Total paid: $546,200 · Interest: $306,200

How the down payment affects your mortgage

A larger down payment means a smaller loan, lower monthly payments, and significantly less interest paid over the life of the loan. It can also help you avoid Private Mortgage Insurance (PMI) in the US, which lenders require when the down payment is less than 20% of the purchase price.

Fixed vs variable rate mortgages

A fixed-rate mortgage keeps the same interest rate for the entire term — your payment never changes. A variable (adjustable) rate mortgage starts lower but can increase if interest rates rise. This calculator uses fixed rates. For variable rate mortgages, use the current rate as a starting estimate.

When comparing mortgage offers, always compare the APR (Annual Percentage Rate) rather than just the interest rate — APR includes fees and gives a true picture of the total cost.

Frequently Asked Questions

How much house can I afford?

A common guideline is that your monthly mortgage payment should not exceed 28% of your gross monthly income. Your total debt payments (mortgage + car + student loans) should not exceed 36-43%. For example, if you earn $6,000/month, your mortgage payment should ideally be under $1,680.

What is a good mortgage interest rate?

It depends on the country and economic conditions. In the US, rates have ranged from 3-7% over the past decade. In the UK, 4-6% is typical. Always compare multiple lenders — even a 0.5% difference on a $300,000 loan can save or cost $30,000+ over 30 years.

How does the loan term affect payments?

A shorter term (15 years) means higher monthly payments but far less total interest. A 30-year term has lower monthly payments but you pay much more in total. Example: $200,000 at 6.5% — 30-year costs $255,000 in interest; 15-year costs $111,000 in interest.

What is PMI?

Private Mortgage Insurance (PMI) is required by US lenders when your down payment is less than 20%. It typically costs 0.5-1.5% of the loan amount per year. Once you reach 20% equity in your home, you can usually request PMI removal.

Should I make extra mortgage payments?

Yes — extra payments reduce your principal faster, saving substantial interest and shortening your loan term. Even one extra payment per year can cut years off a 30-year mortgage. Check your loan agreement for prepayment penalties before doing this.