Mortgage Calculator
Estimate mortgage payment and totals.
Working out a mortgage payment
A mortgage calculator turns three numbers — how much you borrow, the interest rate, and how long you borrow for — into the monthly payment you will actually live with. This one also takes a down payment, so you can enter the property price and see how a larger deposit shrinks both the monthly figure and the total interest paid across the life of the loan.
How to use the Mortgage Calculator
- Enter the Loan Amount — or the full property price if you are using the down payment field.
- Add your Down Payment; it is subtracted before the payment is worked out.
- Enter the Annual Rate (%).
- Set the Term (years) — 15, 20, 25 and 30 are the usual choices — and compare them.
Formula and a worked example
M = P·r·(1 + r)n ÷ ((1 + r)n − 1)
P is the amount actually borrowed (price minus down payment), r the monthly rate, and n the number of monthly payments. This is the principal-and-interest payment only — property taxes, building insurance and any association fees sit on top.
Worked example
On a 300,000 home with 60,000 down, you borrow 240,000. At 6.5% over 30 years the payment is about 1,517 a month and total interest comes to roughly 306,000. Over 15 years the payment rises to about 2,091 but interest falls to around 136,400 — less than half.
Frequently asked questions
Should I choose a 15-year or 30-year mortgage?
A 15-year term costs far less in total interest but demands a much higher monthly payment. Run both above and pick the shortest term you can comfortably sustain.
Does the down payment change my interest rate?
Not in this calculation, but in practice a larger deposit often earns a better rate and can remove mortgage insurance — both worth asking your lender about.
What is not included in this payment?
Property tax, home insurance, mortgage insurance and any service charges. Budget for those separately.
Is a mortgage the same as an EMI?
Mathematically, yes — both use the same amortisation formula. Our EMI calculator is the same engine with an extra-payment field.
Related calculators
Other tools people use alongside the mortgage calculator.