Tools
Mortgage Calculator
Use this mortgage calculator to see your monthly payment with property tax, homeowners insurance, PMI and HOA, the full amortization schedule and how much extra payments save. UK buyers can switch to pounds and compare repayment with interest only. Free, no sign-up.
Extra paymentsoptional
Taxes, insurance, PMI and HOAoptional, US
Standard amortization with monthly compounding, the way US and UK lenders quote fixed-rate payments. Closing costs and fees are not included; rely on your lender's documents for final figures.
Result
Enter the home price or loan amount and the interest rate; the payment and schedule update instantly.
- Principal0
- Interest0
- Property tax0
- Insurance0
- PMI0
- HOA0
| Year | Paid | Principal | Interest | Balance |
|---|---|---|---|---|
| Year 1 | 0 | 0 | 0 | 0 |
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How to use the Mortgage Calculator
- Pick the US or the UK
The US tab works in dollars and adds property tax, insurance, PMI and HOA. The UK tab switches to pounds and lets you compare repayment with interest only.
- Enter the price and down payment
Type the home price and the deposit as a percentage or an amount. You can also switch to Loan amount if you already know what you will borrow.
- Add the rate and the term
Enter the yearly note rate and the term in years or months. Choose Payment instead if you want to know how long a set payment takes.
- Add costs and extra payments
Open the optional panels for taxes, insurance, PMI and HOA, and for monthly, yearly or one-off overpayments.
- Read the result and the schedule
The panel shows the payment, total interest and payoff time. Below it, open any year of the amortization schedule or download it as CSV.
Mortgage payment formulas
The calculator uses the standard amortization formula that US and UK lenders use for fixed-rate loans. Every figure below matches what the tool shows.
i = annual note rate ÷ 12M = P × i ÷ (1 − (1 + i)^−n), where P is the loan and n the number of monthsinterest = balance × i; principal = M − interestM = P × i; the full loan is still owed at the end of the termpayment = M ÷ 2, 26 times a year, with i = annual rate ÷ 26PITI = M + property tax ÷ 12 + insurance ÷ 12 + PMI + HOAPMI = loan × PMI rate ÷ 12, until the balance reaches 78% of the home price(1 + i)^12 − 1; this is not the APR, which also includes feesA zero rate is allowed: the payment is then simply the loan divided by the number of months. The calculator keeps full precision and rounds only on screen, so its totals match other standard calculators to the cent.
Mortgage calculator examples
Type the same values into the calculator and you will see exactly these results. The rates are sample figures, not offers.
| Scenario | Loan | Rate and term | Payment | Total interest | Payoff |
|---|---|---|---|---|---|
| $400,000 home, 20% down | $320,000 | 6.5%, 30 years | $2,022.62 | $408,142.36 | 30 years |
| Same loan, 15 year term | $320,000 | 6.5%, 15 years | $2,787.54 | $181,757.84 | 15 years |
| Same loan, $200 extra every month | $320,000 | 6.5%, 30 years | $2,022.62 + $200 | $302,713.69 | 23 years 5 months |
| Same loan, every 2 weeks | $320,000 | 6.5%, 30 years | $1,011.31 per 2 weeks | $314,145.80 | about 24 years 2 months |
| UK repayment mortgage | £250,000 | 4.5%, 25 years | £1,389.58 | £166,874.36 | 25 years |
| UK interest only | £250,000 | 4.5%, 25 years | £937.50 | £281,250.00 | £250,000 still owed |
With 10% down on the same $400,000 home, the loan is $360,000 and principal and interest come to $2,275.44. Add $4,800 a year of property tax, $1,800 of insurance and PMI at 0.5%, and the monthly PITI is $2,975.44. PMI then stops after 109 payments, when the balance falls below $312,000.
Monthly payment per $100,000 borrowed
Principal and interest only, before taxes and insurance. Multiply by your loan in hundreds of thousands; for £ the figures are the same per £100,000.
| Rate | 15 years | 20 years | 25 years | 30 years |
|---|---|---|---|---|
| 5.0% | 790.79 | 659.96 | 584.59 | 536.82 |
| 5.5% | 817.08 | 687.89 | 614.09 | 567.79 |
| 6.0% | 843.86 | 716.43 | 644.30 | 599.55 |
| 6.5% | 871.11 | 745.57 | 675.21 | 632.07 |
| 7.0% | 898.83 | 775.30 | 706.78 | 665.30 |
| 7.5% | 927.01 | 805.59 | 738.99 | 699.21 |
| 8.0% | 955.65 | 836.44 | 771.82 | 733.76 |
We calculated every cell with the formula above. A $320,000 loan at 6.5% over 30 years is 3.2 × 632.07, which gives the $2,022.62 in the first example.
What does this mortgage calculator show?
A mortgage calculator turns four numbers into a monthly payment: the loan, the interest rate, the term and how often you pay. This one also answers the questions that follow the first result. How much interest will you pay in total? When is the loan paid off? What changes if you overpay?
We built it for buyers in the United States and the United Kingdom, so the two markets behave differently:
- US: dollars, a 30 year default term, PITI with property tax, homeowners insurance, PMI and HOA dues, and a biweekly option.
- UK: pounds, a 25 year default term, repayment or interest only, and the balance left when a fixed deal ends.
Both views include a full amortization schedule, a chart of principal and interest by year and a CSV download for your spreadsheet. For savings goals, the compound interest calculator works the same way in reverse.
How is a mortgage payment calculated?
Lenders use the annuity formula. First, they divide the yearly rate by 12 to get a monthly rate. Then they choose one fixed payment that clears the loan exactly after the last month. The formula is M = P × i ÷ (1 − (1 + i)^−n).
Take a $320,000 loan at 6.5% over 30 years. The monthly rate is 0.5417%, and n is 360 months, so the payment is $2,022.62. In month one, interest is $320,000 × 0.5417%, which is $1,733.33. Only $289.28 goes to principal.
That split changes every month. Because the balance falls, the interest part shrinks and the principal part grows, while the payment stays the same. In this example, principal only overtakes interest in year 20. The chart below the calculator shows this crossover clearly. So the early years of a mortgage build little equity, and extra payments made early save the most.
Interest rate or APR: which number goes into a mortgage calculator?
Enter the note rate, the rate your loan actually charges. In the US, you find it on page 1 of the Loan Estimate under Loan Terms. The APR sits on page 3 and is usually higher.
The difference matters. According to the CFPB, the APR adds points, broker fees and other charges to the interest. It helps you compare offers; however, it does not set your payment. If you type the APR, the calculator will overstate the payment.
In the UK, the same logic applies. Your illustration shows an initial rate and an APRC, and only the initial rate drives the monthly payment during the deal.
The results panel also shows an effective annual rate. That figure compounds the monthly rate over 12 months and ignores fees. For example, 6.5% becomes 6.70%. It explains why a monthly rate costs slightly more than the headline number, but it is still not an APR. To check any percentage quickly, try the percentage calculator.
What is PITI, and when do you pay PMI?
In the US, your monthly housing bill is rarely just principal and interest. Lenders usually collect four items together, known as PITI:
- Principal and interest: the loan payment itself.
- Taxes: the yearly property tax bill divided by 12.
- Insurance: the homeowners insurance premium divided by 12.
- PMI: private mortgage insurance on conventional loans with less than 20% down.
HOA dues are separate, but they come out of the same budget, so the calculator adds them too.
PMI does not last forever. According to the CFPB, you can ask to cancel it once the balance reaches 80% of the original value. It also ends automatically when the balance is scheduled to hit 78%. The calculator drops PMI at the 78% point and tells you after how many payments. For a $400,000 home with 10% down at 6.5%, that happens after 109 payments.
Repayment or interest only: how do UK mortgages compare?
With a repayment mortgage, each payment covers interest and part of the capital. At the end of the term, you owe nothing. With interest only, you pay just the interest, and the whole loan is still due on the last day.
The monthly gap looks tempting. On £250,000 at 4.5% over 25 years, repayment costs £1,389.58 a month and interest only costs £937.50. However, interest only costs £281,250 in interest and still leaves £250,000 to repay. Repayment costs £166,874.36 in interest and clears the debt.
MoneyHelper explains that lenders expect a credible repayment plan for interest only loans, such as investments or the sale of another property.
Many UK buyers also take a two or five year fixed deal. Enter that period in the fixed rate field, and the calculator shows the balance you will remortgage. In the repayment example, £219,644.76 remains after five years.
Do extra payments and biweekly payments really save money?
Yes, because every extra dollar goes straight to principal. As a result, all later interest falls, and the loan ends sooner. On the $320,000 example, an extra $200 a month cuts the term from 30 years to 23 years and 5 months. It also saves $105,428.67 in interest.
Biweekly payments work in a similar way. You pay half the monthly amount every two weeks, which adds up to 26 half payments, or 13 full payments a year. In our example, the loan ends after about 24 years and 2 months, and interest falls by $93,996.56.
Before you commit, check three things:
- Some servicers charge fees for biweekly programs; you can often reach the same result by adding one twelfth to each monthly payment.
- UK fixed deals often limit yearly overpayments and charge an early repayment charge above that limit.
- Paying down a low rate loan may not beat high interest debt or an emergency fund.
To see what the same money would earn if you invested it instead, compare it with the inflation calculator and your savings rate.
Why do brokers and agents add a mortgage calculator to their site?
Buyers search for payments long before they call anyone. A good mortgage calculator on a broker, bank or estate agent site answers that question on the spot. It also keeps the visitor on the page long enough to trust the business behind it.
In our work on client sites, a calculator performs best when it does three things. First, it loads fast on a phone. Second, it shows the next step, such as a callback form, right beside the result. Third, it explains the numbers in plain language, as this page tries to do.
We cover these patterns in our article on interactive web design elements. If you want a calculator like this built into your own website, our web design service can plan it with you, from the formulas to the lead form.
Common mortgage calculation mistakes
- ✕MistakeTyping the APR instead of the note rate✓Do this insteadUse the rate from Loan Terms on the Loan Estimate; the APR includes fees and inflates the payment.
- ✕MistakeBudgeting with principal and interest only✓Do this insteadAdd property tax, insurance, PMI and HOA; together they can add hundreds of dollars a month.
- ✕MistakeForgetting that PMI ends✓Do this insteadCheck when the balance reaches 78% of the home price, and ask your servicer to cancel at 80%.
- ✕MistakeChoosing interest only for the lower payment alone✓Do this insteadMake sure you have a real plan to repay the full balance at the end of the term.
- ✕MistakeOverpaying without checking the contract✓Do this insteadLook for prepayment penalties in the US and early repayment charges on UK fixed deals first.
Frequently Asked Questions
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