🏠 Mortgage Calculator
How It Works
Estimate mortgage payments, affordability, and total interest for home loans. Use Mortgage Calculator to explore how the main financial inputs change the payment, cost, return, or cash-flow result before making a decision.
The result is most useful when the inputs match the definitions used by this calculator. For this tool, the underlying method is: Monthly Payment = (P - D) × [r(1+r)^n] / [(1+r)^n - 1], where P = home price, D = down payment, r = monthly rate, n = payments. Compare the output with the worked example, then change one meaningful input at a time to see how the result responds.
What Is Mortgage?
A mortgage is a loan secured against property, typically repaid through scheduled payments over a number of years. Mortgage calculations show how principal, rate, and term affect repayment.
How to interpret the result: Compare the output with the worked example and with another scenario using the same definitions. For this calculator, the key relationship is Monthly Payment = (P - D) × [r(1+r)^n] / [(1+r)^n - 1], where P = home price, D = down payment, r = monthly rate, n = payments.
How to Calculate Mortgage
The page uses the method shown in the Formula section: Monthly Payment = (P - D) × [r(1+r)^n] / [(1+r)^n - 1], where P = home price, D = down payment, r = monthly rate, n = payments. Keep the inputs in matching units, then change one meaningful input at a time when testing scenarios.
Important limitation: Actual housing costs can also include taxes, insurance, fees, down payments, and changing rates. The calculator is for planning, not a lender quote. Review the mortgage inputs and units before relying on the result.
Principal and interest are only part of housing cost
A principal-and-interest estimate is useful for comparing loan structures, but property taxes, insurance, association costs, maintenance, closing costs, and other expenses can materially change the cost of owning a home.
Down payment and mortgage cost
A larger down payment reduces the amount borrowed and can reduce interest, but the right comparison also depends on liquidity, rates, fees, and the opportunity cost of the cash used upfront.
Compare payment and total interest
Two mortgages with similar monthly payments can have very different terms and total interest. Compare rate, term, principal, and total repayment together.
When to Use This Calculator
Use Mortgage Calculator to explore how the main financial inputs change the payment, cost, return, or cash-flow result before making a decision.
Practical tip: For this Mortgage Calculator, change one financial assumption at a time—such as the rate, amount, contribution, fee, or tenure shown in the inputs—so you can see which factor drives the result.
Formula
Monthly Payment = (P - D) × [r(1+r)^n] / [(1+r)^n - 1], where P = home price, D = down payment, r = monthly rate, n = payments
Example
A $400,000 home with 20% down ($80,000) at 6.5% for 30 years has a monthly payment of approximately $2,022. Use the calculator to test a second scenario and see how the result changes when one important assumption is adjusted.