Mortgage Calculator
Calculate your monthly payment, total interest, and full amortization schedule instantly — free.
How the Mortgage Calculator Works
Enter your home price, down payment, interest rate and loan term. The calculator instantly computes your monthly payment using the standard amortization formula, and breaks down the full repayment schedule year by year or month by month.
What is included in the monthly payment?
The monthly payment consists of principal repayment, interest on the outstanding balance, and optionally property tax and home insurance divided by 12. This gives you a realistic total monthly housing cost (PITI).
What is an amortization schedule?
An amortization schedule shows how each payment is split between interest and principal over the life of the loan. In the early years, most of your payment goes toward interest. Over time, more goes toward paying off the principal.
How much down payment do I need?
Most lenders require at least 5–20% down. A down payment of 20% or more typically avoids Private Mortgage Insurance (PMI), which can add 0.5–1% of the loan amount per year to your costs.
Is this calculator accurate?
This calculator uses the standard mortgage amortization formula and provides accurate estimates. Actual payments may vary based on your lender's terms, PMI, HOA fees, and local taxes. Always confirm with your lender.
About the Mortgage Calculator
Our free online mortgage calculator computes your monthly mortgage payment, total interest paid over the loan term, and generates a complete amortisation schedule showing the breakdown of principal and interest for every payment. Enter the loan amount, annual interest rate, and loan term, and results appear instantly — no sign-up, no spreadsheet needed.
Understanding your mortgage costs before you commit is one of the most important financial decisions you'll make. Even a small difference in interest rate or loan term can mean tens of thousands of euros or dollars in additional payments over the life of the loan.
What the Mortgage Calculator Shows
- Monthly payment — Your fixed monthly payment covering principal repayment and interest.
- Total amount paid — The total of all payments over the full loan term.
- Total interest paid — How much of your payments go to interest (not principal). This number is often surprising.
- Amortisation schedule — A month-by-month table showing the opening balance, payment amount, interest portion, principal portion, and remaining balance for every payment.
How Mortgage Amortisation Works
In a standard fixed-rate mortgage, your monthly payment stays the same for the entire term. However, the split between principal and interest changes every month. Early in the loan, most of your payment covers interest. As you pay down the principal, more of each payment goes to reducing the balance. This front-loaded interest structure is why paying off a mortgage early (or making extra principal payments) can save substantial amounts of interest.
How to Use the Mortgage Calculator
- Enter loan amount — The total amount you are borrowing (purchase price minus down payment).
- Enter annual interest rate — The annual percentage rate (APR) on the mortgage. Check your loan offer or current market rates.
- Enter loan term — Common terms are 15, 20, 25, or 30 years.
- Click Calculate — Monthly payment, total cost, and amortisation schedule appear immediately.
- Experiment with scenarios — Try different rates, terms, or loan amounts to compare the impact on monthly payments and total cost.
Tips for Reducing Mortgage Costs
- Make extra principal payments — Even one extra payment per year can shorten a 30-year mortgage by several years.
- Choose a shorter term — A 15-year mortgage has higher monthly payments but typically a lower interest rate and far less total interest.
- Increase your down payment — A larger down payment reduces the loan amount and may let you avoid private mortgage insurance (PMI).
- Shop interest rates — A 0.5% difference in rate can save thousands over the life of a loan. Use this calculator to compare scenarios.
Frequently Asked Questions
Does the calculator include property tax and insurance?
The basic calculator shows principal and interest only. Property taxes, home insurance (hazard insurance), and PMI are not included because they vary by location and individual circumstances. Your total monthly housing cost will be higher than the calculated payment.
What is the difference between interest rate and APR?
The interest rate is the base rate charged on the loan balance. APR (Annual Percentage Rate) includes the interest rate plus fees and other costs, giving a more complete picture of the loan's total cost. For comparison purposes, use APR.
Can I calculate an adjustable-rate mortgage (ARM)?
The current tool calculates fixed-rate mortgages. For ARMs, you can calculate each fixed period separately and estimate future payments based on projected rate changes.
How accurate is the calculation?
The calculation uses the standard mortgage amortisation formula and is accurate to the cent for fixed-rate loans with monthly payments.