Mortgage Calculator

The fields start with sample values (350,000 at 6.5% over 30 years), and the results refresh as you type.

1. Enter the Home price you expect to pay.
2. Type the Down payment, then set Down payment is to Percent of price or An amount. Changing that menu does not change the number in the box, so retype the figure after switching.
3. Enter the Interest rate (%) and the Term (years), anywhere from 1 to 50.
4. Fill in Property tax per year and Home insurance per year as yearly totals. The tool divides each by 12.
5. Add the HOA fee per month, or leave it at 0, and set the Currency symbol.

The large figure is the Total monthly payment. Below it you get the loan amount, principal and interest, tax, insurance and HOA each shown monthly, total interest over the term, the total of all payments, a payoff date, a bar showing the shares and a table of Principal paid, Interest paid and Balance for every year. If the down payment covers the whole price, the tool says there is nothing to borrow.

Principal and interest use the standard amortisation formula M = L × r × (1 + r)^n / ((1 + r)^n - 1). L is the price minus the down payment, r is the annual rate divided by 12 and 100, and n is the years multiplied by 12. At a rate of zero the payment is simply L / n. Tax and insurance are yearly amounts divided by 12, and the HOA fee is already monthly.

Suppose the home costs 400,000, with 20% down, a 6% rate, 30 years, 4,800 a year in property tax, 1,200 a year in insurance and a 50 monthly HOA fee.

The first year repays only 3,929.64 of principal against 19,093.10 of interest, leaving a balance of 316,070.36. The Total of all payments row multiplies the whole monthly figure by the number of months, so it includes tax, insurance and HOA but not the down payment. Because tax and insurance are held constant, real bills will drift as assessments and premiums change.

The balance column is a useful check on how slowly equity builds. In this example less than 2% of the loan is repaid after the first year, and the balance only drops below half of the original loan in the second half of the term. That is normal for a long amortising loan and is the main reason a shorter term, or extra repayments where your lender allows them, saves so much interest.

The term has more effect on lifetime cost than most people expect. For a 300,000 loan at 6%, a 30-year term gives a payment of 1,798.65 and 347,514.57 of interest. A 15-year term raises the payment to 2,531.57 but cuts interest to 155,682.69, under half as much. Run both and weigh the monthly strain against the total cost; a lower payment on a longer loan also leaves a higher balance for longer.

The down payment works the same way. Every unit you put down is a unit you do not borrow, so it lowers the payment and the interest. If you are still saving for it, the savings goal calculator shows how long that takes. For a plain loan without housing costs, the loan EMI calculator is simpler, and the percentage calculator converts a deposit amount into a share of the price.

Not included: private mortgage insurance or similar cover, closing costs, points, arrangement fees, rate changes on adjustable loans and extra repayments. The rate is treated as a nominal annual rate compounded monthly, and some lenders quote rates on a different basis, so ask for the effective figure before comparing. Listings that quote size in different units can be compared with the area converter. The result is an estimate for general information, not financial advice or a loan offer.