Mortgage Calculator

What is a mortgage calculator?

A mortgage calculator estimates what you will pay every month for a home loan – not just the loan itself, but the whole housing payment. Lenders in the US and many other countries collect four things each month, often called PITI: principal, interest, property taxes and homeowners insurance. On top of that you may owe private mortgage insurance (PMI) and HOA dues. This free online tool adds them all up, shows how much goes where, and prints a yearly mortgage amortization schedule. You can switch the currency at the top of the page, so it works as a mortgage calculator in USD, in rupees (INR), dirhams for the UAE and Dubai, or any other currency.

How to use the mortgage calculator

Home price – the purchase price of the house.
Down payment – the share of the price you pay upfront. 20% avoids PMI on a conventional loan; FHA loans allow 3.5% and VA loans can need nothing down.
Interest rate – the yearly rate on your mortgage, not the APR.
Loan term – 30-year and 15-year fixed mortgages are the most common.
Property tax – as a percentage of the home's value per year. US rates run from about 0.3% to over 2% depending on the state and county.
Homeowners insurance – the yearly premium.
PMI rate – usually 0.3% to 1.5% of the loan per year, only when you put down less than 20%.
HOA fee and extra payment – optional.

Mortgage calculator formula

The principal-and-interest part of a fixed-rate mortgage uses the standard amortization formula:

M = P × r × (1 + r)ⁿ ÷ ((1 + r)ⁿ − 1)

M = monthly principal and interest payment
P = loan amount = home price − down payment
r = monthly interest rate = annual rate ÷ 12 ÷ 100
n = number of payments = years × 12

Then: total monthly payment = M + property tax ÷ 12 + insurance ÷ 12 + PMI + HOA.

How to calculate a mortgage payment: example

You buy a $400,000 home with 20% down ($80,000), so the loan is $320,000 at 6.5% for 30 years. Then r = 0.065 ÷ 12 = 0.0054167 and n = 360. M = 320,000 × 0.0054167 × 1.0054167³⁶⁰ ÷ (1.0054167³⁶⁰ − 1) = $2,022.62. Property tax at 1.2% is $4,800 a year, or $400 a month, and insurance of $1,500 a year adds $125 a month. With 20% down there is no PMI, so the total monthly payment is $2,547.62. Over 30 years you pay about $408,142 in interest – more than the loan itself.

With only 10% down, the loan becomes $360,000, principal and interest rise to $2,275.44, and PMI at 0.5% adds $150 a month until the balance falls to 78% of the home price.

15-year vs 30-year mortgage

$320,000 loan at 6.5%	Monthly P&I	Total interest
30-year fixed	$2,022.62	$408,142
20-year fixed	$2,385.83	$252,600
15-year fixed	$2,787.54	$181,758

A 15-year mortgage costs about $765 more a month but saves over $226,000 in interest, and 15-year rates are usually a little lower too. A 30-year loan keeps the payment low and leaves room in your budget; you can still pay extra.

Mortgage calculator with extra payments

Enter an extra monthly principal payment to see how fast the loan disappears. On the $320,000 example, an extra $200 a month pays the mortgage off years early and cuts tens of thousands of dollars of interest. Make sure your lender applies extra money to principal, and check for any prepayment penalty – most US conforming loans have none.

What is PMI and when does it go away?

Private mortgage insurance protects the lender, not you, when your down payment is under 20% on a conventional loan. Under the US Homeowners Protection Act you can ask to cancel PMI once your balance reaches 80% of the original home value, and the lender must end it automatically at 78%. FHA loans charge a mortgage insurance premium (MIP) instead, which follows different rules. VA loans have no monthly mortgage insurance but charge a one-time funding fee.

How much house can I afford?

A common rule is the 28/36 rule: keep your total housing payment (PITI) below 28% of gross monthly income and all debts below 36%. With a gross income of $9,000 a month, that points to a housing payment of about $2,520 – close to the example above. Use the mortgage calculator with your salary in mind: change the price until the monthly payment fits. Remember closing costs, usually 2% to 5% of the price, on top of the down payment.

Mortgage vs rent

Comparing a mortgage with rent means looking beyond the monthly figure. Part of each mortgage payment builds equity, but you also pay maintenance (often 1% of the home's value a year), taxes and insurance, and you give up the return your down payment could have earned. Check that return with the compound interest calculator.

Mortgage calculator for India, UAE and other countries

In India a mortgage is usually called a home loan. Lenders quote an EMI that covers only principal and interest; property tax and insurance are paid separately, and there is no PMI. RBI caps the loan at 75% to 90% of the property value. For rupee loans with tax benefits under Sections 24(b) and 80C, use the home loan EMI calculator. In the UAE, expat buyers usually need at least 20% down on a first home under AED 5 million. Canada, the UK, Australia and New Zealand use the same amortization maths, though Canadian fixed-rate mortgages compound semi-annually, so bank figures there can differ slightly.

What is a mortgage, in simple words?

A mortgage is a loan to buy property where the property itself is the security. If you stop paying, the lender can take and sell the home. The legal document that pledges the property is the mortgage deed. Once the loan is repaid, the lender releases its claim and you own the home outright.

Mortgage calculator in Excel

Use =PMT(6.5%/12, 360, -320000) to get $2,022.62. Add tax, insurance and PMI in separate cells for the full payment. For a refinance, enter your current balance as the loan amount, the new rate and the new term, and compare the payment and total interest with what you pay now.

Refinance, extra payments, VA loans and second homes: what to enter

Your full monthly payment – the headline figure is the whole monthly payment, including taxes and insurance held in escrow, not just principal and interest.
Amortization by year – the mortgage calculator schedule gives a yearly breakdown of principal, interest and balance. Multiply the monthly figure by 12 for the yearly payment.
Extra payments and paying off early – add an extra monthly amount and the mortgage calculator shows the months and interest you save. For a one-time lump sum, subtract it from that year's balance and recalculate.
Refinance – to refinance, enter today's balance in the mortgage calculator as the price with 0% down, then the new rate and term.
Second home, land or mobile home – the mortgage calculator maths is the same, but lenders usually want a bigger down payment and charge a higher rate, so adjust those inputs.
VA loan – in the mortgage calculator, set the down payment and PMI to 0 and add the funding fee to the price if you finance it.
Quick and free – it runs in your browser, so there is no xls download or sign-up.

Mortgage calculator: how much can I borrow or afford?

To see how much you can afford or borrow, work back from income. A salary check uses the 28/36 rule above: a housing payment above 28% of gross income is a warning sign. Lenders in the UK and Ireland instead cap borrowing at a multiple of income, often around 4 to 4.5 times. How to calculate mortgage loan eligibility: lenders combine your income, debts and credit score, and each uses its own formula.

How to calculate mortgage interest and repayments

How to calculate mortgage interest for a month: balance × annual rate ÷ 12. In month one of the example that is $320,000 × 6.5% ÷ 12 = $1,733.33. How to calculate mortgage repayments and how to calculate mortgage payment: use the formula above. How to calculate mortgage loan interest over the whole loan: total of all payments minus the loan amount.

Mortgage calculator in rupees and INR

Switch the currency at the top to see every figure in rupees (INR). In India the bank quotes an EMI, which is the principal-and-interest line in the mortgage calculator; set tax and insurance to 0 to match it. How to calculate mortgage stamp duty and how to calculate mortgage registration fee in India: stamp duty is set by each state (commonly 5%–7% of the property value, often lower for women buyers) and registration is usually about 1%.

Mortgage calculator USA, UAE, Dubai and beyond

For the USA, the tool covers PITI and PMI. For the UAE or Dubai, set PMI and property tax to 0 (the UAE has no annual property tax) and use your bank's rate. For New Zealand, Singapore, Germany or Ireland, enter local rates and taxes in the mortgage calculator – the formula does not change.

What is a mortgage loan?

What is mortgage loan in banking terms: a secured loan against property. What is mortgage in banking also covers loans against property you already own. The mortgage calculator meaning is simple: a tool that turns price, rate and term into a mortgage calculator payment figure.

Mortgage calculator repayments: monthly, fortnightly or weekly

Mortgage repayments are usually monthly, but lenders in Australia and New Zealand also offer fortnightly and weekly repayments. Paying half the monthly amount every fortnight means 26 half-payments, or 13 full monthly repayments a year, which shortens the loan and cuts interest. Use this mortgage calculator's extra-payment result to see the effect of that thirteenth payment.

Mortgage calculator x salary: how many times your income?

Many UK and Irish lenders cap a mortgage at around 4 to 4.5 times salary, so a £60,000 income supports roughly a £240,000–£270,000 loan. A mortgage calculator x salary check is a quick start, but lenders also test whether you could afford the repayments if rates rose, so run the payment here at 2–3% above today's rate as well.

Mortgage calculator vs rent

A mortgage calculator vs rent comparison should use the full monthly cost of owning – principal and interest from this calculator plus property tax, insurance, maintenance (about 1% of the price a year) and lost interest on the down payment – against rent plus what you could earn by investing the down payment. Buying tends to win the longer you stay.

Mortgage calculator for Canada: Toronto and Quebec

Canadian fixed-rate mortgages compound interest semi-annually, not monthly, so a Canadian lender's payment is a little lower than this calculator shows at the same quoted rate. Buyers with less than 20% down need mortgage default insurance. On closing costs, a mortgage calculator for Toronto should add both the Ontario and the Toronto municipal land transfer tax, and a mortgage calculator for Quebec should add the provincial "welcome tax" on property transfers.

Mortgage calculator for Melbourne, NZ and the Netherlands

For a mortgage in Melbourne (Victoria), add stamp duty to the upfront cost and check whether the loan is principal-and-interest or interest-only; this calculator shows principal and interest. A mortgage calculator for NZ should reflect that most New Zealand home loans are fixed for only 1–5 years and then re-fixed, so rerun the numbers at each re-fix. In the Netherlands, most new mortgages are annuity or linear mortgages over 30 years; the monthly payment here matches an annuity mortgage (annuïteitenhypotheek).

Frequently asked questions

How do I calculate my mortgage payment?

Use M = P × r × (1 + r)^n ÷ ((1 + r)^n − 1) for principal and interest, then add 1/12 of the yearly property tax and insurance, plus PMI and HOA if they apply.

What is the monthly payment on a $320,000 mortgage?

At 6.5% for 30 years, principal and interest are about $2,022.62 a month. With typical taxes and insurance the full payment is about $2,550.

Does the mortgage calculator include taxes and insurance?

Yes. Enter the property tax rate and yearly homeowners insurance and they are added to the monthly payment, along with PMI and HOA fees.

How much down payment do I need to avoid PMI?

At least 20% of the home price on a conventional loan. PMI ends automatically when the balance reaches 78% of the original value.

Is a 15-year or 30-year mortgage better?

A 15-year mortgage costs more each month but saves a large amount of interest. A 30-year mortgage has a lower payment and more flexibility.

Can I use this mortgage calculator in rupees?

Yes. Change the currency at the top of the page. For Indian home loans with tax benefits, the home loan EMI calculator is a better fit.

What is PITI?

PITI stands for principal, interest, taxes and insurance – the four parts of a typical monthly mortgage payment.

Does this mortgage calculator work for repayments in Canada, Australia or New Zealand?

Yes for the principal-and-interest payment. Canadian fixed-rate mortgages compound semi-annually, so the real payment is slightly lower; in Australia and NZ you can divide the monthly figure for fortnightly or weekly repayments.

Last updated 2026-09-18