Monthly mortgage payment calculator
Estimate your monthly mortgage payment based on price, down payment, rate, and term.
This estimates a monthly mortgage payment from the property price, deposit, interest rate and term using the standard amortisation formula, entirely in your browser. It calculates principal and interest only — the figure a lender quotes usually also includes property tax, buildings insurance and, where the deposit is small, mortgage insurance, which together can add a substantial amount to the monthly total. American lenders call the full figure PITI. On a $400,000 home with 20 percent down at 6.5 percent over 30 years, principal and interest come to roughly $2,022, while property tax and insurance commonly add $400 to $700 more depending on the state. Putting down less than 20 percent typically triggers private mortgage insurance, often 0.5 to 1.5 percent of the loan each year, until enough equity accumulates. Treat the output as the loan arithmetic, not an affordability verdict.
About the Mortgage Calculator
Quickly estimate the monthly payment on a home loan. Enter the home price, your down payment, the annual interest rate, and the loan term in years to see your monthly principal-and-interest payment, the total interest paid over the life of the loan, and the total cost of the home. All math happens locally in your browser.
How to use the Mortgage Calculator
- 01Enter the home's purchase price.
- 02Enter your down payment amount.
- 03Type the annual interest rate of your mortgage.
- 04Choose the loan term (commonly 15 or 30 years) to see the full breakdown.
Why use our Mortgage Calculator
- 01
Real amortization math
Same formula used by lenders for fixed-rate mortgage payments.
- 02
Down payment aware
Automatically subtracts your down payment from the home price before calculating.
- 03
Instant breakdown
Monthly payment, total interest, and total cost update as you type.
- 04
Completely private
Your home price and loan details stay in your browser.
What is included in a monthly mortgage payment?
In the US the monthly payment is commonly described as PITI: principal, interest, taxes and insurance. This calculator produces the first two. Property tax varies enormously by location — roughly 0.3 percent of assessed value annually in some states and above 2 percent in others — and is usually collected monthly into an escrow account rather than billed separately. Homeowners insurance is typically another several hundred to a couple of thousand per year. If the deposit is below 20 percent, private mortgage insurance is usually required, adding roughly 0.5 to 1.5 percent of the loan amount annually until sufficient equity is built. Where the property is a flat or in a managed development, service charges or homeowners association fees are a further monthly cost. Adding these together can raise the true monthly outgoing well above the principal-and-interest figure, which is why a payment that looks affordable in isolation sometimes is not.
How the deposit changes everything
The deposit does more than reduce the amount borrowed. It determines the loan-to-value ratio, which is the primary factor lenders use to price risk, and rates step down at conventional thresholds — commonly 95, 90, 85, 80, 75 and 60 percent LTV. Moving from a 10 percent to a 15 percent deposit can therefore reduce the rate as well as the balance, compounding the saving. Below 20 percent in the US, mortgage insurance applies and is a pure cost with no benefit to the borrower. The interaction is worth modelling rather than assuming: a slightly larger deposit that crosses a threshold can be worth far more than the same money applied as an overpayment later. Against that, emptying savings entirely to maximise a deposit leaves no reserve for the moving costs, repairs and rate changes that reliably follow a purchase, so the largest possible deposit is not automatically the right one.
Fixed periods, reversion rates and the real term
In the UK and much of Europe, a mortgage advertised as a two-year or five-year fix is not a two-year loan — it is typically a 25 or 30 year term with a fixed rate for the initial period, after which it reverts to the lender's standard variable rate unless you remortgage. The reversion rate is usually materially higher, so the payment shown here for the fixed period is not what you will pay afterwards. Modelling the loan at the fixed rate for the whole term therefore understates the lifetime cost unless you remortgage at each expiry, which most borrowers do. In the US, 15 and 30 year fully fixed terms are standard and this issue does not arise, though adjustable-rate mortgages behave similarly. The practical approach is to calculate at the initial rate to check affordability now, then recalculate at a plausible reversion or renewal rate to check you could still afford it if rates moved against you.
Monthly costs beyond principal and interest
| Cost | Typical range | Applies when |
|---|---|---|
| Property tax | 0.3–2.2% of value per year | Almost always (US) |
| Buildings insurance | £150–£600 / $800–$2,000 per year | Required by lenders |
| Mortgage insurance (PMI) | 0.5–1.5% of loan per year | US, deposit under 20% |
| Service charge / HOA | Highly variable | Flats and managed developments |
| Maintenance reserve | ~1% of value per year | Prudent for any freehold |
This calculator returns principal and interest only. Add the applicable rows to estimate a true monthly outgoing.
Frequently asked questions
Does this include property tax and insurance?
No. It calculates principal and interest only. Property tax, buildings insurance, mortgage insurance and service charges are additional and can add substantially to the monthly total.
What is PITI?
Principal, interest, taxes and insurance — the four components of a typical US monthly mortgage payment. This calculator covers the first two.
How much deposit do I need?
It varies by lender and market, but 20% is the threshold that avoids mortgage insurance in the US, and rates typically step down at 95, 90, 85, 80 and 75% loan-to-value.
Why does a bigger deposit help twice?
It reduces the amount borrowed and can move you into a lower loan-to-value band with a better rate. Crossing a threshold can be worth more than the same money paid later.
What happens when my fixed period ends?
The loan usually reverts to the lender's standard variable rate, which is typically higher. Most borrowers remortgage at that point rather than letting it revert.
Should I model the whole term at my fixed rate?
For affordability now, yes. Then recalculate at a higher plausible rate to check you could still afford the payment if rates moved against you.
Does overpaying reduce the term or the payment?
That depends on your lender — most let you choose. Reducing the term saves more interest; reducing the payment improves monthly cash flow.
Is my financial information uploaded?
No. Everything is calculated in your browser and nothing you enter leaves your device.
Is this a mortgage offer?
No. It is an arithmetic estimate. Actual borrowing depends on affordability assessment, credit history and the lender's criteria. Speak to a qualified mortgage adviser.
Last updated
Uses the standard fixed-rate amortisation formula. Cost ranges are indicative and vary by jurisdiction and lender. Not financial advice.