Mortgage Calculator

Estimate your monthly mortgage payment, total interest, and understand your loan breakdown. Built for US, Canada, UK, and Australia.

🏡 Mortgage Payment Estimator

20% avoids PMI in the US
Monthly Payment: $0.00
Loan Amount: $0.00
Total Interest Paid: $0.00
Total Cost of Loan: $0.00

⚠️ This estimate does not include property taxes, homeowners insurance, PMI (US), LMI (AU), stamp duty (UK), or CMHC insurance (Canada). Consult a local mortgage advisor for a complete quote.

How Mortgage Payments Are Calculated

A mortgage is a loan used to purchase a home, where the property itself serves as collateral. Your monthly payment is determined by the loan amount, interest rate, and loan term using a standard amortization formula:

M = P × [r(1+r)^n] / [(1+r)^n − 1]

Where:

  • M = Monthly payment
  • P = Principal (loan amount after down payment)
  • r = Monthly interest rate (annual rate ÷ 12)
  • n = Total number of payments (years × 12)

Example Calculation

For a $350,000 home with a 20% down payment ($70,000), borrowing $280,000 at 6.2% over 25 years:

Monthly interest rate = 6.2% ÷ 12 = 0.5167%
Number of payments = 25 × 12 = 300
Monthly payment ≈ $1,831

Over the life of the loan, you would pay approximately $269,000 in interest — nearly the original loan amount.

Fixed vs. Variable Rate Mortgages

  • Fixed-rate: Your interest rate stays the same for the entire loan term. Common in the US (30-year fixed) and Canada (5-year fixed). Provides payment stability.
  • Variable/Adjustable-rate (ARM): Your rate changes periodically based on market conditions. May start lower than fixed rates but carries risk if rates rise.

Down Payment Requirements by Region

  • US: Conventional loans typically require 20% down to avoid Private Mortgage Insurance (PMI). FHA loans allow as little as 3.5% down.
  • Canada: Minimum 5% down for homes under $500,000. CMHC mortgage insurance required for down payments under 20%.
  • UK: Minimum 5-10% deposit typically required. Stamp Duty Land Tax (SDLT) applies on purchases over £250,000.
  • Australia: Minimum 5-10% deposit. Lenders Mortgage Insurance (LMI) required for deposits under 20%.

Tips for First-Time Homebuyers

  • Get pre-approved: Know your budget before you start shopping.
  • Compare rates: Even a 0.5% difference can save tens of thousands over the loan term.
  • Consider extra payments: Paying just $100 extra per month toward principal can shorten a 25-year loan by several years.
  • Factor in closing costs: Budget 2-5% of the purchase price for closing costs, legal fees, and inspections.