Buying a home is the largest financial commitment most people ever make. Before you speak to a lender, before you make an offer, before you even book a viewing — you need one number: what will this cost me each month?

This mortgage calculator gives you that number in seconds. Enter your home price, down payment, interest rate, and loan term. Get your exact monthly payment, total interest cost, and a complete picture of what you will actually pay over the life of the loan.

No guessing. No spreadsheets. No waiting for a callback from a broker.

What the Mortgage Calculator Tells You

The calculator takes five inputs and returns a complete mortgage picture.

What you enter:

Your home price — the purchase price of the property you are buying or the current value if you are refinancing. Your down payment as a dollar amount or percentage — the money you put in upfront, which directly determines your loan amount and interest rate. Your loan term in years — typically 15 or 30 years in the US, though 10, 20, and 25-year terms are also common. Your annual interest rate — from your lender's quote, a current market rate, or a rate you are comparing. Optional: property taxes, home insurance, and HOA fees to calculate your full monthly housing cost.

What you get:

Your monthly principal and interest payment — the core mortgage payment. Your total monthly payment including taxes and insurance if entered. The total amount paid over the full loan term. Total interest paid — often the most eye-opening figure. A year-by-year or month-by-month amortisation schedule showing how your balance falls over time.

How Does a Mortgage Calculator Work?

A mortgage calculator works by applying the standard loan amortisation formula to your inputs. Understanding this formula helps you understand why certain decisions — like a larger down payment or a shorter loan term — have such a significant impact on your total cost.

The mortgage payment formula:

M = P × [r(1 + r)ⁿ] ÷ [(1 + r)ⁿ − 1]

Where:

M = Your monthly payment (what you want to find) P = Principal — the loan amount (home price minus down payment) r = Monthly interest rate (annual rate divided by 12, expressed as a decimal) n = Total number of monthly payments (loan term in years multiplied by 12)

Worked example — $400,000 home, 20% down, 6.75% rate, 30 years:

Home price: $400,000 Down payment: $80,000 (20%) Loan amount (P): $320,000 Annual rate: 6.75%, so monthly rate r = 6.75% ÷ 12 = 0.5625% = 0.005625 Loan term: 30 years, so n = 30 × 12 = 360 payments

Step 1: Calculate (1 + r)ⁿ = (1.005625)³⁶⁰ = 7.6861 Step 2: Numerator = r × (1 + r)ⁿ = 0.005625 × 7.6861 = 0.043235 Step 3: Denominator = (1 + r)ⁿ − 1 = 7.6861 − 1 = 6.6861 Step 4: Divide = 0.043235 ÷ 6.6861 = 0.006466 Step 5: Multiply by P = 0.006466 × 320,000 = $2,069.12/month

Total paid over 30 years: $2,069.12 × 360 = $745,083 Total interest: $745,083 − $320,000 = $425,083

That $425,083 in interest is why comparing rates, terms, and down payments matters so much. A half-point difference in rate on a $320,000 loan saves or costs over $35,000 in total interest over 30 years.

The mortgage calculator above runs this calculation instantly for any combination of inputs, so you can compare scenarios in seconds rather than doing the arithmetic manually.

How Mortgage Interest Calculation Works

Most homebuyers understand that they pay interest on their mortgage — but the mechanics of how mortgage interest works month by month are less well understood. This understanding directly affects decisions about prepayment, refinancing, and loan term selection.

Mortgages use simple interest calculated on the remaining balance each month.

At the start of your loan, almost all of your monthly payment goes to interest. As the balance falls, more of each payment goes to principal. This is the amortisation process.

Month-by-month breakdown — $320,000 at 6.75% over 30 years:

Month 1: Opening balance $320,000. Interest = $320,000 × 0.005625 = $1,800.00. Principal reduction = $2,069.12 − $1,800.00 = $269.12. Closing balance = $319,730.88.

Month 12: Opening balance $316,512. Interest = $1,780.38. Principal = $288.74. Closing balance = $316,223.

Month 60 (Year 5): Opening balance $305,220. Interest = $1,716.86. Principal = $352.26. Closing balance = $304,868.

Month 180 (Year 15): Opening balance $272,450. Interest = $1,532.53. Principal = $536.59. Closing balance = $271,913.

Month 360 (Year 30): Opening balance $2,057. Interest = $11.57. Principal = $2,057.55. Balance = $0.

The key insight: In the first year, roughly 87% of every payment goes to interest. By year 15, still roughly 74%. This is why making extra payments in the early years of a mortgage produces dramatically larger savings than making the same extra payments later — earlier prepayments eliminate interest compounding on a larger remaining balance.

How to Use the Mortgage Calculator — Step by Step

Step 1 — Enter your home price

This is the full purchase price of the property. If you are refinancing, use your home's current estimated value. If you are still shopping, use the price of the home you are considering, or use a round number to model what you can afford in a specific price range.

Step 2 — Enter your down payment

Your down payment determines two critical things simultaneously: your loan amount (which affects your monthly payment) and your loan-to-value ratio, or LTV (which affects your interest rate and whether you need private mortgage insurance, or PMI).

The conventional minimum in the US is 3% for some loan types, though 20% is the threshold that eliminates PMI. FHA loans allow 3.5% down with qualifying credit scores. VA and USDA loans allow 0% down for eligible borrowers.

The mortgage house affordability calculator helps you work out how large a down payment you can realistically build and what property price that unlocks.

Step 3 — Enter your loan term

The two most common choices are 30 years and 15 years. The 30-year mortgage has a lower monthly payment but costs significantly more in total interest. The 15-year mortgage has a higher monthly payment but builds equity faster and costs dramatically less in total interest — typically about half as much.

A 20-year term is a useful middle ground that many buyers overlook: lower total interest than 30 years while keeping payments more manageable than a 15-year.

Step 4 — Enter your interest rate

Use the rate from your lender's pre-approval, the rate from a current quote you are comparing, or a hypothetical rate if you are planning ahead. If you are not sure what rate you qualify for, use current market averages as a starting point — in mid-2026, 30-year fixed rates in the US are broadly in the 6.5%–7.5% range depending on credit profile and lender.

Step 5 — Add taxes, insurance, and HOA if applicable

Property taxes and homeowner's insurance are required costs of ownership and are often included in your monthly escrow payment. Adding these to the calculator gives you your true total monthly housing cost — what lenders call PITI (Principal, Interest, Taxes, Insurance).

Lenders assess your mortgage affordability based on PITI as a percentage of gross monthly income. Most conventional loans require PITI to be no more than 28% of gross monthly income, though this varies by loan type and lender.

Step 6 — Review and compare

Look at the monthly payment and the total interest figure side by side. Now change the term from 30 to 15 years, or change the rate by half a point, or increase the down payment by $20,000. Watch how each change affects both figures. This comparison process is how informed mortgage decisions are made — not by accepting the first number a lender gives you.

How Much Mortgage Can I Afford? — Income-Based Calculations

This is the most important question for any buyer. The mortgage calculator tells you what a specific loan costs. The affordability question asks what loan you should take.

The 28/36 Rule — The Standard Affordability Framework

Most financial advisors and lenders use the 28/36 rule as a starting framework:

Front-end ratio (28% rule): Your total monthly housing costs — principal, interest, taxes, and insurance (PITI) — should not exceed 28% of your gross monthly income.

Back-end ratio (36% rule): Your total monthly debt payments — mortgage plus car loans, student loans, credit card minimums, and all other recurring debt — should not exceed 36% of gross monthly income.

Lenders using conventional loan guidelines typically allow up to 45% back-end DTI in practice, though lower is always better for financial security.

Quick affordability reference table:

Annual income of $50,000 (gross monthly $4,167): Maximum PITI at 28% = $1,167. Estimated maximum loan (at 6.75%, 30 years, after accounting for taxes and insurance) = approximately $145,000–$160,000.

Annual income of $75,000 (gross monthly $6,250): Maximum PITI at 28% = $1,750. Estimated maximum loan = approximately $220,000–$240,000.

Annual income of $100,000 (gross monthly $8,333): Maximum PITI at 28% = $2,333. Estimated maximum loan = approximately $295,000–$320,000.

Annual income of $125,000 (gross monthly $10,417): Maximum PITI at 28% = $2,917. Estimated maximum loan = approximately $370,000–$400,000.

Annual income of $150,000 (gross monthly $12,500): Maximum PITI at 28% = $3,500. Estimated maximum loan = approximately $445,000–$480,000.

Annual income of $200,000 (gross monthly $16,667): Maximum PITI at 28% = $4,667. Estimated maximum loan = approximately $595,000–$640,000.

These are estimates based on current rate ranges with typical tax and insurance estimates included. Your actual maximum will vary based on credit score, existing debts, down payment, and lender-specific criteria.

The annual income calculator converts hourly, weekly, or salary figures to a gross monthly income figure, which is the starting point for all these calculations. The salary to hourly calculator works in reverse for hourly workers modelling their annual borrowing capacity.

How Is Mortgage Calculator Based on Income?

When lenders assess how much they will lend, they run two calculations: the income multiple (typically your gross annual income multiplied by a set factor, usually 4 to 6 times depending on the lender and loan type), and the affordability stress test (checking your payments remain affordable if rates rise by 2 to 3 percentage points).

The mortgage payment calculator is based on income indirectly — not the calculator itself, but the affordability framework that determines the appropriate loan size to enter into it. The right process is: calculate your maximum affordable payment based on income first, then use the mortgage calculator to find the loan size and rate that produces that payment.

30-Year vs 15-Year Mortgage — Which Is Right for You?

This is the most consequential mortgage decision after choosing your rate. The numbers are stark.

Side-by-side comparison — $300,000 loan at 6.75%:

30-year term: Monthly payment $1,946.34. Total paid $700,682. Total interest $400,682.

15-year term: Monthly payment $2,657.56. Total paid $478,361. Total interest $178,361.

The 15-year mortgage costs $711.22 more per month — but saves $222,321 in total interest over the life of the loan.

The break-even question: Can you comfortably afford the higher monthly payment? If the $711 difference would strain your budget, the 30-year term is safer — a budget that cannot absorb a financial surprise because every dollar is committed to the mortgage is more fragile than it looks. If the difference is genuinely manageable, the 15-year is mathematically compelling.

A practical middle ground — the 30-year with voluntary overpayments:

Take the 30-year mortgage but pay $500 extra per month voluntarily. You gain the flexibility of the lower required payment (which you can fall back to if you need to) while achieving a payoff timeline much shorter than 30 years and saving significant interest.

On a $300,000 mortgage at 6.75%: paying an extra $500/month reduces the 30-year term to approximately 20 years and saves roughly $153,000 in interest. The difference between this and the 15-year mortgage is approximately $70,000 in additional interest — the "cost" of the flexibility to reduce payments in difficult months.

For managing debt alongside your mortgage, the debt calculator models all your liabilities together so you can see how mortgage and other debt payments interact in your total monthly budget.

Should I Refinance My Mortgage? — How the Calculator Helps

Refinancing replaces your current mortgage with a new loan — typically to get a lower rate, change the term, or access equity. The core question is whether the savings from the lower rate justify the closing costs of refinancing.

How to Calculate the True Saving from Refinancing

The break-even formula:

Break-even months = Total refinancing closing costs ÷ Monthly payment reduction

If closing costs are $4,000 and the new mortgage saves you $267/month, you break even in 15 months. If you plan to stay in the home for more than 15 months, refinancing saves money. If you are likely to move sooner, it does not.

Detailed example — refinancing from 7.25% to 6.25%:

Current loan: $280,000 remaining, 25 years left, at 7.25%. Current monthly payment: $2,015. New loan: $280,000 at 6.25% for 25 years. New monthly payment: $1,860. Monthly saving: $155. Closing costs: $3,800 (typical range: $2,500–$6,000). Break-even: $3,800 ÷ $155 = 24.5 months — just over two years.

Total interest saved over the 25-year term (if you stay): $280,000 × the rate difference compounds to approximately $46,500.

This is why refinancing is rarely worth it if you plan to move within 2–3 years, and almost always worth it if you are staying long-term and rates have dropped meaningfully.

The refinance calculator models this full break-even analysis including closing cost scenarios, so you can test multiple refinance options before committing.

Should I Refinance to a 15-Year Mortgage?

Refinancing from a 30-year to a 15-year mortgage at a lower rate simultaneously reduces your rate AND your term — but significantly increases your monthly payment. This is only appropriate if your income can comfortably support the higher payment without financial strain.

The benefit is substantial: a $250,000 refinance from 7% (30-year) to 6% (15-year) reduces total remaining interest from approximately $348,000 to approximately $130,000 — saving $218,000. The monthly payment rises from $1,663 to $2,109 — an increase of $446/month.

Should I Overpay My Mortgage? — The Numbers Explained

Making overpayments above your required monthly payment is one of the most effective things you can do with surplus income — but whether it is the right financial move depends on your rate compared to alternative uses of the money.

How Overpaying Reduces Your Mortgage

Every dollar of overpayment reduces your principal immediately and permanently. The interest saved is the overpayment multiplied by your rate, compounded forward through the remaining loan term.

Overpayment impact table — $300,000 loan at 6.75%, 30-year term:

No overpayment: Payoff in 30 years, total interest $400,682. $100/month extra: Payoff in approximately 26 years 8 months, total interest $346,105. Saving: $54,577 and 3 years 4 months. $200/month extra: Payoff in approximately 24 years 1 month, total interest $302,980. Saving: $97,702 and 5 years 11 months. $500/month extra: Payoff in approximately 20 years, total interest $228,800. Saving: $171,882 and 10 years. $1,000/month extra: Payoff in approximately 15 years 6 months, total interest $168,400. Saving: $232,282 and 14 years 6 months.

The rule of thumb: Every extra $100/month saves roughly 3–5 years of mortgage payments and tens of thousands in interest on a typical 30-year loan. The earlier in the loan you overpay, the more you save, because you eliminate interest compounding on a larger base.

Should I Overpay Mortgage or Invest?

This is a genuinely contested personal finance question with a mathematical answer that depends on your rate.

If your mortgage rate is 7%, overpaying provides a guaranteed, risk-free 7% annual return — because you eliminate 7% debt. Compare this to investing in a broad market index fund, which has historically returned approximately 7–10% annually over long periods but with significant volatility and no guarantee.

At a 4% mortgage rate, the mathematical case for investing rather than overpaying is stronger — the equity risk premium (extra return you expect from stocks over risk-free assets) is more likely to exceed 4% over long periods than 7%.

Practical framework:

If your mortgage rate is above 6%: overpaying is almost always the better risk-adjusted decision. If your mortgage rate is 4–6%: it depends on your investment risk tolerance and time horizon. If your mortgage rate is below 4%: investing the surplus is likely the better long-term mathematical choice, though overpaying provides valuable psychological certainty and equity.

Always maintain an emergency fund of 3–6 months of expenses before overpaying — an overpaid mortgage is illiquid. You cannot get the money back without refinancing.

The compound interest calculator lets you model what the same monthly extra payment grows to if invested instead, so you can compare both outcomes with your specific numbers.

Should I Pay Off My Mortgage Early? — The Complete Analysis

Paying off a mortgage early — eliminating the full remaining balance before the scheduled term ends — is a major financial milestone. Whether it is the right move requires considering several factors simultaneously.

The Financial Case For Early Payoff

You eliminate a guaranteed cost equal to your interest rate. At 6.75%, paying off your mortgage is a 6.75% guaranteed return — superior to any savings account and competitive with long-term bond returns. You free up your entire monthly mortgage payment — often $1,500 to $3,000 per month — which can then be redirected to retirement savings, investment, or other goals. You eliminate the largest single financial obligation most households carry, which has substantial psychological and practical value — particularly in retirement, where a paid-off home reduces the income needed to maintain lifestyle.

The Financial Case Against Early Payoff

If your rate is low (below 5%) and you are not maximising tax-advantaged retirement contributions, those contributions may produce better long-term outcomes than mortgage prepayment. Mortgage interest may be tax-deductible if you itemise deductions, reducing the effective cost of the debt. Liquid savings are more flexible than home equity — you cannot spend home equity in an emergency without refinancing.

The Break-Even in Retirement

For buyers approaching retirement with a large remaining mortgage balance, the question is whether to use savings to pay off the mortgage or maintain liquid assets and continue monthly payments. In most scenarios, if the mortgage rate exceeds safe withdrawal rate assumptions for your retirement portfolio (typically 3.5–4%), paying off the mortgage makes the retirement finances more robust.

The pension calculator and 401(k) calculator help model this trade-off — projecting retirement portfolio values with and without the additional contributions that would otherwise go to mortgage prepayment.

Mortgage Payment Tables — Every Major Loan Amount and Rate

The table below shows monthly principal and interest payments for common loan amounts across typical interest rates. These assume a standard 30-year fixed mortgage.

Monthly Payment by Loan Amount and Interest Rate (30-Year Fixed, Principal and Interest Only):

$150,000 loan: at 5.5% = $851.68 / at 6.0% = $899.33 / at 6.5% = $948.10 / at 7.0% = $998.00 / at 7.5% = $1,048.82

$200,000 loan: at 5.5% = $1,135.58 / at 6.0% = $1,199.10 / at 6.5% = $1,264.14 / at 7.0% = $1,330.60 / at 7.5% = $1,398.43

$250,000 loan: at 5.5% = $1,419.47 / at 6.0% = $1,498.88 / at 6.5% = $1,580.17 / at 7.0% = $1,663.26 / at 7.5% = $1,748.04

$300,000 loan: at 5.5% = $1,703.37 / at 6.0% = $1,798.65 / at 6.5% = $1,896.20 / at 7.0% = $1,995.91 / at 7.5% = $2,097.64

$350,000 loan: at 5.5% = $1,987.26 / at 6.0% = $2,098.43 / at 6.5% = $2,212.24 / at 7.0% = $2,328.57 / at 7.5% = $2,447.25

$400,000 loan: at 5.5% = $2,271.16 / at 6.0% = $2,398.20 / at 6.5% = $2,528.27 / at 7.0% = $2,661.21 / at 7.5% = $2,796.86

$500,000 loan: at 5.5% = $2,838.95 / at 6.0% = $2,997.75 / at 6.5% = $3,160.34 / at 7.0% = $3,326.51 / at 7.5% = $3,496.07

$600,000 loan: at 5.5% = $3,406.74 / at 6.0% = $3,597.30 / at 6.5% = $3,792.41 / at 7.0% = $3,991.81 / at 7.5% = $4,195.29

Monthly Payment by Loan Amount — 15-Year Fixed Comparison (at 6.25%):

$200,000: $1,714.59/month, total interest $108,626 $300,000: $2,571.88/month, total interest $162,939 $400,000: $3,429.17/month, total interest $217,251 $500,000: $4,286.47/month, total interest $271,564

How to Reduce Your Mortgage Payment — Every Option Explained

If the monthly payment from the calculator is higher than your target, here are all the levers available and their realistic impact.

Increase the down payment. Every additional dollar of down payment reduces the loan amount directly. Going from 10% to 20% down on a $400,000 home reduces the loan from $360,000 to $320,000 — saving $258/month at 6.75% on a 30-year. It also eliminates PMI, which adds another $100–$200/month in savings.

Extend the loan term. Going from 15 years to 30 years on a $300,000 mortgage at 6.5% drops the payment from $2,613 to $1,896 — a saving of $717/month. The cost is $151,000 in additional interest over the full term.

Get a lower rate. Every 0.5% reduction in rate on a $300,000 30-year mortgage saves approximately $88/month and $31,680 over the term. A 1% reduction saves $175/month and $63,000 total. This is why shopping multiple lenders — or working with a mortgage broker who accesses multiple lenders — is worth doing before committing.

Buy mortgage points. Each discount point costs 1% of the loan amount upfront and typically reduces the rate by 0.25%. On a $300,000 loan, one point costs $3,000 and saves approximately $52/month. The break-even is $3,000 ÷ $52 = 57 months — just under 5 years. If you stay longer than 5 years, points make financial sense.

Challenge your property tax assessment. If your monthly payment includes property tax escrow, a successful tax appeal reduces your total monthly payment. Roughly 30–40% of property tax appeals in the US succeed, according to National Taxpayers Union estimates.

Shop homeowner's insurance annually. Insurance is part of your PITI payment and is genuinely negotiable — switching insurers or shopping the market at renewal can save $200–$800/year on premiums, reducing your monthly payment by $17–$67.

Private Mortgage Insurance (PMI) — What It Is and How to Eliminate It

If your down payment is less than 20% on a conventional loan, lenders require Private Mortgage Insurance. PMI protects the lender (not you) against default and typically costs 0.5% to 1.5% of the loan amount annually.

PMI cost example:

$300,000 loan with 10% down. PMI at 0.8% annually = $2,400/year = $200/month.

This $200/month adds to your required monthly payment and continues until your loan balance falls to 80% of the original home value (the Homeowners Protection Act requires automatic cancellation at 78%). At 6.75% on a 30-year $300,000 loan, it takes approximately 9 years of payments to naturally reach 80% LTV — meaning 9 years of PMI payments totalling approximately $21,600.

How to eliminate PMI faster:

Make overpayments to reach 80% LTV sooner. At $300/month extra on the $300,000 loan, you reach 80% LTV in approximately 5 years instead of 9 — saving $9,600 in PMI payments, plus interest savings on the reduced balance.

Request a new appraisal if your home has appreciated significantly. If values have risen, the 80% LTV threshold may already be met even without extra payments.

Consider a piggyback loan (80-10-10 structure): a primary mortgage for 80%, a second mortgage for 10%, and 10% cash down — eliminating PMI entirely while keeping the primary loan at 80% LTV.

Mortgage Calculator for Specific Scenarios

First-Time Home Buyer Mortgage Calculation

First-time buyers face a specific set of variables: typically smaller down payments (3–10%), potentially higher rates due to LTV, and eligibility for specific loan programs.

FHA loan scenario — $250,000 home, 3.5% down:

Down payment: $8,750. Loan amount: $241,250. FHA rate (typically 0.25–0.5% below conventional): 6.5%. Term: 30 years. Monthly P&I: $1,524.77.

But FHA loans require mortgage insurance premium (MIP) — 0.55% annually for most loans. Monthly MIP: $241,250 × 0.0055 ÷ 12 = $110.57.

Total monthly payment (P&I + MIP, before taxes and insurance): $1,635.34.

The EMI calculator handles the full payment breakdown for any loan structure, and the home loan EMI calculator is specifically designed for comparing home loan repayment schedules across different terms and rates.

Refinance Scenario — How Much Will I Save?

Current mortgage: $220,000 remaining, 22 years left, at 7.5%. Current payment: $1,717. Refinance option: $220,000 at 6.5% for 22 years. New payment: $1,574. Monthly saving: $143. Closing costs: $3,500. Break-even: 24.5 months.

If you plan to stay in the home for at least 3 years, this refinance makes clear financial sense. Over the remaining 22 years, total interest saving is approximately $37,700.

Investment Property / Buy-to-Let Calculation

For investment properties, the key calculation is not just the mortgage payment but the net rental yield after the mortgage.

$350,000 investment property. 25% down ($87,500). Loan: $262,500 at 7.25% (investment property rates typically 0.5–0.75% above primary residence). 30-year term. Monthly P&I: $1,792.

Rental income (gross): $2,400/month. Property management (10%): $240. Insurance: $120. Property tax: $280. Vacancy allowance (8%): $192. Total monthly costs excluding mortgage: $832.

Net operating income: $2,400 − $832 = $1,568. Mortgage payment: $1,792. Monthly cash flow: $1,568 − $1,792 = −$224.

This property is cash-flow negative at current rates — a common situation in 2025–2026. The investment case rests on capital appreciation, which the calculator cannot predict. Investors should model this carefully before committing.

Frequently Asked Questions About Mortgage Calculators

How does a mortgage calculator work?

A mortgage calculator applies the loan amortisation formula — M = P × [r(1+r)ⁿ] ÷ [(1+r)ⁿ−1] — to your loan amount, interest rate, and term to calculate your monthly principal and interest payment. It then multiplies by the number of payments to show total cost, subtracts the loan amount to show total interest, and models how your balance falls over time in an amortisation schedule.

How much mortgage payment calculator — what payment can I afford?

Using the 28% front-end rule, your maximum monthly PITI payment equals 28% of your gross monthly income. At $80,000 annual income ($6,667/month), the maximum PITI is $1,867. After estimating taxes and insurance (typically $400–$600/month on a mid-range home), the maximum principal and interest payment is approximately $1,267–$1,467 — corresponding to a loan of roughly $185,000–$215,000 at current rates.

How to calculate mortgage payment manually?

Use the formula M = P × [r(1 + r)ⁿ] ÷ [(1 + r)ⁿ − 1]. For a $250,000 loan at 6.5% over 30 years: r = 0.065 ÷ 12 = 0.005417. n = 360. (1+r)ⁿ = (1.005417)³⁶⁰ = 6.848. Numerator = 0.005417 × 6.848 = 0.03710. Denominator = 6.848 − 1 = 5.848. Result = 0.03710 ÷ 5.848 = 0.006345. Monthly payment = 0.006345 × 250,000 = $1,586.25.

What is a good mortgage rate right now?

In mid-2026, a good 30-year fixed rate for a borrower with strong credit (740+ FICO), 20% down payment, and full documentation is broadly in the 6.25%–6.75% range for a conventional loan. Rates vary by lender, credit profile, loan type, and property type. Always get quotes from at least three lenders before committing.

Should I refinance my mortgage now?

Refinancing makes financial sense when: the rate reduction saves enough monthly to recoup closing costs within your planned ownership period (typically 2–3 years); you want to change your term (e.g., from 30 years to 15 years); or you want to access equity through a cash-out refinance. Use the refinance calculator to model your specific break-even point.

How do I know how much mortgage I can afford?

Start with the 28/36 rule: your total housing payment (PITI) should not exceed 28% of gross monthly income, and total debt payments should not exceed 36%. Use the mortgage house affordability calculator to enter your income, existing debts, and available down payment for a personalised maximum purchase price.

What is an amortisation schedule?

An amortisation schedule is a complete table showing every mortgage payment over the full loan term, broken down into the amount going to interest versus principal for each month. In the early years, most of each payment is interest. Over time, as the balance falls, more of each payment reduces the principal. The schedule shows your exact remaining balance at any point in the loan.

How does the mortgage interest calculation work for tax purposes?

In the US, homeowners who itemise deductions can deduct mortgage interest paid on loans up to $750,000 (for mortgages originated after December 15, 2017). The deduction applies to interest on primary residences and, in some circumstances, second homes. Since the 2017 tax reform significantly raised the standard deduction, fewer homeowners find it beneficial to itemise — consult a tax professional to determine whether mortgage interest deduction benefits your specific situation.

What is the difference between interest rate and APR on a mortgage?

The interest rate is the cost of borrowing the principal, expressed as a percentage. The APR (Annual Percentage Rate) includes the interest rate plus other loan costs — origination fees, mortgage points, PMI, and certain closing costs — expressed as a single annual rate. The APR is always equal to or higher than the interest rate and is the better number for comparing the true cost of different mortgage offers.

How does a 30-year mortgage compare to a 15-year mortgage?

On a $300,000 loan at comparable rates (6.75% for 30-year, 6.25% for 15-year): the 30-year has a monthly payment of $1,946 and total interest of $400,000. The 15-year has a monthly payment of $2,573 and total interest of $163,000. The 15-year saves $237,000 in interest but costs $627 more per month. The right choice depends on whether you can comfortably sustain the higher payment.

What credit score do I need for the best mortgage rate?

For the best conventional mortgage rates, lenders typically want a FICO score of 760 or above. Scores between 720–759 receive rates slightly above the best tier. Scores between 680–719 see a more meaningful rate premium. FHA loans are available with scores as low as 580 with 3.5% down (or 500 with 10% down), though these come with higher rates and mandatory MIP. Each 20-point drop in credit score typically adds 0.1–0.2% to your mortgage rate.

Can I use the mortgage calculator for an auto loan or personal loan?

The same amortisation formula applies to any instalment loan. For auto loans specifically, the auto loan calculator and car loan EMI calculator are designed for vehicle financing with appropriate term ranges and rate contexts. For general loans, the payment calculator handles any loan amount, rate, and term combination.

The Complete Mortgage Planning Toolkit

A mortgage decision is part of a broader financial picture. These tools help you see the full picture before committing:

The mortgage house affordability calculator determines your maximum purchase price based on income, debts, and down payment — the right starting point before using the mortgage payment calculator.

The refinance calculator models whether switching to a new rate saves money after accounting for closing costs, and calculates your exact break-even period.

The home loan EMI calculator provides a detailed month-by-month repayment breakdown in EMI format, useful for comparing loan structures across different terms.

The debt calculator models all your outstanding debts — mortgage, car, student loans, credit cards — in one place, showing how your total debt load changes over time and what payoff sequence minimises total interest.

The compound interest calculator helps you model overpayment strategies, showing exactly how much interest each extra payment eliminates over the remaining loan term.

The 401(k) calculator projects retirement savings growth, so you can compare directing surplus income to mortgage overpayments versus retirement contributions — and make an informed allocation decision.

The savings goal calculator helps you build a down payment faster by calculating exactly how much to set aside monthly to reach a target deposit in your desired timeframe.

The inflation calculator shows the real purchasing power of your monthly mortgage payment over time — in 30 years, a $2,000 fixed payment will represent significantly less real value than it does today, which is part of the long-term case for fixed-rate mortgages.

The annual income calculator converts your compensation to the gross monthly income figure lenders use for affordability assessments — the starting point for all mortgage affordability calculations.

The payment calculator handles any loan type with any term and rate, useful for modelling personal loans, home equity loans, or any other borrowing alongside your primary mortgage.

Make Your Mortgage Decision With Confidence

The mortgage calculator above runs the exact same calculation your lender uses to determine your monthly payment. The difference is that you can run it 20 times in two minutes — comparing rates, terms, down payments, and scenarios — before you ever sit across from a loan officer.

That preparation is the single most valuable thing a homebuyer or refinancer can do. Borrowers who arrive at the lender conversation already knowing what different rates and terms cost them negotiate better, spot unattractive offers faster, and make decisions grounded in real numbers rather than sales pressure.

Run your numbers. Know your payment. Buy with confidence.