FINBIZTOOLS
Mortgage Payment Calculator
Estimate what a mortgage could cost each month. Enter the property price, down payment, interest rate and term to see the principal-and-interest payment, then optionally add property tax, insurance and other recurring costs for an estimated total housing payment.
Private by design · Inputs and downloads stay in your browser
Changes the currency symbol and number format only. Amounts are not converted.
Principal & interest is what the lender is paid. Tax, insurance and other recurring costs are optional and entirely user-entered — this calculator does not assume any country's tax or insurance rules.
How to use the Mortgage Payment Calculator
- Enter the property price and your down payment.
- Enter the annual interest rate and the loan term in whole years.
- Select Calculate to see the loan amount and the principal-and-interest payment.
- Optionally open Advanced assumptions to add property tax, insurance and other recurring costs for a total monthly housing payment.
Use the currency selector above the inputs to change the symbol. It changes the display only and does not convert amounts.
Principal & interest vs. total housing payment
Principal and interest is the amount a lender is paid each period on the loan itself. Many owners also pay property tax, insurance and sometimes an association fee alongside it, and this calculator keeps those two figures clearly separate rather than blending them into one number.
None of the optional costs are assumed or estimated for you — property tax and insurance rules vary enormously between countries and regions, so this calculator only includes what you enter.
How the calculation works
Mortgage payment formula
M = P × [r(1+r)^n] ÷ [(1+r)^n − 1]
At 0% interest: M = P ÷ n
- P is the principal (property price minus down payment).
- r is the periodic interest rate, the annual rate ÷ 1200 for monthly payments.
- n is the total number of monthly payments.
Total interest and total payments come from running this payment month by month to a zero balance, not from a separate formula, so they always reconcile exactly with the amortization schedule below.
Mortgage payment calculation example
A 400,000 property with an 80,000 down payment, a 6% annual interest rate and a 30-year term:
| Property price | 400,000 |
|---|---|
| Down payment | 80,000 |
| Annual interest rate | 6% |
| Loan term | 30 years |
| Loan amount | 320,000 |
|---|---|
| Principal & interest payment | 1,918.56 |
| Total interest | 370,682.20 |
| Total mortgage payments (principal + interest) | 690,682.20 |
Amounts are shown without a currency symbol because the arithmetic is identical in any currency. The currency selector only changes the symbol and number format; it never converts amounts.
Assumptions and limitations
Assumptions
- A fixed nominal annual interest rate for the whole term and a monthly reducing balance.
- Property tax, insurance and other recurring costs are 0 unless you enter them — no country's rules are assumed.
- Down payment cannot exceed the property price.
Limitations and why results can differ
- This is not a lender's offer, pre-approval or quote. Actual terms, fees and closing costs vary by lender and jurisdiction.
- Property tax, insurance, mortgage insurance and HOA/association fees differ enormously between countries and even between regions of the same country — enter your own figures rather than relying on any default.
- A fixed rate is assumed; an adjustable or variable rate will not follow this projection once it resets.
Frequently asked questions
How is a mortgage payment calculated?
From the loan amount (price minus down payment), the interest rate and the term, using the standard fixed-rate amortization formula. Each payment covers that period's interest first, and the rest reduces the principal.
Does the payment include taxes and insurance?
Only if you enter them. Principal and interest is shown separately from the estimated total housing payment, which adds any tax, insurance or other recurring cost you provide.
What happens with a larger down payment?
A larger down payment reduces the loan amount, which lowers both the monthly payment and the total interest paid over the loan.
Can the down payment be larger than the property price?
No. The calculator requires the down payment to be less than or equal to the property price.
Methodology
Inputs are validated: property price and down payment from 0 to 1,000,000,000 (down payment cannot exceed the price), annual interest rate from 0% to 50%, term as a whole number of years from 1 to 50, and optional annual tax/insurance and monthly HOA/other costs, each from 0 upward, all defaulting to 0.
The loan amount is price minus down payment. The principal-and-interest payment, total interest and total payments are all produced by the shared mortgage engine's month-by-month amortization loop (the same engine used by the Amortization, Extra Payment and Refinance calculators), not a separate formula, so they always reconcile with the year-wise table shown. The calculation runs in your browser and inputs are not sent to a server.
Last reviewed:
Disclaimer
Results are estimates based on the assumptions you enter. Actual repayments depend on your lender’s terms, fees and rate structure. This page is for information only and is not lending or financial advice. Read the full Disclaimer.
Explore this topic
This tool is part of Loans and Mortgages.
A common order: check what you can afford, compare loan offers, then see how extra payments change total interest.