Calculator
What will your mortgage payment be?
Four inputs, the price, your down payment, the rate, and the term, give you the monthly payment, the total interest over the life of the loan, and the payoff date. Add an extra monthly payment to see how much sooner the loan clears, computed from your own numbers, not a market average. Works in any currency and runs entirely in your browser, so nothing you enter is sent anywhere.
20% down. Loan amount $320,000.
Your monthly payment
$2,023
Principal and interest on a $320,000 loan.
What to do with this number
- Decide your comfortable payment before you shop, and let it cap the price you offer, not the other way around.
- Re-run the numbers with a higher rate before you commit; if the payment only works at today's rate, it is too tight.
- Get a pre-approval, called an agreement in principle in some markets, before you make offers; sellers take a written lender answer seriously.
This page answers one question: what a given loan costs per month. If the real question is what you can actually borrow, run the affordability calculator; it works from your income and down payment rather than a price you chose. For the steps around the loan, pre-approval, inspections, and closing costs, read your country's buying guide, then return here when rates move.
How the monthly payment is calculated
The payment is the fixed monthly amount that pays the loan down to zero over the term at your interest rate, what US lenders call an amortizing loan. Early payments are mostly interest and later ones mostly principal, which is why the total interest on a long loan can rival the amount you borrowed. Lowering the rate, shortening the term, or borrowing less all cut the total interest, and the result panel shows each effect the moment you change a field.
The defaults follow the US convention of one rate fixed for the whole term. Many markets fix the rate for a few years and then move to a variable one, so enter the rate and term you are actually offered, and re-run the numbers for each period if your rate will change.
What an extra monthly payment changes
Anything you pay on top of the scheduled amount goes straight to principal, so the balance falls faster, every later month is charged less interest, and the loan ends early. How much that is worth depends entirely on your loan, your rate, and your term, so this page does not quote a typical saving. Enter your own figure in the extra payment field and the result shows the payoff date and the interest saved for your numbers alone. Before you commit to paying extra, check whether your lender charges early-repayment fees; some markets limit or price them.
Common questions
What is mortgage amortization?
Paying a loan down to zero with a fixed monthly payment over the term. Each payment covers that month’s interest first and the remainder reduces the principal, so early payments are mostly interest and later ones mostly principal. That order is why the total interest on a long loan can rival the amount borrowed, and why extra principal paid early saves the most.
How does an extra monthly payment reduce the interest?
Anything above the scheduled payment goes straight to principal. A smaller balance is charged less interest the next month, that advantage repeats every month after, and the loan ends sooner. The size of the saving depends entirely on your own loan, rate, and term, so enter your figure in the calculator instead of trusting a typical number. Check first whether your lender charges early-repayment fees; some markets limit or price extra payments.
Why will my real monthly payment be higher than the number here?
This calculator shows principal and interest only. Property tax, home insurance, and any service or community charges come on top, and in the United States lenders often collect tax and insurance inside the monthly payment through an escrow account. Mortgage insurance can also apply when the down payment is small. Add your local figures to this result for the payment you will actually make.
Is a shorter loan term worth the higher payment?
A shorter term raises the monthly payment and cuts the total interest, because the balance is cleared sooner and is charged interest for fewer months. Whether the trade is worth it depends on the cushion left in your monthly budget. Compare terms here by changing the term field and watching the total interest line, or keep the longer term and add an extra monthly payment, which shortens the loan without the contractual obligation.
Does the total of all payments include my down payment?
No. The loan amount is the price minus your down payment, and the totals show what you pay the lender: the loan plus the interest on it. The down payment is money you hand over at purchase, not part of the loan, so add it back if you want the full cost of the home.
Can I use this calculator outside the United States?
Yes. The amortization math is the same in any currency, and the calculator follows your country for the currency symbol and number format. A rate fixed for the whole term is a US convention, though: many markets fix the rate for a few years and then move to a variable one, so re-run the numbers with the rate each period would charge, and treat the result as a planning estimate, not a loan offer.