How this calculator works
Enter the home price, your down payment, the interest rate and the loan term. The calculator returns your estimated monthly payment, splits it into principal-and-interest and taxes-and-insurance, and shows how your balance falls each year.
The principal-and-interest portion uses the standard amortisation formula: M = P × r ÷ (1 − (1 + r)−n), where P is the loan amount, r the monthly rate and n the number of monthly payments. Taxes and insurance are spread evenly over twelve months, the way many lenders collect them through an escrow or impound account.
How to use the result
Compare the total monthly figure to your take-home pay. Many households aim to keep total housing costs near or below 28–32% of gross income. Open the year-by-year schedule to see how much of each year's payments goes to interest — and test how a slightly lower rate or larger down payment changes the lifetime cost.
Frequently asked questions
Does this include mortgage insurance?
No. If your down payment is small, add your lender's mortgage-insurance quote to the monthly total.
Why is so much of my early payment interest?
Interest is charged on the outstanding balance, which is largest at the start. As the balance falls, more of each payment goes to principal.
Should I choose a 15- or 30-year term?
A shorter term has higher payments but far less total interest. Try both terms here and compare the 'Total interest' line.
Results are estimates for educational purposes and depend on the assumptions you enter. They are not an offer of credit or financial advice. Last reviewed October 2026.