🏠Mortgage Calculator
Calculate monthly mortgage payments, total interest, and see how different loan terms affect your home purchase
Loan Details
Purchase price of the home
Percentage of home price
Annual interest rate
Additional Costs
Annual property tax amount
Annual homeowner's insurance premium
Private Mortgage Insurance (auto-calculated if down payment < 20%)
Homeowner's Association fees
Extra Payments
Additional principal payment each month
Mortgage Calculator
Calculate your monthly mortgage repayments and understand the total cost of your home loan. Enter the property price, your deposit amount, loan term, and interest rate to see a detailed breakdown of principal, interest, and additional costs. This calculator supports multiple currencies and provides amortization estimates to help you plan your home purchase.
Understanding Your Mortgage
🏠 Key Components
- Principal: The amount borrowed
- Interest: Cost of borrowing money
- Property Tax: Annual tax on your property
- Insurance: Protects your home
- PMI: Required if down payment < 20%
- HOA: Community association fees
💡 Smart Tips
- • Aim for 20% down to avoid PMI
- • Extra payments reduce total interest
- • Shorter terms = lower total interest
- • Shop around for best interest rates
- • Factor in closing costs (2-5%)
- • Keep monthly payment under 28% of income
Financial Guidelines & Regulations
Keep Housing Costs Below 30% of Income
Financial experts globally recommend that total housing costs—including mortgage payments, property taxes, and insurance—should not exceed 28–35% of your gross monthly income. This rule helps ensure you have sufficient income remaining for savings, investments, and other living expenses while maintaining a comfortable lifestyle.
OECD – Housing Affordability Guidelines
The Impact of Interest Rates on Total Cost
A seemingly small difference in interest rates has a major impact over the life of a mortgage. On a loan equivalent to $400,000, a 0.5% rate reduction saves approximately $40,000–$50,000 in total interest over 30 years. Always compare offers from multiple lenders and consider both the interest rate and total fees charged.
World Bank – Financial Literacy for Home Buyers
Build Equity Faster with Extra Payments
Making additional payments toward your principal—even modest amounts—can dramatically reduce your total interest paid and shorten your loan term. An extra payment equivalent to one additional monthly instalment per year can reduce a 30-year mortgage by 4–5 years. Check with your lender about any early repayment penalties before making extra payments.
OECD – Household Financial Resilience
Frequently Asked Questions
How much deposit do I need to buy a home?
Deposit requirements vary by country and lender, but most institutions recommend 10–20% of the property value. A larger deposit typically secures better interest rates, reduces your monthly payments, and may eliminate the need for mortgage insurance. Some government schemes exist to help first-time buyers with lower deposits.
What is the difference between fixed and variable rate mortgages?
A fixed-rate mortgage locks your interest rate for a set period (typically 2–10 years), providing payment certainty. A variable rate fluctuates with market conditions and central bank rates—it can be cheaper initially but carries the risk of rate increases. Your choice depends on your risk tolerance and how long you plan to stay in the property.
How does the loan term affect my total mortgage cost?
A shorter loan term (e.g., 15–20 years) means higher monthly payments but significantly less total interest paid. A longer term (25–30 years) offers lower monthly payments but costs substantially more in total interest. The difference can amount to 40–60% more interest paid over the loan's lifetime with a longer term.
Financial Accuracy
Disclaimer: This calculator provides estimates for informational purposes only. This is not financial, tax, or legal advice. Please consult a qualified financial advisor for advice specific to your situation.