Calculator

Mortgage calculator

A mortgage is the largest loan most households take. Small rate differences compound into large lifetime differences over 30 years. Test scenarios below.

Updated July 2026
$
$
%
Monthly payment (P&I)
$2,023
Principal and interest only — taxes, insurance, PMI are separate
Loan amount
$320,000
Total interest over term
$408,142
Total paid
$728,142

How it works

Monthly Payment = P × [r(1 + r)^n] / [(1 + r)^n − 1]
  • P is the loan amount (home price minus down payment).
  • r is the monthly interest rate (annual rate ÷ 12).
  • n is the number of monthly payments (years × 12).
  • The formula produces the fixed monthly principal-and-interest payment for an amortising loan.
  • Taxes, insurance, and PMI are added separately as monthly amounts.

Worked examples

  • $400,000 loan at 6.5% for 30 years: ~$2,528/month principal and interest, ~$510,000 total interest over the life of the loan.
  • Same loan at 6.0% saves ~$130/month and ~$47,000 in total interest.
  • Switching to a 15-year term at 6.0% raises payment to ~$3,376 but slashes total interest to ~$207,000.

Frequently asked questions

How much house can I afford?

A common rule is total housing cost (mortgage, taxes, insurance) under 28% of gross income and total debt under 36%. Personal comfort should stay well under those ceilings to leave room for saving and investing.

Should I put 20% down?

20% down avoids private mortgage insurance (PMI) and shrinks total interest. Not required — many loans start at 3–5% down — but 20% is usually the most efficient option.

Fixed or adjustable rate?

Fixed for stability and long stays. Adjustable if you plan to move or refinance within the fixed period, or if rates are unusually high and expected to fall.

Related

Educational information only. Not personalised financial advice. Consult a qualified professional for decisions specific to your situation.