Mortgage Calculator
Estimate a monthly mortgage payment from price, deposit, rate and term, with property tax and insurance folded into the total.
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Monthly payment
$2,485.48
Principal, interest, tax and insurance combined.
An estimate for planning. Lender fees and mortgage insurance are not included.
Yearly breakdown
| Year | Interest | Principal | Balance |
|---|---|---|---|
| 1 | $20,888 | $3,937 | $332,063 |
| 2 | $20,635 | $4,190 | $327,872 |
| 3 | $20,366 | $4,460 | $323,412 |
| 4 | $20,079 | $4,747 | $318,665 |
| 5 | $19,773 | $5,052 | $313,613 |
| 6 | $19,449 | $5,377 | $308,236 |
What makes up a mortgage payment
A monthly payment usually bundles four things, often abbreviated PITI:
- Principal — repayment of the amount borrowed.
- Interest — the lender's charge on the outstanding balance.
- Taxes — property tax, typically collected monthly into an escrow account.
- Insurance — buildings insurance, and mortgage insurance where the deposit is small.
Principal and interest are fixed on a fixed-rate mortgage. Tax and insurance aren't — they get reassessed, which is why a payment can rise even on a fixed deal.
The deposit changes more than the loan size
A larger deposit reduces the amount borrowed, and it usually unlocks a better interest rate as well, because the lender's risk falls with the loan-to-value ratio. At 20% down, most conventional loans drop private mortgage insurance entirely — often worth 0.5–1.5% of the loan amount every year.
Below 20%, expect the higher payment to persist until enough equity accumulates, though the rules for removing it vary by loan type.
What this estimate leaves out
Deliberately, because they vary too much to guess:
- Lender origination and underwriting fees
- Private mortgage insurance
- HOA or service charges
- Closing costs, typically 2–5% of the purchase price
- Maintenance, which owners consistently underestimate
Treat the figure as a planning number for what you can look at, not an offer.
Affordability rules of thumb
Lenders commonly cap total housing costs around 28% of gross income, and all debt payments around 36%. These are ceilings, not targets. Borrowing to the limit leaves nothing for the boiler failing, and a mortgage lasts a lot longer than most jobs do.
How to use the Mortgage Calculator
Three steps, no sign-up.
Enter the property price and deposit
The deposit can be entered as a percentage or a cash amount.
Add the rate and term
25 and 30 years are the usual terms; shorter costs less overall.
Include tax and insurance
These often add 15–25% on top of principal and interest, so leaving them out understates the real payment.
Worked examples
A $420,000 home with 20% down at 6.25% over 30 years
- Inputs
- $420,000 · $84,000 down · 6.25% · 30 years
- Result
- $2,068 principal and interest per month