🏠 Mortgage Calculator

How to Use This Mortgage Calculator

Enter your loan amount (the amount you are borrowing, not the property price), your annual interest rate as quoted by your lender, and your loan term in years. Hit Calculate and you will instantly see your monthly repayment, total amount paid over the life of the loan, and total interest charged.

To see how extra payments affect your mortgage, enter any additional monthly amount in the Extra Monthly Payment field. The calculator will show you exactly how many months you save and how much interest you avoid — often tens of thousands of dollars on a typical mortgage.

Click "Show Full Amortization Schedule" to see a year-by-year breakdown of principal paid, interest paid, and remaining balance for every year of your loan.

Understanding Your Mortgage Payment

Your monthly mortgage payment has two components: principal and interest. In the early years of a mortgage, the majority of each payment goes toward interest — not reducing your balance. This is called front-loaded amortization, and it is why the first few years of a mortgage feel like you are barely making a dent in what you owe.

As time passes, the ratio shifts. By the final years of a 30-year mortgage, most of each payment is paying down principal. The amortization schedule below your results shows this shift year by year.

The Power of Extra Mortgage Payments

One of the highest-return financial moves available to homeowners is making extra payments on their mortgage. Because mortgage interest is calculated on your outstanding balance, every dollar of extra principal you pay reduces the interest charged on every future payment. The savings compound over time.

• On a $300,000 loan at 6.5% over 30 years, an extra $200/month saves approximately $78,000 in interest
• The same extra payment cuts about 7 years off the loan term
• Even a single extra payment per year (a 13th payment) can save over $30,000 and cut 3-4 years off a typical mortgage

Use the Extra Monthly Payment field above to model your specific scenario before committing to a strategy.

Fixed vs Variable Rate Mortgages

This calculator assumes a fixed interest rate — one that stays the same for the life of the loan. Fixed-rate mortgages offer payment certainty and are ideal when rates are relatively low or when you plan to stay in the property long-term.

Variable or adjustable-rate mortgages (ARMs) start with a lower rate that can change periodically based on market indexes. They can save money if rates fall or stay flat, but carry risk if rates rise significantly. For variable rate planning, model both your current rate and a potential higher rate to understand your worst-case payment.

What This Calculator Does Not Include

This calculator shows your principal and interest payment only. Your total monthly housing cost will also include: property taxes (typically 1-2% of home value annually), homeowners insurance (typically $100-200/month), and if your down payment is below 20%, private mortgage insurance (PMI) of approximately 0.5-1.5% of the loan annually. These additional costs can add $300-700/month to your effective housing payment.