Worldwide Mortgage Calculator
Use our free mortgage calculator to estimate your monthly mortgage payments, including principal, interest, taxes, and insurance. Get a complete amortization schedule and see how much interest you’ll pay over the life of your loan.
Calculate Your Mortgage Payment
Amortization Schedule
What Is a Mortgage Calculator?
A mortgage calculator is an essential financial tool that helps homebuyers and homeowners estimate their monthly mortgage payments before committing to a home loan. Our free mortgage calculator provides accurate estimates by considering your property price, down payment, loan term, interest rate, and additional costs like property taxes and insurance.
Whether you’re a first-time homebuyer exploring your budget or a current homeowner considering refinancing, this home loan calculator gives you the insights you need to make informed financial decisions. By adjusting different variables, you can see how changes in interest rates, down payment amounts, or loan terms affect your monthly payment and total interest paid over the life of the loan.
Our calculator supports multiple currencies and is designed for users worldwide, including the USA, Canada, UK, Australia, UAE, India, and Eurozone countries.
How Are Mortgage Payments Calculated?
Mortgage payments are calculated using a standard formula that takes into account your loan amount, interest rate, and loan term. The calculation ensures that each monthly payment covers the interest accrued during that period while also reducing your principal balance.
Here’s what goes into your monthly mortgage payment:
- Principal: The amount you borrowed to purchase your home
- Interest: The cost of borrowing money, expressed as an annual percentage rate
- Property Taxes: Annual taxes divided into monthly payments (often held in escrow)
- Home Insurance: Protection for your property against damage or loss
- HOA Fees: Homeowners association fees for community maintenance
When you use our mortgage payment calculator, you’ll see both your principal and interest payment (P&I) and your total monthly payment (PITI), which includes taxes and insurance.
Mortgage Formula Explained
The standard mortgage calculation uses the following formula to determine your fixed monthly payment:
M = P × [r(1+r)ⁿ] / [(1+r)ⁿ − 1]
Where:
- M = Monthly mortgage payment
- P = Principal loan amount (property price minus down payment)
- r = Monthly interest rate (annual rate divided by 12)
- n = Total number of payments (loan term in years multiplied by 12)
Example Mortgage Calculation
Let’s calculate the monthly payment for a $300,000 home with a 20% down payment ($60,000), a 30-year loan term, and a 6.5% annual interest rate:
- Loan amount (P): $240,000
- Monthly interest rate (r): 6.5% ÷ 12 = 0.5417% = 0.005417
- Total payments (n): 30 × 12 = 360 months
Monthly Payment = $240,000 × [0.005417(1.005417)³⁶⁰] ÷ [(1.005417)³⁶⁰ − 1] = $1,517.17
Over 30 years, you would pay a total of $546,181.20, including $306,181.20 in interest.
What Is an Amortization Schedule?
An amortization schedule is a complete table of periodic loan payments showing the amount of principal and interest that comprise each payment until the loan is paid off at the end of its term. Each payment is the same amount, but the portion going toward principal increases over time while the interest portion decreases.
Early in your mortgage, most of your monthly payment goes toward interest. As you continue making payments, more of each payment applies to the principal balance. This is because interest is calculated on the remaining balance, which decreases with each payment.
Our calculator generates a complete year-by-year amortization schedule so you can see exactly how your loan balance will decrease over time and how much interest you’ll pay each year.
How to Reduce Mortgage Interest
There are several strategies to reduce the total interest you pay on your mortgage:
- Make a larger down payment: Reducing your loan amount means less interest over time
- Choose a shorter loan term: 15-year mortgages typically have lower rates and significantly less total interest
- Make extra payments: Even small additional payments toward principal can save thousands in interest
- Refinance to a lower rate: When interest rates drop, refinancing can reduce your monthly payment and total interest
- Make biweekly payments: Paying half your monthly payment every two weeks results in 26 half-payments (13 full payments) per year
Use our calculator’s “Extra Monthly Payment” feature to see how additional payments can shorten your loan term and reduce total interest.
Frequently Asked Questions
How accurate is this mortgage calculator?
Our mortgage calculator provides highly accurate estimates based on the standard mortgage formula used by lenders worldwide. However, your actual monthly payment may vary slightly due to factors like PMI (Private Mortgage Insurance), specific lender fees, and exact property tax assessments. Always consult with your lender for the most accurate payment quote.
What is PITI in mortgage calculations?
PITI stands for Principal, Interest, Taxes, and Insurance. It represents your total monthly housing payment. Principal and interest make up your base mortgage payment, while property taxes and homeowners insurance are often escrowed and paid by your lender on your behalf. Some lenders require HOA fees to be included in your PITI calculation as well.
How much should my down payment be?
A typical down payment ranges from 3% to 20% of the home’s purchase price. A 20% down payment allows you to avoid Private Mortgage Insurance (PMI) and typically secures better interest rates. However, many loan programs allow lower down payments: FHA loans require as little as 3.5%, VA loans offer 0% down for eligible veterans, and some conventional loans accept 3% down for qualified buyers.
Should I choose a 15-year or 30-year mortgage?
A 15-year mortgage typically offers lower interest rates and saves significant money on total interest paid, but requires higher monthly payments. A 30-year mortgage provides lower monthly payments and more flexibility in your budget, but results in more interest over the loan’s life. Choose based on your financial situation, income stability, and other financial goals. Use our calculator to compare both options.
How do extra payments affect my mortgage?
Extra payments directly reduce your principal balance, which decreases the amount of interest you’ll pay over time. Even small additional monthly payments can significantly shorten your loan term. For example, adding just $100 per month to a 30-year mortgage can reduce your payoff time by several years and save tens of thousands in interest. Our calculator shows exactly how extra payments affect your payoff timeline.
What credit score do I need for a mortgage?
Minimum credit score requirements vary by loan type: Conventional loans typically require 620 or higher, FHA loans accept scores as low as 580 (or 500 with 10% down), VA loans don’t have a strict minimum but most lenders prefer 620+, and USDA loans generally require 640+. Higher credit scores qualify for better interest rates, which significantly impact your monthly payment and total interest paid.
Can I use this calculator for refinancing?
Yes, this calculator works perfectly for refinancing scenarios. Simply enter your current loan balance as the property price, your desired down payment as $0 (or any cash you’re putting toward the refinance), and the new interest rate and term you’re considering. Compare the results with your current mortgage to see if refinancing makes financial sense.
Does this calculator include PMI?
Private Mortgage Insurance (PMI) is not automatically included in this calculator. PMI is typically required when your down payment is less than 20% of the home’s value. PMI rates vary based on your credit score and loan-to-value ratio, typically ranging from 0.3% to 1.5% of the original loan amount annually. You can estimate PMI by adding it to your monthly insurance payment field.