How to use the Mortgage Calculator
- Enter the home price and your down payment as a percentage or amount.
- Enter the interest rate and choose the loan term.
- Add yearly property tax, home insurance and PMI (charged only if your down payment is under 20%), plus any HOA fee.
- Read your total monthly payment and the yearly amortization table. In the UK, set tax, insurance and PMI to 0 to see the plain repayment.
Formula used
L = loan amount (price − down payment), r = annual rate ÷ 12, n = years × 12.
Total monthly (PITI) = M + property tax/12 + insurance/12 + PMI/12 + HOAWorked examples
| Loan | Rate | Term | Monthly P&I | Total interest |
|---|---|---|---|---|
| $320,000 | 6.5% | 30 years | $2,023 | $408,142 |
| $400,000 | 7% | 30 years | $2,661 | $558,036 |
| £240,000 | 4.5% | 25 years | £1,334 | £160,199 |
| ₹50,00,000 | 8.5% | 20 years | ₹43,391 | ₹54,13,879 |
How to lower your mortgage cost
- Put down 20% or more to avoid PMI on US conventional loans.
- Choose a shorter term. A 15-year loan has higher payments but usually a lower rate and far less interest.
- Overpay when you can. Extra payments go straight to principal.
- Compare APR, not just the rate, because fees change the real cost.
Check what you can afford after tax with the US Income Tax Calculator 2026 or UK Take-Home Pay Calculator 2026/27. In England, add stamp duty to your upfront costs.
Frequently asked questions
How much house can I afford?
A common rule is to keep housing costs under 28% of gross monthly income and all debts under 36%. Lenders in the UK often lend about 4 to 4.5 times income.
What is PMI?
Private mortgage insurance protects the lender on US conventional loans when you put down less than 20%. It usually costs 0.3% to 1.5% of the loan a year and can be removed once you reach 20% equity.
Is a 15-year or 30-year mortgage better?
A 15-year mortgage saves a lot of interest but has higher payments. A 30-year mortgage gives lower payments and more flexibility.
Does this work for UK and Indian home loans?
Yes. Set property tax, insurance and PMI to 0 to see the plain monthly repayment or EMI.
How does an extra payment help?
Every extra payment reduces the balance that interest is charged on, which shortens the loan and cuts total interest.
Our team builds and tests every tool by hand, checks each formula against official sources (IRS, HMRC, the Income Tax Department of India, CBSE, NHS, WHO) and reviews pages whenever rules change. Last reviewed on . Spotted a mistake? Tell us.