How this mortgage payment calculator works
The calculator estimates the loan amount from property price minus deposit or down payment. It then uses the interest rate, loan term and repayment type to estimate the monthly mortgage payment.
Optional monthly costs can be added for property taxes or rates, home insurance, HOA/body corporate/service charge fees, mortgage insurance or loan fees, and other recurring costs.
Region and currency settings change defaults, labels and currency formatting only. They do not perform exchange-rate conversion or create country-specific results.
Principal and interest vs interest-only payments
Principal and interest payments gradually repay the loan balance over the term. Interest-only payments estimate interest payments only, so the monthly payment can be lower, but the principal is not repaid during the interest-only period shown.
Mortgage payment vs total monthly housing cost
The mortgage payment is only the loan payment. Total monthly housing cost adds the optional taxes, rates, insurance, shared-property fees, mortgage insurance or loan fees, and other monthly costs you enter.
Why deposit or down payment affects the loan amount
A larger deposit or down payment reduces the loan amount. A smaller loan usually means a lower monthly payment, lower total interest and a lower loan-to-value ratio.
What loan-to-value means
Loan-to-value compares the loan amount with the property price. For example, a loan of 400,000 on a 500,000 property is an 80% loan-to-value ratio.
What this calculator does not include
This calculator provides general estimates only. It is not financial, tax, legal, accounting or mortgage advice. It does not account for lender approval, credit score, changing rates, tax rules, refinancing, early repayment fees or all ownership costs.
Key terms and assumptionsFormula notes, key terms, source assumptions and limits used in this calculator.
These notes are specific to this calculator. Read the property methodology notes for shared property formulas, region settings and estimate limits.
- Loan amount
- The loan amount is estimated as property price minus deposit or down payment, floored at zero.
- Repayment type
- Principal and interest uses a standard amortized payment. Interest-only pays interest only and does not repay principal during the term shown.
- Optional monthly costs
- Taxes/rates, insurance, HOA/body corporate/service charge fees and other monthly costs are optional but can make the total housing cost more realistic.
- Region settings
- Region settings change defaults, labels and currency formatting only. They do not convert exchange rates or create country-specific results.
- General estimate
- Actual mortgage approvals, interest rates, insurance, taxes, lender fees and ownership costs can vary.
Guides and methodology
Plain-English notes that explain the assumptions behind related calculators and tools.
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FAQs
What is a mortgage payment?
A mortgage payment is the regular amount paid toward a home loan. In principal and interest mode it repays both interest and loan principal. In interest-only mode it pays interest only.
Is this also a mortgage repayment or home loan calculator?
Yes. The wording varies by region, but the calculator estimates the same basic home-loan repayment from the price, deposit, rate, term and costs entered.
What is the difference between principal and interest and interest-only?
Principal and interest payments gradually repay the loan balance. Interest-only payments are lower because they do not repay principal during the interest-only period.
Does this include property taxes and insurance?
It can. The optional monthly costs section lets you add property taxes or rates, home insurance, HOA/body corporate/service charge fees, mortgage insurance or loan fees, and other monthly costs.
What is loan-to-value?
Loan-to-value, or LTV, compares the loan amount with the property price. For example, an 80% LTV means the loan is 80% of the property price.
How does deposit or down payment affect the payment?
A larger deposit or down payment reduces the loan amount, which usually lowers the monthly mortgage payment and total interest.
Why does a longer term reduce monthly payment but increase total interest?
A longer term spreads repayment over more months, so the monthly payment may be lower. Interest has more time to accumulate, so total interest can be higher.
Can I use this calculator outside the United States?
Yes. Region settings change defaults, labels and currency formatting only. They do not perform exchange-rate conversion or provide local mortgage advice.
Does changing region convert currencies?
No. Region settings change defaults, labels and currency formatting only. They do not perform exchange-rate conversion.