Mortgage Calculator

Calculate your monthly mortgage payment with full PITI breakdown (principal, interest, taxes, insurance, HOA and PMI), see the complete amortization schedule, and discover how much you can save with extra or bi-weekly payments. Free, multi-currency, no signup.

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Show advanced (PITI)
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PMI (Private Mortgage Insurance) is added at 0.5% of the loan amount per year and stops automatically once the loan-to-value ratio falls below 80%.

Show extra payments
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Equivalent to one extra monthly payment per year — can cut years off your mortgage.

Monthly Payment
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Principal + Interest

Lifetime Cost Breakdown

Mortgage cost breakdown

Principal vs Interest Over Time

Amortization chart over time

Amortization Schedule

DatePaymentPrincipalInterestBalance

What Is a Mortgage Calculator and How Does It Work?

A mortgage calculator is a free tool that estimates your monthly home loan payment based on the home price, down payment, interest rate and loan term. Modern calculators like this one go further: they include property taxes, homeowners insurance, HOA fees and PMI — together called PITI — to give you a realistic picture of your true monthly housing cost. They also generate an amortization schedule showing exactly how each payment is split between principal and interest, month by month, until the loan is fully paid off.

Under the hood, every fixed-rate mortgage uses the same amortization formula. Given a loan amount P, a monthly interest rate r and a total number of monthly payments n, the monthly payment M is calculated as M = P × [r(1+r)^n / ((1+r)^n − 1)]. The result is a constant payment that gradually shifts from being mostly interest in the early years to mostly principal at the end — a process called amortization.

How to Use This Mortgage Calculator — Step by Step

This free online mortgage calculator runs entirely in your browser. Nothing is sent to a server, and your inputs are saved locally so you can come back and refine them later.

Step 1 — Select your currency. Choose USD, EUR, GBP, CAD or AUD. All values and amortization data will be displayed in the chosen currency format. The calculator does not convert exchange rates — it simply formats the numbers correctly for your locale.

Step 2 — Enter the home price and down payment. You can express the down payment as a dollar amount or as a percentage of the home price using the inline toggle. A down payment of at least 20% lets you avoid PMI (Private Mortgage Insurance) entirely.

Step 3 — Choose your loan term and interest rate. The most common terms in the United States are 15 and 30 years, but you can pick anywhere from 10 to 40 years. Enter the annual interest rate as a percentage (for example, 6.5 for a 6.5% rate). Use the current rate offered by your lender, or experiment with a few values to see how the rate affects your total interest cost.

Step 4 — Open the advanced (PITI) section. Add your local property tax rate (typically 0.5% to 2.5% per year depending on your state or country), your annual home insurance premium, and any monthly HOA fees if you live in a community with shared services. The calculator automatically applies PMI when your down payment is below 20%.

Understanding PITI: Principal, Interest, Taxes and Insurance

Your true monthly housing payment is rarely just principal and interest. The full picture, known as PITI, includes four core components plus two common add-ons:

When PMI Applies and How to Avoid It

Most US lenders require PMI when your loan-to-value ratio (LTV) exceeds 80% — in other words, when you put less than 20% down. PMI typically costs between 0.3% and 1.5% of the original loan amount per year, added to your monthly payment. By law (the Homeowners Protection Act of 1998), lenders must automatically cancel PMI once your loan balance drops to 78% of the original home value. You can also request cancellation at 80% LTV. This calculator models PMI at a standard 0.5% per year and automatically stops adding it the month your balance crosses the threshold.

Save Thousands with Extra Mortgage Payments

The single most powerful way to reduce the total cost of a mortgage is to pay extra principal early. Because interest is charged on the remaining balance, every dollar paid above the scheduled amount reduces all future interest charges. On a 30-year, $300,000 loan at 6.5%, an extra $200 per month can shorten the term by more than five years and save over $80,000 in interest.

This calculator lets you model three types of extra payments simultaneously: a fixed amount added every month, a one-time lump sum on a specific date, and a toggle for bi-weekly payments. Bi-weekly payments work by paying half your monthly payment every two weeks, which adds up to 26 half-payments — or 13 full monthly payments — per year. That single extra payment annually is enough to shave several years off a 30-year mortgage.

Bi-Weekly Payments vs Monthly: The Real Difference

True bi-weekly mortgage programs are offered by many lenders, but you can replicate the same effect on your own by simply making one extra monthly payment per year — either as a 13th payment at year-end or by splitting your annual bonus into a one-time principal payment. The calculator implements the bi-weekly toggle as one extra full monthly payment every twelve months, which matches the net effect on amortization without the complexity of a 26-payment schedule.

Fixed-Rate vs Adjustable-Rate Mortgages

This calculator models a fixed-rate mortgage — the interest rate stays the same for the entire term, which means a fully predictable monthly payment. Adjustable-rate mortgages (ARMs) start with a lower introductory rate that resets after a defined period (typically 5, 7 or 10 years), making them harder to model precisely. For most homebuyers, a fixed-rate mortgage offers the safest path: you know exactly what you owe every month for the next 15 or 30 years. Use this calculator with the current fixed rate offered by your lender to plan your budget with confidence.

Closing Costs and Other Hidden Expenses

This calculator focuses on the recurring monthly cost of owning a home. It does not include one-time closing costs (typically 2–5% of the loan amount), moving expenses, ongoing maintenance (a common rule of thumb is 1% of the home value per year), or utilities. When budgeting for a home purchase, set aside a separate emergency fund and budget for these expenses in addition to the monthly payment shown here.

Real-World Mortgage Examples

First-time buyer — $350,000 home, 10% down, 30 years at 6.75%
Loan amount:        $315,000
Monthly P&I:        $2,043.41
PMI (first ~7 yrs): $131.25 / month
Total interest:     $420,628 over 30 years
Tip: A bi-weekly payment cuts ~4 years and saves ~$72,000 in interest.
Refinance scenario — $250,000 balance, 20 years at 5.5%
Monthly P&I:        $1,719.79
Total interest:     $162,750 over 20 years
Tip: Adding $300/month extra ends the loan in 15 yrs 2 mo and saves ~$48,000.
15-year vs 30-year — $400,000 loan at 6.5%
30-year payment:    $2,528.27   →  Total interest: $510,178
15-year payment:    $3,484.93   →  Total interest: $227,287
Difference:         +$956.66 / month, saves $282,891 over the life of the loan.

Country-specific notes: what bank calculators don’t show

Editor’s note — by Amine H., last reviewed 27 May 2026.

The amortization formula on this page is universal — M = P · r(1+r)n / ((1+r)n − 1) works the same in Tokyo, Toronto and Tunis. The actual total cost of a mortgage, however, depends on country-specific add-ons that bank calculators conveniently bury. Below are the five layers that move the math by 5–15% of the loan over its lifetime.

United States — PMI and the 20% threshold

If your down payment is below 20%, lenders require Private Mortgage Insurance (PMI) until you reach 20% equity. PMI typically costs 0.3–1.5% of the loan amount per year, added to the monthly payment. On a $400 000 loan at 1% PMI, that is roughly $333/month — often more than the interest saving from a slightly lower headline rate. Practical strategies: either reach 20% down at closing, refinance the moment you cross the 20%-equity line, or compare FHA versus conventional offers explicitly — FHA loans carry their own MIP (Mortgage Insurance Premium) with different rules.

United Kingdom — Stamp Duty and short-fix cycles

The UK does not use PMI but applies Stamp Duty Land Tax on the purchase (banded, reaching 12%+ on high-value or additional homes). Fixed-rate mortgages are usually short (2, 3, or 5 years) and revert to a much higher Standard Variable Rate at the end of the fix — most borrowers refinance in cycles, each cycle adding broker, valuation and product fees. A 25-year UK mortgage is in practice a sequence of five short fixes, not one long contract.

France — Assurance emprunteur (legally required)

French mortgages legally require borrower insurance (death and disability cover) for the duration of the loan. Cost: typically 0.10–0.40% of the loan per year, depending on age and health. Until 2022 banks tied this insurance to themselves; since the loi Lemoine you can switch insurer at any time and frequently save several thousand euros over the loan. Also pay attention to the TAEG (Taux Annuel Effectif Global), which includes all fees and is the only number worth comparing across offers — the nominal rate is marketing.

Canada — CMHC insurance and the federal stress test

Below 20% down: CMHC mortgage default insurance is mandatory (premium rolled into the loan, 2.8–4.0% of the principal). Above 20%: optional. All borrowers face a federal stress test — you must qualify at your contract rate plus 2% (or the Bank of Canada benchmark, whichever is higher), even though the monthly payment is computed at the lower contract rate.

Germany — no PMI, but heavy Nebenkosten

No mortgage insurance, but Nebenkosten (closing costs) add 10–15% to the cash needed at closing: notary 1–2%, real-estate transfer tax (Grunderwerbsteuer) 3.5–6.5% depending on the federal state, agent commission 3–6% (often split with the seller post-2020). The amortization may say €200k loan, but you brought €230k to the table.

Takeaway: use the calculator above for the universal principal-and-interest math. Then add your country’s real cost layer: PMI (US), Stamp Duty plus rate-cycle planning (UK), assurance emprunteur and TAEG (FR), CMHC plus stress test (CA), Nebenkosten (DE). A complete view requires the calculator and the local cost layer — one without the other gives a total that’s off by 5–15%, usually in the wrong direction.

Sources: U.S. CFPB · HMRC stamp duty (UK) · Loi Lemoine (FR) · CMHC (CA).

Frequently Asked Questions

The standard amortization formula is M = P × [r(1+r)^n / ((1+r)^n − 1)], where P is the loan amount, r is the monthly interest rate (annual rate ÷ 12), and n is the total number of monthly payments. This produces a constant payment for the life of a fixed-rate loan. The split between principal and interest changes each month — early on most of the payment is interest, later most goes to principal.

PITI stands for Principal, Interest, Taxes and Insurance — the four core components of a complete monthly mortgage payment. In the United States, lenders typically collect taxes and insurance in an escrow account along with the loan payment, then pay them on your behalf when they come due. PMI (when applicable) and HOA fees are sometimes added on top, giving the full picture of your monthly housing cost.

Under US federal law (the Homeowners Protection Act), lenders must automatically cancel PMI once your loan balance reaches 78% of the original home value. You can also request cancellation at 80% LTV. This calculator automatically stops adding PMI to the monthly payment the month your balance crosses below 80% of the home price.

Bi-weekly payments effectively add one extra monthly payment per year, which can shorten a 30-year mortgage by 4–6 years and save tens of thousands in interest. If your lender offers a true bi-weekly program with no fees, it's almost always worth doing. If they charge enrollment fees, you can achieve the same result on your own by making one extra principal payment each year. Toggle the bi-weekly option in the calculator to see your exact savings.

A 20% down payment is the classic benchmark because it lets you avoid PMI entirely, lowers your monthly payment, and builds immediate equity. That said, many lenders accept 3% (conventional), 3.5% (FHA), or even 0% (VA, USDA) down. The trade-off: smaller down payments mean higher monthly payments, more interest paid over the life of the loan, and PMI until you reach 20% equity. Use this calculator to compare scenarios and find the right balance for your budget.

Amortization is the process of gradually paying off a loan through equal periodic payments. Each payment includes both interest (charged on the current balance) and principal (which reduces the balance). Early in the loan, most of each payment is interest; by the end, most of it is principal. An amortization schedule shows this breakdown month by month — useful for understanding exactly where your money is going and how much equity you've built.

Most US mortgages issued after 2014 cannot charge a prepayment penalty thanks to the Dodd-Frank Act. However, some older loans, jumbo loans, and certain non-qualified mortgages may include prepayment clauses — check your loan documents before making large extra payments. Paying down principal early is one of the most effective ways to reduce total interest cost over the life of a mortgage.

The principal and interest calculations are mathematically exact for a fixed-rate amortizing mortgage. Property tax and insurance estimates depend on the values you enter — they are not pulled from any external database. PMI is modeled at a standard 0.5% per year, but actual rates vary by lender (typically 0.3% to 1.5%). This calculator is intended for planning and estimation. For binding figures, always consult your loan officer or a Loan Estimate document.

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