Enter the amount you are borrowing, the annual interest rate and the term, and this calculator returns the monthly payment plus the total interest you will pay over the life of the loan.
The payment uses the standard annuity formula: constant monthly instalments where the interest share shrinks and the principal share grows over time. The Amortization Schedule tool breaks this down year by year.
The figure excludes property taxes, insurance and fees. For an EU loan where lenders must quote an APRC including fees, the EU Mortgage (APRC) calculator gives the truer comparison figure.
The rate is fixed here for the whole term, which describes the US market and few others. In much of Europe a fixed period of two to ten years is followed by a reversion to a variable rate, and in some markets the rate floats from the start — so the payment shown is a payment for now rather than for the term. Where that applies, the useful exercise is to rerun the figure two or three points higher and check the result is still affordable, which is close to what a lender does when it stress-tests the application.
Frequently asked questions
How is a monthly mortgage payment calculated?
With the annuity formula: payment = P × r × (1+r)^n / ((1+r)^n − 1), where P is the loan amount, r the monthly rate and n the number of months. The calculator does this for you.
Does a shorter term save money?
Yes — a 20-year loan has higher monthly payments than a 30-year one but dramatically less total interest, because the balance is repaid faster.
Should I overpay my mortgage?
Overpayments cut total interest and shorten the term, and they bite hardest early in the loan. Weigh the guaranteed saving at your mortgage rate against what the money could earn elsewhere, and check for early-repayment fees.