๐ Mortgage Calculator
A mortgage calculator that computes the monthly principal-and-interest payment based on the loan amount (home price minus down payment). Add your estimated annual property tax and homeowners insurance to see the real total monthly payment including those costs.
How to use
- Enter the home price and down payment (the loan amount is calculated automatically).
- Enter the annual interest rate and loan term.
- Enter your estimated annual property tax and homeowners insurance (rough estimates are fine).
- The loan amount, monthly principal & interest, total monthly payment including tax/insurance, and total interest are calculated automatically.
How the calculation works
This tool takes the property price minus the down payment as the loan amount and calculates a level (annuity) monthly payment. With loan amount P, monthly rate r (annual rate รท 12) and n payments (years ร 12), the monthly principal-and-interest payment is P ร r ร (1 + r)โฟ รท ((1 + r)โฟ โ 1). Owning a home brings costs beyond the loan, such as property tax and fire insurance. Enter the expected annual amounts and the tool adds a twelfth of each to the loan payment to show your real monthly outgoing. When judging what a home will do to your budget, it is these running costs as well as the loan payment that count.
Worked example
A ยฅ40,000,000 property with a ยฅ5,000,000 down payment, at 1.0% over 35 years 1. Loan amount: 40,000,000 โ 5,000,000 = ยฅ35,000,000 2. Monthly principal and interest: about ยฅ98,800 3. Property tax (ยฅ120,000 a year) and fire insurance (ยฅ24,000 a year), monthly: 10,000 + 2,000 = ยฅ12,000 4. Total monthly outgoing: about ยฅ110,800 The loan payment alone is about ยฅ99,000, but the real monthly cost is about ยฅ111,000.
Things to be aware of
- With a variable rate, payments change when the rate does; this assumes a constant rate throughout.
- Condominiums also carry monthly management fees and repair reserve contributions; add these separately if relevant.
- Tax incentives such as the housing loan deduction are not included.
- Property tax depends on the assessed value and the municipality; confirm the actual figure from your local tax notice.
FAQ
Does this account for the difference between amortizing and interest-only loans?
This tool calculates a standard fixed-payment amortizing loan, where the principal & interest payment stays the same every month.
Can I calculate a loan with no down payment?
Yes โ set the down payment to 0 to calculate the payment for financing the full home price.
What happens if I leave tax and insurance blank?
They're treated as 0, so the total monthly payment shown will just be the principal & interest amount.
Can I use this for a general loan calculation too?
Yes โ set the down payment and tax/insurance to 0 and it behaves like a standard loan calculator. For general-purpose loans, our Loan Calculator is also available.