How is a mortgage payment calculated?

Monthly payment = P × r × (1+r)ⁿ ÷ ((1+r)ⁿ − 1), where P is the amount borrowed, r is the monthly rate and n is the number of months.

How much deposit do I need?

It depends on the lender and country. A larger deposit usually means a lower rate and lower payments.

Should I choose 15 or 30 years?

A shorter term costs more each month but far less in total interest. A longer term lowers the payment but costs more over time.

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Mortgage Calculator

Enter the price, your deposit, the interest rate and the term to see the monthly principal-and-interest payment.

Loan Details

Home price

Down payment

Interest rate (% per year)

Term

Calculate the monthly principal-and-interest payment, total interest and full repayment cost of a home loan from price, deposit, rate and term.

Formula

monthly = P × r × (1+r)^n ÷ ((1+r)^n − 1), where P = price − deposit, r = annual rate ÷ 12 ÷ 100 and n = years × 12.

Reference Values

•A 20% deposit usually earns better rates
•30-year terms maximise cash flow
•Taxes and insurance are paid on top of this payment

FAQ

Common questions about Mortgage Calculator

How we calculate this

We use the standard published formula for this calculation, and we show the working so you can check it.

Spotted a mistake? Tell us and we'll check it within a few days. See how we check our calculators.

Financial disclaimer

Results are estimates based on the numbers you enter. Real products have fees, rate changes and rules this tool does not model. Check figures with your lender or a qualified adviser before you decide.