Mortgage Calculator

On this page

How the mortgage calculator works

Every payment splits into principal (the loan you repay) and interest (the lender's charge). Early on most of it is interest; over time it shifts toward principal. The calculator uses the standard amortization formula for a level monthly payment, then adds property tax, insurance, PMI and HOA for your true monthly cost.

Monthly payment by mortgage amount

Roughly what common loan amounts cost per month at a 6.5% rate over 30 years (principal and interest only). Enter your own price, rate and term above for an exact figure.

Today's mortgage rates (and what to enter)

The interest rate you type in is the single biggest lever on your payment, so it helps to start from a realistic number. As of the week of August 13, 2026, the U.S. national average was about 6.67% for a 30-year fixed loan and 5.96% for a 15-year fixed — close to where they sat a year earlier. Shorter terms almost always carry a lower rate than 30-year loans.

Averages move every week, and the rate a lender actually quotes you depends on your credit score, down payment, loan type, points and the property itself — so treat the average as a starting point, then re-run the numbers with your own quote once you have one. It pays to test small changes: on a $300,000 loan, a quarter-point (0.25%) higher rate adds about $50 to the monthly payment, or roughly $18,000 over a 30-year term.

What pushes rates up or down? Broad forces — inflation, Federal Reserve policy and the 10-year Treasury yield — set the backdrop, and your own profile fine-tunes the rate from there.

Note: the current-rate figures above are national averages from Freddie Mac's Primary Mortgage Market Survey (PMMS), updated every Thursday. Check it for this week's benchmark before you lock a rate.

Types of home loans in the US

In the United States the loan program you qualify for shapes your rate, your minimum down payment and whether mortgage insurance applies. The five you'll hear about most:

• Conventional — the most common loan, not backed by a government agency. Needs reasonable credit; down payments start around 3%, and PMI applies below 20% down. “Conforming” loans stay within the annual limits set for Fannie Mae and Freddie Mac.
• FHA — insured by the Federal Housing Administration and aimed at first-time and lower-credit buyers. Allows about 3.5% down but carries its own mortgage insurance (MIP).
• VA — for eligible veterans, service members and some spouses. Often 0% down with no monthly mortgage insurance, in exchange for a one-time funding fee.
• USDA — for buyers in eligible rural and small-town areas who meet income limits; can be 0% down.
• Jumbo — for amounts above the conforming limit, used on higher-priced homes. Expect stricter credit, a larger down payment and cash reserves.

Any of these can be a fixed rate or an adjustable rate (ARM) — see fixed vs variable below. Whichever you pick, enter its rate and term above to compare the real monthly cost. Buying outside the US? Programs differ by country — the UK and Canadian calculators cover local products and rules.

Using it in any country

Home-loan maths is the same worldwide, so this tool isn't locked to one country. Leave tax, insurance, PMI or HOA at zero if they don't apply. For local rules, use the UK mortgage calculator (stamp duty, interest-only) or the Canadian mortgage calculator (semi-annual compounding, CMHC).

The real costs of a mortgage

The payment is only part of the cost. Add these for a realistic monthly budget:

• Property tax — annual local charge, often a small % of the property value.
• Home insurance — protects the building and your liability; usually yearly.
• PMI — US private mortgage insurance when the deposit is under 20%, dropped once you build enough equity.
• HOA / maintenance — recurring fees for shared upkeep in many communities.

Closing costs & cash to close

The down payment isn't the only cash you need on completion day. In the US, closing costs typically add about 2% to 5% of the loan amount and are paid up front, on top of your deposit. They usually include:

• Lender fees — loan origination, underwriting and any discount points you choose to buy.
• Third-party services — appraisal, credit report, home inspection, title search and title insurance, plus the settlement or escrow fee.
• Government charges — recording fees and, in some states, a transfer tax.
• Prepaids & escrow reserves — the first slice of property tax, home insurance and prepaid interest collected in advance.

Your “cash to close” is the down payment plus these costs, minus any earnest-money deposit already paid and any credits. Some fees are negotiable, and a seller concession or a lender credit (in exchange for a slightly higher rate) can cover part of them. Because this calculator focuses on the ongoing payment, budget closing costs separately — a good rule of thumb is a few percent of the price beyond your deposit.

Buying elsewhere? These one-off costs have local names — Stamp Duty and conveyancing fees in the UK, land transfer tax and the CMHC premium in Canada — which the UK and Canadian calculators build in.

Overpayments & paying off early

A modest extra payment each month is one of the best ways to cut a mortgage's lifetime cost — it comes straight off the balance, so that money never accrues interest again. Enter an amount under Extra Payments and the calculator shows your new payoff time and interest saved. Check first whether your lender charges early-repayment penalties.

Biweekly payments explained

Paying half your monthly amount every two weeks makes 26 half-payments a year — effectively 13 monthly payments instead of 12. That extra payment shortens the loan and trims interest. Tick Show Biweekly to see the figure.

Fixed vs variable interest rates

Mortgages come with either a fixed rate — the rate and payment stay the same for a set period, so they're predictable — or a variable (adjustable) rate that tracks the market, often starting lower but able to rise later. It's an ARM in the US, a tracker or SVR in the UK, and a variable rate across Australia, Canada and Europe. This calculator assumes a fixed rate — for a variable loan, re-run it whenever your rate changes.

15-year vs 30-year mortgages

A 30-year loan keeps payments low but costs far more interest overall. A 15-year loan has higher payments but clears the debt in half the time, saving a lot of interest — often at a lower rate. Use Compare 15 vs 30 yr or change the Loan Term to see both.

Tips to lower your payment

• Increase your down payment to shrink the loan and remove PMI.
• Consider a shorter term if the higher monthly payment is affordable — the interest saving is large.
• Shop several lenders; even a 0.25% lower APR can save thousands over the life of the loan.
• Set up a small recurring overpayment and let compounding work in your favour.

Still working out your budget? The home affordability calculator sets a sensible price range first, and if rates have fallen since you borrowed, the refinance calculator shows whether switching pays for itself.

Estimates only — not financial advice. Actual rates, taxes, insurance and fees vary by lender and location.

How to use it & key terms

Enter the home price or loan amount, your down payment, interest rate and term, add taxes and insurance if you like, then press Calculate for your monthly payment and full amortization schedule.

The four parts of a payment, and what moves each

A mortgage payment looks like a single number, but it is really four parts bundled together, often called PITI: principal, interest, taxes and insurance. Only the first two are the loan itself; the other two are the costs of owning the property, collected with the loan payment and held in escrow until they fall due. Seeing the payment as four parts explains why two people with the same loan can owe very different amounts each month, and where you actually have leverage.

Principal and interest are set by three numbers: the amount borrowed, the interest rate and the term. Each pulls the payment in a predictable direction. A larger loan raises the payment in proportion. A higher rate raises it too, and its effect grows with the size and length of the loan. The term works the other way, and less intuitively: stretching a loan over more years lowers the monthly payment but raises the total interest, because you borrow the money for longer. A shorter term does the reverse — a higher payment, but far less interest overall.

Taxes and insurance are not part of the loan at all, yet they can be a large slice of the payment and they tend to rise over time. Property tax depends on where you live and the assessed value of the home; homeowner's insurance depends on the property and its risks. Because these are collected monthly and adjusted as the bills change, a payment can climb even on a fixed-rate loan whose principal and interest never move. Private mortgage insurance may sit on top too, until enough equity builds for it to fall away.

Which lever to pull depends on your goal. To lower the payment, a longer term or a larger down payment helps most; to pay less interest overall, a shorter term or extra principal payments do the work. To trim the escrow portion, shopping insurance or appealing an assessment can help where the loan itself cannot. And if you are weighing a change of rate or term, our refinance calculator compares a new payment against the one you have now.