Mortgage Calculator
Calculate your monthly mortgage payment, total interest, and amortization schedule. Free mortgage calculator for USA, UK, Canada & Australia.
Monthly Payment
$1,769.79
principal + interest
Loan Amount
$280,000.00
Total Interest
$357,124.57
Total Cost
$637,124.57
Interest %
56.1%
Payment Breakdown
About the Mortgage Calculator
A mortgage calculator is one of the most important financial tools for any homebuyer. Whether you're buying your first home in the United States, United Kingdom, Canada, or Australia, understanding your monthly mortgage payment before you apply for a loan can save you thousands of dollars and prevent costly surprises. Our free mortgage calculator lets you estimate your monthly payment instantly by entering the home price, down payment, interest rate, and loan term.
Formula
M = P × [r(1+r)^n] / [(1+r)^n - 1]
How It Works
The mortgage payment formula used by every lender worldwide is M = P[r(1+r)^n] / [(1+r)^n - 1]. In this formula, M is your monthly payment, P is the principal loan amount (home price minus down payment), r is the monthly interest rate (annual rate divided by 12), and n is the total number of payments (loan term in years multiplied by 12). For a $300,000 loan at 6.5% interest over 30 years, this produces a monthly payment of approximately $1,896 — though your actual payment will also include property taxes, homeowner's insurance, and potentially PMI if your down payment is below 20%.
Tips & Best Practices
- ✓A 20% down payment eliminates PMI, saving $100–200/month on most loans.
- ✓Each 1% reduction in interest rate on a $300K loan saves roughly $170/month.
- ✓A 15-year mortgage builds equity twice as fast but costs 35–40% more per month.
- ✓Use the amortization table to see exactly when you cross the 50% equity milestone.
- ✓Extra principal payments early in the loan save disproportionately more interest.
Who Uses This Calculator
Real estate agents, first-time homebuyers, and existing homeowners refinancing all rely on mortgage calculators daily. This tool is equally useful for comparing different loan scenarios side by side — for example, deciding between a 15-year and 30-year term, or weighing a lower rate against higher closing costs. In the USA, the average 30-year fixed mortgage rate as of 2025 sits around 6.5–7%, making accurate payment estimation essential for household budgeting. UK buyers can use this calculator for both repayment and interest-only mortgages, while Canadian users can adapt it for 5-year fixed terms and 25-year amortization periods common in Canada.
Optimised for: USA · Canada · UK · Australia · Calculations run in your browser · No data stored
Frequently Asked Questions
How is a monthly mortgage payment calculated?
Monthly payment = P × [r(1+r)^n] / [(1+r)^n - 1], where P is principal, r is monthly interest rate, and n is number of payments.
What is a good mortgage interest rate?
A good rate depends on your credit score and market conditions. In 2025, rates between 6–7% for 30-year fixed are typical in the USA.
How much mortgage can I afford?
A common rule is that your monthly payment should not exceed 28% of your gross monthly income.