ToolPikaHow it works
The loan amount is the home price minus the down payment. The monthly payment then follows the standard formula for a fixed-rate repayment mortgage:
payment = loan × r ÷ (1 − (1 + r)^−n)
where r is the yearly rate divided by 12 and n the number of monthly payments. In the early years most of each payment is interest; towards the end almost all of it pays down the loan. The yearly schedule shows this split and can be downloaded as a CSV file.
Examples
For a 350,000 home with a 20% down payment (a 280,000 loan):
| Rate and term | Monthly payment | Total interest |
|---|---|---|
| 6%, 30 years | 1,678.74 | 324,346.93 |
| 6%, 15 years | 2,362.80 | 145,303.84 |
| 5%, 30 years | 1,503.10 | 261,116.20 |
One percentage point less on the rate saves 175.64 a month and more than 63,000 in interest over 30 years.
Before you decide
- Fixed vs variable. The calculator assumes a fixed rate for the whole term. With a variable or tracker rate, run it again with a higher rate to see how the payment could change.
- Down payment. A larger down payment lowers the loan, the payment and the interest, and in many countries avoids mortgage insurance.
- Total cost. Compare offers by the total paid over the term, including fees, not just by the monthly payment.