Mortgage Calculator
Full monthly cost including tax, insurance, and PMI.
Calculate your monthly mortgage payment with principal, interest, property tax, insurance and PMI. See the total interest paid over the life of the loan.
$80,000 down · $320,000 borrowed
Ownership costs
$400 per month
$150 per month
Not charged. You are putting 20% or more down.
Total monthly payment
$2,573
$320,000 loan over 30 years
Where each monthly payment goes
Principal and interest is only part of the cost of owning the home.
- Principal & interest$2,02379%
- Property tax$40016%
- Home insurance$1506%
How the Mortgage Calculator works
Most mortgage calculators only show principal and interest, which understates what you actually pay each month. This one adds property tax, homeowners insurance, HOA dues, and PMI so the number you see is closer to the real cost of owning the home.
Also known as: home loan calculator · how much can I borrow · monthly mortgage payment · repayment calculator
The costs beyond principal and interest
A principal and interest calculation gives a payment that nobody actually makes. The full monthly cost includes property tax or council tax, buildings insurance, and any mortgage insurance.
In the US these are commonly collected together in escrow and quoted as PITI: principal, interest, taxes and insurance. The additions frequently run 30% to 40% above the bare principal and interest figure.
In the UK, council tax and buildings insurance are usually paid separately, which makes the mortgage payment look smaller and the total cost of occupation no different. Budgeting from the mortgage payment alone is the most common way people overcommit.
Deposit, loan to value and the rate
Loan to value is the loan as a percentage of the property price, and it is the single largest determinant of the rate offered.
Rates step at thresholds, commonly 95%, 90%, 85%, 80%, 75% and 60%. Crossing one of those boundaries can change the rate meaningfully, which means a slightly larger deposit sometimes saves far more than the deposit itself.
Below 20% deposit in the US, private mortgage insurance is generally required, adding to the monthly cost until sufficient equity is built. In the UK there is no equivalent monthly insurance and the cost appears in the rate instead.
Fixed and variable
A fixed rate holds the interest rate for a defined period, commonly two, five or ten years in the UK, after which the loan reverts to the lender's standard variable rate unless a new product is arranged.
That reversion is where people are caught out. Standard variable rates are usually considerably higher than the fixed rate that preceded them, and the payment can rise sharply on a date that was set years earlier.
Trackers follow a reference rate, usually the central bank rate plus a margin, and move with it. Discounted variable rates sit below the lender's standard rate for a period. Each carries different exposure to rate changes, and the right choice depends on how much payment certainty is worth.
Term length
A longer term reduces the monthly payment and increases the total interest, and the relationship is not linear.
On £250,000 at 5%, a 25 year term costs roughly £1,462 a month and £188,000 of interest. Extending to 35 years reduces the payment to about £1,262 and raises the interest to roughly £280,000.
So £200 a month saved costs £92,000. Whether that is worth it depends on what else the £200 does. Longer terms have become considerably more common as prices have risen relative to incomes, and terms extending past retirement age carry an obvious question that lenders now ask.
Affordability against the maximum
Lenders assess affordability using income multiples and stress tests, and the maximum they will lend is not a recommendation.
UK lenders typically lend up to four and a half times income, with stress testing against a higher rate than the one offered, which is a requirement introduced after the financial crisis for good reasons.
Borrowing at the maximum leaves no room for a rate rise, a job change, a repair, or a child. The conventional guidance of keeping housing costs under about a third of net income exists because of what happens when it is exceeded, and a calculator that shows what is possible is not showing what is sensible.
Where to go next
The Mortgage question rarely arrives on its own. These are the ones that usually come with it:
- Loan & EMI Calculator — Monthly payment, total interest, and a full amortization schedule.
- Compound Interest Calculator — See how savings grow with regular contributions.
- Car Affordability Calculator — Worked back from income, with running costs taken out first.
- Auto Refinance Calculator — The monthly saving, against what it costs over the life.
Not financial advice. This calculator is for planning and illustration, not financial advice. Real products carry fees, taxes, and terms it does not model. Confirm figures with your lender or a qualified adviser before committing.
Frequently asked questions
What is included in a monthly mortgage payment?
Four components, often abbreviated PITI: Principal, Interest, Taxes, and Insurance. If your down payment is under 20%, private mortgage insurance (PMI) is usually added, and a condo or planned community may add HOA dues on top.
When does PMI go away?
In the US, PMI is typically cancellable once you reach 20% equity, and lenders must automatically terminate it at 22% equity based on the original schedule. This calculator drops PMI from the payment once the loan balance falls below 80% of the home value.
How much house can I afford?
A common guideline is that total housing costs should stay under 28% of gross monthly income, and all debt payments under 36%. Enter a target payment here and work backwards to a price that fits those ratios.
Should I make a larger down payment?
A larger down payment lowers the loan amount, removes PMI at 20%, and often earns a better rate. The trade-off is losing liquidity, so keep an emergency fund rather than putting every available dollar into the down payment.
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