Mortgage Calculator

How to use Mortgage Calculator

1. 1
   Enter the home loan amount

   Type or slide to set the mortgage principal. The tool defaults to $400,000 — a common home loan size — but you can adjust to any amount and switch currency to match your country.

2. 2
   Enter the interest rate

   Enter your lender's quoted mortgage rate. Typical 30-year fixed rates range from 6–8% in the US; rates vary by country, credit score, and loan type.

3. 3
   Set the loan tenure

   Mortgages commonly run for 15 or 30 years. Switch between years and months using the toggle. Shorter tenures mean higher monthly payments but far less total interest.

4. 4
   Review your payment and interest breakdown

   Your monthly payment, total interest payable, and principal vs interest chart update instantly. Use this to compare offers from different lenders.

5. 5
   Simulate prepayment

   Use the Prepayment Simulator to see how a one-time lump-sum payment reduces your remaining tenure and total interest — particularly impactful on long 30-year mortgages.

Frequently Asked Questions

What is a good mortgage interest rate?

As of 2025, 30-year fixed mortgage rates in the US typically range from 6–8% per annum. Rates depend on your credit score (740+ usually qualifies for the best rates), loan-to-value ratio, down payment size, and the lender. 15-year fixed mortgages carry lower rates (roughly 0.5–0.75% less) but higher monthly payments. Rates also vary significantly by country — check with local lenders for current offers.

What is the maximum mortgage tenure?

Most lenders offer mortgages for up to 30 years in the US, though 15-year and 20-year terms are also common. Some countries offer 25-year or 35-year terms. Longer tenures reduce the monthly payment but significantly increase the total interest paid over the life of the loan.

How does a mortgage amortization schedule work?

An amortization schedule shows the month-by-month breakdown of each payment into principal and interest components. In early years, the interest component is high and the principal repayment is low. As the outstanding balance reduces, more of each payment goes toward the principal. The full schedule is available to download as CSV from this calculator.

Should I choose a fixed or adjustable rate mortgage?

A fixed rate mortgage locks in your payment for the entire term — providing certainty and protection against rising rates, but usually at a slightly higher initial rate. An adjustable rate mortgage (ARM) starts lower but resets periodically based on a market index, introducing payment uncertainty. Fixed rates are preferred when rates are low or expected to rise; ARMs can make sense for short-term ownership or when rates are high and expected to fall.

How much mortgage can I afford based on my income?

A common guideline is that your total monthly housing costs (principal, interest, taxes, insurance) should not exceed 28% of your gross monthly income, and your total debt obligations should not exceed 36% (the 28/36 rule). For example, with a gross monthly income of $8,000, a housing payment of up to $2,240 and total debts up to $2,880 is typically considered manageable. Use this calculator to find a loan amount and tenure where the monthly payment fits within that range.

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