What does the monthly payment include?

This calculator shows principal and interest only. Your actual payment may also include property taxes (typically 1–2% of the home's value per year) and homeowners insurance — both vary by country and region. Add those separately to get your true monthly housing cost.

Should I choose a 15-year or 30-year mortgage?

A 15-year term roughly doubles the monthly payment but cuts total interest by about half. On a $300K loan at 6.5%, a 30-year term costs ~$382K in interest; a 15-year term costs ~$121K. Choose 15 years if you can comfortably afford the higher payment. Choose 30 years if you need cash-flow flexibility or plan to invest the difference.

How does my down payment affect the monthly payment?

A larger down payment reduces the loan principal directly, which lowers every monthly payment. In many countries a down payment below 20% triggers mortgage insurance (called PMI in the US), adding roughly 0.5–1% of the loan per year. Enter only the amount you're actually borrowing — subtract your down payment from the purchase price first.

How does my credit score affect my mortgage rate?

Lenders price risk through the interest rate they offer: a credit score jump from 650 to 750 can lower your rate by 0.5–1.5%. On a $300K mortgage, a 1% rate reduction saves roughly $200/month and over $60K across a 30-year term. Check your credit report 3–6 months before applying — enough time to dispute errors and pay down balances.

Does this calculator work for all countries?

Yes. The mortgage payment formula is the same worldwide. Enter your loan amount in any currency, your local interest rate, and your loan term. All calculations run in your browser — no external data, no country-specific tax rules, no internet connection required.

Is LoanCalc completely free?

Yes, completely free. No account required. No signup. No email collection. No premium features behind a paywall. The calculator, amortization schedule, and payment breakdown chart are all fully accessible at no cost.

Free Loan Calculator – Mortgage, Car, Personal & Student Loans

Loan amount

$1,000$2,000,000

Annual interest rate

0.1%30%

Loan term

years

1 yr30 yrs

Typical 30-year US mortgage Rates vary by lender and credit score. Enter your own numbers above for a personalized estimate.

Monthly payment

$1,896

30-year fixed mortgage

Principal

$300,000

Total interest

—

over 30 years total

Total cost

—

Payoff year

—

Principal — Interest —

Payment breakdown

How your total cost is split between the amount borrowed and interest paid to the lender.

—

principal

Principal borrowed

—

Total interest paid

—

Total amount repaid —

Loan fully paid off —

Amortization schedule

Year-by-year breakdown of every payment.

Year	Starting balance	Principal paid	Interest paid	Ending balance

How loan payments are calculated

Every fixed-rate loan uses the same standard amortization formula. Your monthly payment is calculated so that equal instalments cover both the interest accruing on the remaining balance and a portion of the original principal, fully paying off the loan by the final month.

The formula

M = P × [ r(1+r)ⁿ ] ÷ [ (1+r)ⁿ − 1 ]

MMonthly payment

PPrincipal (the loan amount)

rMonthly rate (annual rate ÷ 12)

nTotal payments (years × 12)

How to lower your monthly payment

Three levers control your monthly payment. Adjusting any one of them immediately changes what you owe each month:

A larger down payment reduces the principal directly: less borrowed means lower monthly payments and less total interest paid.
A longer loan term spreads payments over more months. Your monthly bill drops, but total interest paid over the life of the loan increases.
A lower interest rate has a compounding effect: even 0.5% difference on a $300,000 mortgage saves over $30,000 in total interest.
Improving your credit score before applying typically qualifies you for better rates. Check your score 3–6 months before borrowing.

Frequently asked questions about the mortgage calculator

This calculator shows principal and interest only. Your actual payment may also include property taxes (typically 1–2% of the home's value per year) and homeowners insurance — both vary by country and region. Add those separately to get your true monthly housing cost.
Should I choose a 15-year or 30-year mortgage?
A 15-year term roughly doubles the monthly payment but cuts total interest by about half. On a $300K loan at 6.5%, a 30-year term costs ~$382K in interest; a 15-year term costs ~$121K. Choose 15 years if you can comfortably afford the higher payment. Choose 30 years if you need cash-flow flexibility or plan to invest the difference.
A larger down payment reduces the loan principal directly, which lowers every monthly payment. In many countries a down payment below 20% triggers mortgage insurance (called PMI in the US), adding roughly 0.5–1% of the loan per year. Enter only the amount you're actually borrowing — subtract your down payment from the purchase price first.
Lenders price risk through the interest rate they offer: a credit score jump from 650 to 750 can lower your rate by 0.5–1.5%. On a $300K mortgage, a 1% rate reduction saves roughly $200/month and over $60K across a 30-year term. Check your credit report 3–6 months before applying — enough time to dispute errors and pay down balances.
Yes. The mortgage payment formula is the same worldwide. Enter your loan amount in any currency, your local interest rate, and your loan term. All calculations run in your browser — no external data, no country-specific tax rules, no internet connection required.
Yes, completely free. No account required. No signup. No email collection. No premium features behind a paywall. The calculator, amortization schedule, and payment breakdown chart are all fully accessible at no cost. LoanCalc is supported by display advertising: the calculator itself will always remain free.

Compound interest & savings growth calculator

See exactly how your savings or investment grows year by year with compound interest.

Initial deposit

$100$1,000,000

Monthly contribution

$0$10,000/mo

Annual return rate

0.1%30%

Investment period

years

1 yr50 yrs

S&P 500 historical average The US stock market has returned ~7% annually after inflation over the long term.

Future value

—

Total portfolio after 20 years

Total deposited

—

Interest earned

—

Growth multiple

—

Target year

—

Deposits — Growth —

Year-by-year growth

Balance at end of each year, split between your deposits and compound growth.

Refinance calculator: how much will you save?

Enter your current loan details and the new rate you've been offered.

Current loan

Remaining balance

$1,000$2,000,000

Current interest rate

0.5%20%

Years remaining

years

1 yr30 yrs

New loan offer

New interest rate

0.5%20%

Closing costs

$0$20,000

Monthly savings

—

Per month with the new rate

Old payment

—

New payment

—

Break-even

—

Total lifetime savings

—

Enter your loan details to see if refinancing makes sense.

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Convert between major currencies with live exchange rates. Also shows live gold and oil prices in your local currency.

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Mortgage Calculator: Everything You Need to Know

This calculator is for home loans and mortgages. For car loans, personal loans, or student loans, use the Loan Calculator.

What is a mortgage calculator and who should use it?

A mortgage calculator is a financial tool that computes your monthly payment on a home loan based on three inputs: the loan amount (principal), the annual interest rate, and the loan term in years. Anyone considering buying a home, comparing loan offers, or trying to understand the long-term cost of borrowing should use one before signing a mortgage agreement.

First-time homebuyers use mortgage calculators to reality-check affordability before house hunting. Existing homeowners use them to explore refinancing scenarios or to model the impact of making extra payments. Real estate investors use them to estimate cash flow on rental properties. The calculator works identically for fixed-rate mortgages worldwide — whether you're borrowing in USD, EUR, GBP, or any other currency.

How the monthly payment formula works

Every fixed-rate mortgage uses the same standard amortization formula:

M = P × [ r(1+r)ⁿ ] ÷ [ (1+r)ⁿ − 1 ]

Where M is your monthly payment, P is the principal loan amount, r is the monthly interest rate (annual rate ÷ 12), and n is the total number of monthly payments (years × 12). This formula produces a fixed monthly amount that covers both the interest accruing on the remaining balance and a portion of the principal, with the ratio shifting over time. In the early years, most of each payment is interest. By the final years, most of each payment reduces the principal.

What affects your mortgage rate?

Your actual mortgage rate depends on several factors lenders evaluate when approving your application:

Credit score: Borrowers with scores above 760 typically receive the lowest available rates. Each 20-point drop in credit score can increase your rate by 0.1–0.5%, adding thousands in total interest over 30 years.
Loan-to-value ratio (LTV): A lower LTV (larger down payment) signals less risk to the lender. Putting down 20% or more usually eliminates private mortgage insurance (PMI) and may qualify you for a better rate.
Loan type: Conforming loans (within Fannie Mae/Freddie Mac limits) typically carry lower rates than jumbo loans. Government-backed loans (FHA, VA, USDA) have their own rate structures.
Loan term: 15-year mortgages carry lower interest rates than 30-year mortgages because the lender's money is at risk for a shorter period.
Market conditions: Mortgage rates are heavily influenced by the 10-year Treasury yield and Federal Reserve policy. When the Fed raises rates to combat inflation, mortgage rates tend to rise in tandem.

15-year vs 30-year mortgage: the real tradeoff

The choice between a 15-year and 30-year mortgage is fundamentally a tradeoff between monthly cash flow and total interest paid. Here's an example for a $300,000 loan:

Loan	Rate	Monthly payment	Total interest	Total cost
$300,000 / 30yr	6.0%	$1,799	$347,515	$647,515
$300,000 / 30yr	6.5%	$1,896	$382,633	$682,633
$300,000 / 30yr	7.0%	$1,996	$418,527	$718,527
$300,000 / 15yr	6.0%	$2,532	$155,683	$455,683
$300,000 / 15yr	6.5%	$2,614	$170,453	$470,453
$300,000 / 15yr	7.0%	$2,696	$185,358	$485,358

At 6.5%, a 30-year mortgage costs $382,633 in total interest versus $170,453 for a 15-year mortgage — a difference of over $212,000. However, the 30-year mortgage's monthly payment is $718 lower, which matters significantly if cash flow is tight or you want to invest the difference.

What is PMI and when does it apply?

Private mortgage insurance (PMI) is required by most US lenders when your down payment is less than 20% of the home's purchase price. PMI protects the lender if you default. The typical cost is 0.5–1.5% of the loan amount per year, added to your monthly payment. On a $300,000 loan, PMI can add $125–$375 per month. Once your equity reaches 20% (either through payments or home appreciation), you can typically request PMI cancellation. Lenders must automatically cancel PMI when your loan balance reaches 78% of the original purchase price.

How to pay off your mortgage faster

Make one extra payment per year: On a 30-year mortgage, one additional monthly payment per year reduces the loan term by approximately 4–5 years and saves tens of thousands in interest.
Switch to biweekly payments: Instead of 12 monthly payments, make 26 half-payments per year. This results in one extra full payment annually without you noticing a significant cash flow impact.
Round up your payment: If your payment is $1,847, paying $1,900 or $2,000 each month directs the extra amount entirely to principal, accelerating payoff.
Apply windfalls: Tax refunds, bonuses, or inheritances applied as lump-sum principal payments can shave years off your mortgage term.

Also useful: Refinance Calculator — see if a lower rate makes sense for your current mortgage. Or explore other loan types including car loans, personal loans, and student loans.