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How to use
Estimate the core monthly payment on a fixed-rate mortgage from the property price, down payment, annual rate and term. The calculator also shows the amount financed, total interest and total loan payments so you can compare scenarios instead of looking only at the monthly figure.
- Enter the full property price.
- Enter the down payment amount you plan to pay upfront.
- Enter the annual rate and loan term, then compare the monthly payment and lifetime cost.
How it is calculated
Example
Example: a property price of 800,000 with a 160,000 down payment leaves 640,000 financed. At a fixed 5% rate for 25 years, the estimated principal-and-interest payment is about 3,741 per month before other costs. Educational comparison: property price 250,000 minus a 50,000 down payment gives a 200,000 loan. At an assumed fixed 6% annual rate, the payment is about 1,432.86 over 20 years or 1,687.71 over 15 years. These are hypothetical inputs, not current offers; fees, insurance and taxes are excluded.
Important notes
This is a planning estimate based on a standard fixed-payment amortization formula. It does not automatically include taxes, insurance, HOA charges, lender fees, mortgage insurance or product-specific rules. A lender’s formal offer remains the reference and this calculator is not a credit approval.
Worked examples and interpreting results
A hypothetical property price of 100000 with a 20000 down payment leaves 80000 financed. At fixed 6% over 10 years, principal-and-interest payment is about 888.16 monthly.
| Case | Calculation | Result |
|---|---|---|
| Amount financed | 100000 − 20000 | 80,000 |
| Loan-to-value ratio | 80000 ÷ 100000 × 100 | 80 % |
| Payment on 200,000, assumed 6%, 20 years | 200000 × 0.005 ÷ (1 − 1.005^−240) | 1,432.862117 |
| Same loan over 15 years | 200000 × 0.005 ÷ (1 − 1.005^−180) | 1,687.713656 |
How to check the result
Down payment reduces principal before the payment calculation. The result excludes insurance, property taxes and other charges; use actual offer figures when comparing.
Mortgage payment calculator: interest, down payment and term
Subtract the down payment from the property price to obtain the financed principal. For a fixed-rate amortizing loan, divide the annual interest rate by twelve and use the number of monthly installments to compute the payment. A longer term can lower the payment while increasing interest paid.
- 200,000 principal at 6% for 30 years: 200000 × (0.06/12) ÷ (1 − (1+0.06/12)^(-360)) = ≈ 1199.10
- 300,000 principal at 5% for 20 years: 300000 × (0.05/12) ÷ (1 − (1+0.05/12)^(-240)) = ≈ 1979.87
- 100,000 principal at 4% for 15 years: 100000 × (0.04/12) ÷ (1 − (1+0.04/12)^(-180)) = ≈ 739.69
Important consideration
Illustrations exclude taxes, insurance, transaction fees and variable-rate changes. Real mortgage products and financing terms differ; check the official repayment schedule and contractual charges.
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Frequently asked questions
Does a larger down payment reduce the payment?
Usually yes. A larger down payment reduces the amount financed, which generally lowers both the monthly payment and total interest.
Is this the full monthly cost of owning a home?
No. It estimates the core loan payment only; taxes, insurance and other property costs may be additional.
What happens with a shorter mortgage term?
The monthly payment usually rises, but total interest normally falls because the balance is repaid faster.
How is the fixed mortgage payment calculated?
P is price minus down payment, r is annual percentage rate divided by 100 and 12, and n is years times 12. Payment = P×r/(1−(1+r)^−n). At zero interest, payment is P/n.
Should I enter the loan interest rate or a rate including fees?
Enter the nominal annual interest rate used to calculate payments. Do not automatically substitute a fee-inclusive rate: this tool does not model fees as cash flows. Check the lender’s offer details.