Mortgage Calculators
Mortgage Calculator
Enter the purchase price, deposit, rate and term to see an estimated monthly payment. Property taxes, insurance and association fees are included so the figure reflects the whole housing cost rather than principal and interest alone.
Estimated monthly payment
$2,186.46
- Principal & interest
- $1,769.79
- Property taxes
- $300.00
- Insurance
- $116.67
- Association fees
- $0.00
- Loan amount
- $280,000
- Total interest over the term
- $357,125
- Total repaid
- $637,125
The balance falls slowly at first because early payments are mostly interest.
Amortisation schedule — yearly
| Year | Interest paid | Principal paid | Balance remaining |
|---|---|---|---|
| 1 | $18,108 | $3,130 | $276,870 |
| 2 | $17,898 | $3,339 | $273,531 |
| 3 | $17,675 | $3,563 | $269,968 |
| 4 | $17,436 | $3,801 | $266,167 |
| 5 | $17,181 | $4,056 | $262,111 |
| 6 | $16,910 | $4,328 | $257,783 |
| 7 | $16,620 | $4,618 | $253,165 |
| 8 | $16,311 | $4,927 | $248,239 |
| 9 | $15,981 | $5,257 | $242,982 |
| 10 | $15,629 | $5,609 | $237,373 |
How this calculator works
M = P × r ÷ (1 − (1 + r)^−n)
- M
- the monthly principal and interest payment
- P
- the loan amount — the price minus your down payment
- r
- the monthly interest rate (the annual rate divided by 12)
- n
- the total number of monthly payments (years × 12)
Property taxes, insurance and association fees are added afterwards as monthly amounts. They are not part of the loan formula.
Example calculation
Illustrative example — not advice
If you borrow $280,000 at 6.5% over 30 years
- 01The monthly rate is 6.5% ÷ 12 = 0.5417%.
- 02The number of payments is 30 × 12 = 360.
- 03Applying the formula gives a principal and interest payment of about $1,770.
About $1,770 a month in principal and interest, or roughly $2,187 once taxes and insurance are added.
Roughly three quarters of the early payments go to interest. That share falls each month as the balance reduces. This is an illustrative example, not a quote or a recommendation.
Important considerations
- Lenders assess affordability on your total housing cost, not principal and interest alone.
- Property taxes and insurance premiums change over time, so the escrow portion of your payment will move.
- A deposit below 20% usually triggers mortgage insurance, which this calculator does not include.
- Fees, points and closing costs affect the true cost of borrowing and are excluded here.
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- Mortgage Affordability CalculatorHow much house your income and debts realistically support.
Terms used here
Frequently asked questions
Does this include mortgage insurance?
No. If your down payment is under 20% of the price, most lenders add private mortgage insurance, typically a few hundred dollars a month. Add it separately when comparing offers.
Why is so much of the early payment interest?
Interest is charged on the outstanding balance, which is at its highest at the start. As the balance falls the interest portion shrinks and the principal portion grows, even though the payment stays level.
Can I use this for a refinance?
Yes. Enter the balance you would refinance as the home price and leave the down payment at zero to see the new payment on that balance.
Disclaimer
Legamoney calculators are educational tools. Results are estimates based on the figures you enter and do not constitute financial, tax or legal advice.
Last reviewed 2026-08-01