Mortgage calculator

Enter the price, the deposit, the rate and the term, and see the full payment each month with tax, insurance and a schedule to the last payment.

The purchase price of the home.

The share of the price you pay up front.

The nominal rate on the mortgage offer.

The amortization period, often 25 or 30 years.

Settings

Canadian fixed rate mortgages usually compound twice a year.

Optional. Split evenly across the payments of a year.

Optional. The yearly premium for the building and contents cover.

Optional. Goes straight to the balance after the normal payment.

Optional. Puts real dates in the schedule, with payment 1 one period after this date.

Total monthly payment

0.00

Principal, interest, property tax, home insurance and any PMI.

Principal and interest, monthly
0.00
Property tax and home insurance
0.00
Private mortgage insurance
-
Loan amount
0.00
Insurance premium added to the loan
0.00
Total interest
0.00
Total of principal and interest
0.00
Number of payments
0
Final payment date
-
Principal share of the total
0.00%
Interest share of the total
0.00%
With the extra payment the mortgage ends
-

Your data stays in your browser. Nothing is uploaded.

For information only, not financial, tax or legal advice.

Last updated . Method checked . Methodology

This calculator works out what a home loan costs each payment and over its whole life. Enter the home price and the deposit as an amount or a percent, the yearly rate and the term. The result splits the payment into principal and interest, property tax and home insurance, and private mortgage insurance (PMI) while the loan is above 80% of the price. For Canada, a fixed rate can compound twice a year, and a CMHC style premium can be added to the loan. Pick monthly, fortnightly, weekly or accelerated biweekly payments and add an extra payment to see the interest saved. It does not know a lender's fees, closing costs or rate changes, so the figures are an estimate to compare with the offer. Everything runs in your browser and nothing you type is sent anywhere.

How to use the Mortgage Calculator

  1. Enter the home price, choose the currency, and enter the deposit as a percent or an amount.
  2. Enter the yearly rate and the term in years, then pick how often you pay. Tip: Accelerated biweekly pays half the monthly amount every 2 weeks, which adds up to 13 monthly payments a year.
  3. Open the settings to add property tax, home insurance, PMI or a financed premium, and to switch to semi annual compounding for a Canadian fixed rate.
  4. Read the total payment, the split by part and the year by year table, then download the schedule as CSV.

Worked example

A 30 year fixed rate home loan with tax and insurance. All figures are USD.

InputValue
Home priceUSD 300,000.00
Deposit20% (USD 60,000.00)
Yearly interest rate6% compounded monthly
Term30 years (360 monthly payments)
Property tax and home insuranceUSD 3,600.00 and USD 1,200.00 a year
 
Loan = 300,000 - 60,000 = USD 240,000.00, which is 80% of the price, so no PMI applies
Monthly rate r = 6% / 12 = 0.5% = 0.005, number of payments n = 360
(1.005)^360 = 6.022575
Principal and interest = 240,000 x 0.005 x 6.022575 / 5.022575 = USD 1,438.92
Tax and insurance = (3,600 + 1,200) / 12 = USD 400.00 a month
Total monthly payment = 1,438.92 + 400.00 = USD 1,838.92
First month: interest 240,000 x 0.005 = USD 1,200.00, principal USD 238.92, balance USD 239,761.08
Total of principal and interest: 359 payments of USD 1,438.92 plus a final USD 1,440.30 = USD 518,012.58
Total interest = 518,012.58 - 240,000.00 = USD 278,012.58
Total monthly payment
USD 1,838.92
Principal and interest, monthly
USD 1,438.92
Property tax and home insurance
USD 400.00
Loan amount
USD 240,000.00
Total interest
USD 278,012.58
Total of principal and interest
USD 518,012.58
Interest share of the total
53.67%

Interest is rounded to the cent each month, so the last payment is USD 1.38 higher than the others and the balance ends at exactly 0. The textbook total, 360 times the unrounded payment of USD 1,438.921260, is USD 278,011.65 of interest.

How the mortgage payment is calculated

Loan L = price - deposit (+ a financed premium)
Period rate i = r / p, or (1 + r / 2)^(2 / p) - 1 when compounded semi annually
Payment M = L x i x (1 + i)^n / ((1 + i)^n - 1)
Total each period = M + (property tax + home insurance) / p + PMI

Here r is the quoted yearly rate written as a decimal, and p is the number of payments a year: 12, 26 or 52. n is the number of payments over the term. With the standard setting interest compounds with each payment, so the period rate is r / p, the same as the loan calculator: 6% paid monthly uses 0.005. A Canadian fixed rate compounds twice a year, so 5% paid monthly uses (1.025)^(1/6) - 1 = 0.0041239.

The payment is worked out to full precision and rounded once to the cent. Each period, interest is the balance times i, rounded to the cent, and the rest of the payment reduces the balance. The final payment absorbs the rounding so the balance ends at exactly 0. Property tax and home insurance are added as the yearly total divided by p, rounded once.

Accelerated biweekly takes the monthly payment for the same rate and term, halves it, and pays it 26 times a year at the 2 week period rate (r / 26, or (1 + r / 2)^(1/13) - 1 for semi annual). Fortnightly and weekly payments instead use the formula above with 26 or 52 payments a year over the full term.

Private mortgage insurance is the yearly PMI rate times the loan, divided by p. It is charged from the first payment until the payment that brings the balance to 80% of the price, the point where a US borrower may ask to cancel it under the Homeowners Protection Act. With a deposit of 20% or more it is not charged.

A financed premium, such as CMHC mortgage loan insurance in Canada, is the premium percent times the loan. It is added to the loan before the payment is worked out, so it does not appear as a separate line in the payment. CMHC sets the percent by loan to value: 2.80% above 80% up to 85%, 3.10% above 85% up to 90% and 4.00% above 90% up to 95%. The premium is taken as entered. The tool does not check the Canadian minimum down payment, does not stop at the price cap (no insured mortgage at 1.5 million or more), adds no surcharge for an amortization over 25 years, and does not use the 4.50% CMHC rate for a non traditional down payment.

An extra payment goes to the balance after each normal payment. The tool compares the result with the same mortgage without it and shows how many payments and how much interest it saves. A variable rate, fees and closing costs are not modeled.

Frequently asked questions

What does PITI mean on a mortgage?

PITI stands for principal, interest, taxes and insurance, the 4 parts of a typical US housing payment. Principal and interest go to the lender and repay the loan. Property tax and home insurance are often collected by the lender into an escrow account and paid on your behalf. This calculator shows the first 2 as one line and the last 2 as a second line, then adds them into the total.

When does private mortgage insurance stop?

In the US, the Homeowners Protection Act lets a borrower ask the servicer to cancel PMI once the balance is scheduled to fall to 80% of the original value of the home, and the servicer must end it at 78%. The calculator stops PMI at the first payment that brings the balance to 80% of the price and shows how many payments carried it.

Why does a Canadian mortgage use semi annual compounding?

Canadian lenders quote fixed rates compounded twice a year, which section 6 of the Interest Act allows: a blended payment mortgage must state its rate calculated yearly or half yearly, not in advance. A 5% rate then means 2.5% every 6 months, a monthly rate a little below 5% divided by 12. On a CAD 371,160 loan over 25 years the payment is CAD 2,158.69, which is CAD 11.07 less than with monthly compounding.

How much sooner does accelerated biweekly pay off a mortgage?

Paying half the monthly amount every 2 weeks gives 26 half payments a year, the same as 13 monthly payments instead of 12. The extra month each year goes straight to the balance. A CAD 371,160 loan at 5% over 25 years, compounded semi annually, ends after about 21.5 years this way. Ordinary fortnightly payments are worked out over the full term, so they save far less.

What is the CMHC premium and how is it paid?

In Canada a buyer with less than 20% down needs mortgage loan insurance. CMHC charges a one off premium as a percent of the loan, set by the loan to value band, and the lender passes it on, usually by adding it to the mortgage. The calculator adds the premium to the loan, so it is repaid with interest. Provincial sales tax on the premium in Quebec, Ontario and Saskatchewan is paid in cash and is not included.

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