Mortgage Calculator
Calculate monthly mortgage payments and interest
How to use Mortgage Calculator
Calculate monthly mortgage payments, total interest and amortization schedule. Adjust rate and term. Free online mortgage tool.
What does a mortgage calculator tell you?
A mortgage calculator computes your monthly payment and total cost of borrowing, helping you understand what you can afford before approaching a lender — and how different terms affect your total interest paid.
- Affordability assessment: Before house hunting, calculate the maximum loan you can service based on your monthly budget. A common guideline is that housing costs should not exceed 28-30% of gross monthly income.
- Comparing loan terms: A 20-year vs 30-year mortgage — the shorter term has higher monthly payments but dramatically less total interest. Calculate both to make an informed decision.
- Overpayment impact: Paying an extra €200/month on a €200,000 mortgage can save years of payments and tens of thousands in interest. Model the impact before deciding.
- Interest rate sensitivity: How much does your payment change if rates rise from 3.5% to 4.5%? Model different scenarios before fixing or floating your rate.
- Refinancing decision: Compare your current mortgage terms with a new offer to calculate when the savings break even against refinancing costs.
The mortgage formula: Monthly payment = P × [r(1+r)^n] / [(1+r)^n − 1], where P = principal, r = monthly rate (annual rate / 12), n = number of payments. A €200,000 loan at 4% for 25 years gives a monthly payment of approximately €1,056.
Frequently Asked Questions
What is amortization?
Amortization is the process of paying off a loan through regular payments. Each payment covers interest on the outstanding balance plus a portion of the principal. Early payments are mostly interest; later payments are mostly principal. An amortization schedule shows this breakdown for every payment.
What is the difference between fixed and variable rate mortgages?
A fixed-rate mortgage has the same interest rate for the entire term — predictable payments, protection against rate rises. A variable (adjustable) rate mortgage tracks a benchmark rate (Euribor, Bank of England base rate) — lower initially but payments can increase if rates rise.
What is LTV (Loan to Value)?
LTV = (loan amount / property value) × 100. A €180,000 mortgage on a €200,000 property = 90% LTV. Lenders offer better rates at lower LTVs (more equity). Most require LTV below 80-90% for standard mortgages; below 60% gets the best rates.
Does paying bi-weekly instead of monthly save money?
Yes — bi-weekly payments (26 per year) are equivalent to 13 monthly payments instead of 12. That one extra payment per year reduces a 25-year mortgage by approximately 3-4 years and saves significant interest.
What costs are not included in the mortgage calculator?
Property taxes, homeowner's insurance, maintenance, HOA fees, and private mortgage insurance (PMI, required when LTV > 80% in the US). The true monthly housing cost is the mortgage payment plus these additional costs.
Mortgage calculator vs loan calculator vs rent vs buy calculator
A mortgage calculator is specifically for property loans with amortization over 15-30 years. A personal loan calculator uses the same formula but for shorter terms (1-7 years) without property collateral. A rent vs buy calculator compares the true cost of renting (including opportunity cost of a down payment) against buying — factoring in appreciation, tax benefits, and transaction costs. For a comprehensive home purchase decision, the rent vs buy comparison is more informative than the mortgage payment alone.