About this tool
The repayment uses the standard formula for a fixed-rate mortgage with monthly payments. On top of it, the calculator adds a twelfth of the yearly property tax and home insurance, any monthly fees, and private mortgage insurance (PMI) while the loan is more than 80% of the home price.
It works for any country: choose your currency and leave out what does not apply. In the US, property tax, insurance and PMI are often collected with the payment ("PITI"). In the UK, Canada, Australia and the Gulf, mortgages are usually repaid on the same formula but tax and insurance are paid separately, so set them to 0 to see the lender's payment only.
Overpaying even a small amount each month shortens the loan and saves interest, because interest is charged on the remaining balance. Check whether your lender limits overpayments or charges early repayment fees.
Good to know
- Fixed rate for the whole term; variable and tracker rates change over time.
- PMI is estimated as a yearly percentage and assumed to stop at 80% loan-to-value; real policies vary.
- Closing costs, stamp duty and land transfer taxes are not included.
- For information only; not financial advice.