Home Loan Calculator — Mortgage Payment & Amortisation
Enter the home price, down payment, interest rate and term to get your monthly payment, total interest, and a graph of the remaining balance over time.
%
%
years
Principal and interest only — excludes property tax, insurance and HOA
728,142
total repaidPrincipal
43.9%
Total interest
56.1%
- 1
Down payment
400,000 × 20% = 80,000 - 2
Loan amount
400,000 − 80,000 = 320,000 - 3
Monthly rate
6.5% ÷ 12 ÷ 100 = 0.005417 - 4
Growth factor
(1 + 0.005417)ⁿ = 6.9918n = years × 12 monthly payments. - 5
Monthly payment
320,000 × 0.005417 × 6.9918 ÷ (6.9918 − 1) = 2,022.62
How does this calculator work?
Monthly home loan payment = (home price − down payment) × r × (1+r)ⁿ ÷ ((1+r)ⁿ − 1), where r is the monthly rate and n is the total number of payments. Enter the home price, down payment %, annual rate and term to get your monthly payment and total interest. Excludes taxes, insurance and PMI.
Formula
How this is calculated
A home loan (residential mortgage) is repaid through equal monthly instalments that each cover the interest accrued on the remaining balance plus a portion of the principal. The loan amount P is the home price minus the down payment. The monthly payment is found using the standard amortisation formula: P × r × (1+r)ⁿ ÷ ((1+r)ⁿ − 1), where r is the monthly interest rate (annual rate ÷ 12 ÷ 100) and n is the total number of payments (years × 12). Total interest is monthly payment × n − P.
Early in the loan, most of each payment covers interest; gradually more goes toward principal. The remaining-balance curve shows this 'amortisation' graphically — the balance falls slowly at first, then accelerates toward zero. A shorter loan term dramatically reduces total interest (e.g. a 15-year vs 30-year loan at the same rate roughly halves the interest) but raises the monthly payment.
This calculator computes principal and interest only. It excludes property taxes, homeowner's insurance, PMI (required if down payment < 20%), and HOA dues. For a complete monthly budget, add those separately. A down payment below 20% typically triggers PMI at 0.5–1.5% of the loan per year until equity reaches 20%. Figures are estimates; actual lender amounts may differ due to rounding and fee structures.
Frequently asked questions
The home price is what you pay for the property. The loan amount (principal) is the portion you borrow after subtracting the down payment. A 20% down payment on a $400,000 home leaves an $80,000 down payment and a $320,000 loan.
In early payments, most of the fixed monthly payment covers interest on the large remaining balance. As the principal shrinks, less interest accrues each month and more of the payment reduces principal. This is called amortisation. It's why paying even a small amount extra early in the loan saves a disproportionate amount of total interest.
Yes. On a $320,000 loan at 6.5%, a 30-year term costs roughly $408,000 in interest; a 15-year term costs roughly $183,000 — saving about $225,000. The monthly payment rises by about $1,000, but the total cost is nearly halved.
Also known as
TG we-Calculate Editorial Team. (2026). Home Loan Calculator — Mortgage Payment & Amortisation [Online calculator]. TG we-Calculate. https://we-calculate.com/calculator/home-loan-calculator
TG we-Calculate Editorial Team. "Home Loan Calculator — Mortgage Payment & Amortisation." TG we-Calculate. 2026. https://we-calculate.com/calculator/home-loan-calculator.
TG we-Calculate Editorial Team, "Home Loan Calculator — Mortgage Payment & Amortisation," TG we-Calculate, 2026. [Online]. Available: https://we-calculate.com/calculator/home-loan-calculator
@misc{wecalculate_home_loan_calculator, title = {Home Loan Calculator — Mortgage Payment & Amortisation}, author = {{TG we-Calculate Editorial Team}}, howpublished = {\url{https://we-calculate.com/calculator/home-loan-calculator}}, year = {2026}, note = {TG we-Calculate} }
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