MoneyPilot

Mortgage Calculator

Estimate your monthly repayment on a fixed-rate mortgage, including property tax and home insurance, and see exactly how each payment splits between interest and principal.

$
%
%
yrs
%
$

Total monthly payment

$2,659

Loan amount

$336,000

Principal & interest

$2,124

Total interest

$428,549

Total of payments

$764,549

  • Principal & interest: $2,124
  • Property tax: $385
  • Insurance: $150

Remaining balance over time

Amortization schedule (yearly)
YearPrincipalInterestBalance
1$3,756$21,729$332,244
2$4,007$21,478$328,237
3$4,275$21,210$323,962
4$4,562$20,923$319,400
5$4,867$20,618$314,533
6$5,193$20,292$309,340
7$5,541$19,944$303,799
8$5,912$19,573$297,886
9$6,308$19,177$291,578
10$6,731$18,754$284,848
11$7,181$18,304$277,666
12$7,662$17,823$270,004
13$8,175$17,310$261,829
14$8,723$16,762$253,106
15$9,307$16,178$243,799
16$9,930$15,555$233,868
17$10,596$14,889$223,273
18$11,305$14,180$211,968
19$12,062$13,423$199,905
20$12,870$12,615$187,035
21$13,732$11,753$173,303
22$14,652$10,833$158,652
23$15,633$9,852$143,019
24$16,680$8,805$126,339
25$17,797$7,688$108,542
26$18,989$6,496$89,553
27$20,261$5,224$69,293
28$21,617$3,868$47,675
29$23,065$2,420$24,610
30$24,610$875$0

How the mortgage payment is calculated

A fixed-rate mortgage is repaid in equal monthly instalments. Each instalment covers that month's interest first; whatever is left reduces the principal. The standard annuity formula is:

M = P × r(1 + r)ⁿ ÷ [(1 + r)ⁿ − 1]

  • M — monthly principal and interest payment
  • P — loan amount (home price minus down payment)
  • r — monthly interest rate
  • n — total number of monthly payments

In the US and UK, r is the annual rate divided by 12. In Canada, the Interest Act requires fixed-rate mortgages to compound semi-annually, so the monthly rate is (1 + annual/2)^(1/6) − 1. This calculator applies the Canadian rule automatically when Canada is selected.

Worked example

A $300,000 loan at 6% over 30 years with monthly compounding: r = 0.005, n = 360. M = 300,000 × 0.005 × 1.005³⁶⁰ ÷ (1.005³⁶⁰ − 1) ≈ $1,798.65. Over the full term you pay about $347,515 in interest — more than the original loan.

Key terms

Amortization
The schedule by which a loan is paid down over time. Early payments are mostly interest; later payments are mostly principal.
Down payment / deposit
The share of the purchase price you pay upfront. In Canada, under 20% requires CMHC mortgage default insurance; in the US, PMI usually applies below 20%.
Property tax / council tax
Local taxes on your home. US and Canadian property taxes are a percentage of assessed value; UK council tax is banded — enter an approximate equivalent percentage.
Escrow
In the US, lenders often collect tax and insurance monthly alongside your mortgage payment and pay those bills for you.

Frequently asked questions