Calculate your monthly mortgage repayment, total interest cost, and full amortization schedule based on home price, deposit, and interest rate.
Calculate your monthly mortgage repayment based on home price, deposit, interest rate, and loan term.
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This calculator uses the standard amortization formula to compute your monthly payment. The formula accounts for the compounding of interest monthly over the full loan term.
A common rule of thumb is to aim for a deposit of at least 20% of the home price — this typically allows you to avoid mortgage insurance and access better interest rates from lenders.
Use the amortization schedule to see exactly how much of each payment goes toward reducing the principal versus paying interest. In the early years of a mortgage, most of your payment goes toward interest rather than building equity.
A mortgage is simply a large, long-term loan secured against a property. Because the amount is big and the term is often 20 to 30 years, small differences in the interest rate or term translate into very large differences in what you ultimately pay. This calculator shows your monthly repayment, the total interest over the full term, and a month-by-month amortisation schedule.
The monthly figure is calculated with the standard amortising formula: your rate and term are fixed, and the payment is set so the loan reaches zero on the final month. In the early years the balance is high, so most of each payment covers interest and only a little reduces what you owe. This reverses over time — which is why building equity feels slow at first and then accelerates.
The size of your deposit matters as much as the rate. A larger deposit means borrowing less, a lower monthly payment, and often access to better interest rates because the lender takes on less risk. Extending the term reduces the monthly payment but adds years of interest; shortening it raises the monthly cost but can save a substantial sum overall. Before committing, it helps to also budget for costs a mortgage payment does not include — rates and taxes, insurance, and maintenance.
Take a $250,000 mortgage over 25 years at 6%. The monthly repayment is about $1,611, and across the full term you would pay roughly $233,000 in interest — nearly as much as the home loan itself. Now increase your deposit so you borrow $225,000 instead: the payment falls to about $1,450 and you save around $23,000 in interest. A bigger deposit and a shorter term are the two most powerful ways to cut the lifetime cost.
Why is so much of my early payment interest?
Interest is charged on the outstanding balance, which is highest at the start. As you pay down the principal, the interest portion shrinks and more of each payment builds equity.
Should I choose a longer or shorter term?
A longer term lowers the monthly payment but increases total interest. A shorter term costs more each month but far less overall. Choose the shortest term whose monthly payment you can comfortably afford.
Does this include taxes and insurance?
No. The calculator shows principal and interest only. Property taxes, homeowner's insurance, and any levies are additional and vary by location.