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.