Home Loan Calculator

Created by Arunangshu DasReviewed Nov 14, 2026

Calculate a home loan's monthly payment, loan-to-value and total cost from price and deposit.

Enter the price, your deposit, the annual rate and the term in years. The payment is principal and interest only.

Loan, monthly payment and cost of the purchase

Enter the purchase and loan terms or load the worked example.

The payment covers principal and interest only. Property taxes, home and mortgage insurance, purchase taxes and fees are not estimated. Loan-to-value uses the price you entered, which can differ from a lender's valuation. The annual rate is a nominal rate charged at one twelfth each month on the balance still owed, with payments at the end of each month and interest rounded to 0.01. A lender's own rounding, day count, compounding convention and first-payment date can change these figures.

Learn how a home loan payment is worked out

Follow the steps from price and deposit to the payment, and see what it leaves out.

Read the home loan guide

Formula and methodology

Loan = price − deposit; payment = loan × r ÷ (1 − (1 + r)^−n), with r = annual rate ÷ 12 ÷ 100 and n = years × 12.

Loan = price − deposit. Loan-to-value = loan ÷ price. The term in years is multiplied by 12 to give the number of monthly payments. The payment then follows the level-payment formula with the annual rate divided by 12, and the calculator reports the smallest payment in steps of 0.01 whose month-by-month ledger clears the loan. Total cost shown = deposit + all loan payments.

Definitions

A home loan, or mortgage, pays the part of a property's price that your deposit does not. The deposit, also called a down payment, comes from your own funds. Loan-to-value is the loan divided by the property's value, here the price you enter. The loan is repaid by a level monthly payment of principal and interest on a reducing balance.

Verified worked examples

Buy at 400,000 with a deposit of 80,000 and borrow at 6% a year for 30 years. The loan is 320,000, which is 80% of the price. The mathematical payment is 1,918.561680, so the payment is 1,918.57. In month 1 interest is 1,600.00 and 318.57 reduces the balance. After 10 years 267,792.93 is still owed. The 360th payment is 1,910.14. Total interest is 370,676.77, loan payments add up to 690,676.77, and deposit plus payments come to 770,676.77.

Interpretation

The monthly figure is principal and interest only; the amount that leaves your account each month is usually higher once property taxes, insurance or service charges are added. Loan-to-value shows how much of the price is borrowed. Total interest is the cost of borrowing under these terms. The chart shows how slowly the balance falls in the early years of a long loan.

Inputs and interpretation

Enter the price you are paying, the deposit from your own funds (0 if none), the annual rate on the reducing balance and the term as a whole number of years. Choose a market for number formatting only.

Assumptions and limitations

A fixed nominal annual rate charged at one twelfth each month for the whole term, equal model months, payments at the end of each month starting one month after the loan is drawn, and no fees, taxes, insurance, prepayments, missed payments or rate changes. Interest is rounded half up to 0.01 each month.

Supported domain and common mistakes

Prices above 0 up to 1 trillion and deposits from 0 to below the price, each with at most 2 decimal places; annual rates from 0% to 100%; terms from 1 to 50 whole years. The calculator does not apply any country's deposit rules, loan-to-value limits or mortgage insurance, and does not estimate what a lender will offer.

Do not read the monthly figure as the whole housing cost. Do not enter the loan amount as the price, or a percentage as the deposit: 20% of 400,000 is entered as 80000. Do not assume the rate stays fixed for the whole term if your loan has a shorter fixed period or a floating rate. Do not treat the entered price as the lender's valuation.

Frequently asked questions

How is the monthly home loan payment calculated?

Subtract the deposit from the price to get the loan P. Divide the annual rate by 12 to get the monthly rate r, and multiply the years by 12 to get n. Payment = P × r ÷ (1 − (1 + r)^−n). The calculator then rounds to the smallest payment in 0.01 steps that clears the loan.

Does the payment include property tax and insurance?

No. It is principal and interest only. Property taxes, home insurance, mortgage insurance, service charges and purchase costs depend on the property, the place and the lender, and the calculator does not estimate them.

What is loan-to-value?

The loan divided by the property's value, as a percentage. A 320,000 loan on a 400,000 price is 80%. The calculator uses the price you enter; a lender uses its own valuation, which can be lower than the price.

Why does a bigger deposit matter?

It reduces the loan, so the payment and total interest both fall. It also lowers loan-to-value, which lenders in many markets use when setting the rate and deciding whether mortgage insurance is required. Those lender decisions are not modeled here.

Can I use it for a floating-rate or fixed-period loan?

Only as a snapshot. The calculator holds one rate for the whole term. If your rate resets after a fixed period or floats with a benchmark, the payment or the term will change when the rate does.

Why is the final payment different from the others?

Each payment is made in whole hundredths and monthly interest is rounded, so small differences build up over the term. The last payment is the balance and interest that remain, so it is usually a little smaller than the others.

Sources and educational scope

Educational arithmetic for a fixed-rate, level-payment home loan. It is not a mortgage offer, an eligibility or affordability assessment, an APR or comparison-rate disclosure, or financial advice. Deposit rules, insurance, taxes, fees and a lender's own rounding and conventions will differ; rely on the lender's documents.

Reviewed 2026-11-14. AI-assisted content under operator editorial responsibility. No independent expert financial review is claimed.