Mortgage Calculator – Calculate Monthly Payments (US & Canada)
Calculate mortgage payments with principal, interest, taxes, insurance, and amortization schedules for US and Canadian properties.
Mortgage Calculator (US & Canada)
Calculate mortgage payments with PMI (US) and CMHC (Canada)
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Calculate monthly mortgage payments to determine home affordability and budget
Compare current mortgage with refinance options to evaluate potential savings
Estimate rental property mortgage costs to calculate ROI and cash flow
See how additional principal payments reduce loan term and total interest paid
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US • $350,000
CA • $700,000
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› About this tool · FAQ
Calculate mortgage payments and amortization for U.S. and Canada. Supports monthly, bi-weekly, and accelerated schedules, taxes, insurance, PMI (US), and CMHC (CA). 100% private in your browser.
How is my monthly mortgage payment calculated?
Your monthly payment is calculated using the amortization formula: Payment = P × [i(1+i)^n] / [(1+i)^n - 1], where P is the principal loan amount, i is the monthly interest rate (annual rate ÷ 12), and n is the total number of payments (years × 12). This formula determines your principal and interest payment, which remains constant for a fixed-rate mortgage.
What is PMI and when is it required?
PMI (Private Mortgage Insurance) is required in the U.S. when your down payment is less than 20% of the home price. It protects the lender if you default on the loan. PMI typically costs 0.3% to 1.5% of the original loan amount annually and automatically stops when your loan-to-value ratio reaches 80% (you have 20% equity). For FHA loans, MIP (Mortgage Insurance Premium) works similarly but may last the entire loan term depending on your down payment.
How do I calculate total mortgage interest?
Total interest is calculated by multiplying your monthly payment by the total number of payments (loan term in years × 12), then subtracting the original loan amount. For example, a $300,000 loan at 6.5% for 30 years with a monthly payment of $1,896 results in $682,560 total paid minus $300,000 principal = $382,560 in total interest. Use our calculator to see the exact breakdown for your scenario.
What is the difference between principal and interest?
Principal is the amount you borrowed and must pay back, while interest is the cost of borrowing that money. In your monthly payment, the principal portion reduces your loan balance while the interest portion goes to the lender as profit. Early in your loan, most of each payment goes toward interest; over time, more goes toward principal. This is called amortization.
How does loan term affect total cost?
Longer loan terms (like 30 years) have lower monthly payments but much higher total interest costs. A shorter term (like 15 years) has higher monthly payments but dramatically lower total interest. For example, a $250,000 loan at 6% costs $289,595 in interest over 30 years but only $129,705 over 15 years—a savings of $159,890. However, the 15-year monthly payment is $610 higher.
What is an amortization schedule?
An amortization schedule is a complete table showing every payment over your loan term, breaking down how much of each payment goes to principal vs. interest, and your remaining balance after each payment. It shows how your loan balance decreases over time and helps you understand exactly when you'll be debt-free. Our calculator generates a full amortization schedule you can export to CSV.
How much house can I afford?
Lenders typically use the 28/36 rule: your monthly housing costs (PITI - principal, interest, taxes, insurance) should not exceed 28% of your gross monthly income, and your total debt payments should not exceed 36%. For example, with a $6,000 monthly income, you can afford up to $1,680 for housing and $2,160 for total debt. Use our affordability calculator mode to find your maximum home price based on your income and debts.
What factors affect my mortgage payment?
Five main factors affect your payment: (1) Home price/loan amount - higher price = higher payment, (2) Down payment - larger down payment = lower loan and payment, (3) Interest rate - even 0.5% difference significantly impacts your payment, (4) Loan term - 15 vs 30 years greatly changes monthly cost, and (5) Property taxes, insurance, HOA fees, and PMI - these can add $300-$1,000+ to your monthly payment.
Should I choose a 15-year or 30-year mortgage?
Choose a 15-year mortgage if you can afford higher monthly payments and want to save tens of thousands in interest while building equity faster. Choose a 30-year mortgage if you need lower monthly payments for cash flow flexibility or want to invest the difference elsewhere. The 15-year rate is typically 0.25-0.75% lower than 30-year rates, amplifying your savings. Use our calculator to compare both scenarios with your exact numbers.
How do property taxes impact my monthly payment?
Property taxes are typically escrowed (collected monthly) and paid by your lender on your behalf. For example, if your annual property tax is $4,800, your lender adds $400 to your monthly payment. Property tax rates vary widely by location (0.3% to 2.5%+ of home value annually). A $400,000 home in a 1.2% tax area costs $4,800/year or $400/month. These taxes are included in your total PITI payment.
Can I pay off my mortgage early?
Yes, making extra principal payments can save thousands in interest and shorten your loan term significantly. Even $100-200 extra per month can shave years off your mortgage. For example, adding $200/month to a $300,000 30-year loan at 6.5% saves $77,000 in interest and pays off the loan 6 years early. Our calculator shows the exact impact of prepayments. Check your loan terms for any prepayment penalties (rare on modern mortgages).
What is the 28/36 rule for mortgages?
The 28/36 rule is a lending guideline where your housing costs (mortgage, taxes, insurance, HOA) should not exceed 28% of gross monthly income (front-end ratio), and your total debt payments (housing plus car loans, credit cards, student loans) should not exceed 36% of gross income (back-end ratio). Some programs allow up to 43% back-end ratio. This ensures you can comfortably afford your mortgage without becoming house-poor.
How does down payment percentage affect PMI?
PMI is required when you put down less than 20%. The less you put down, the higher your PMI rate: 5% down typically costs 0.85-1.05% annually in PMI, 10% down costs 0.50-0.75%, and 15% down costs 0.30-0.50%. For a $300,000 loan with 5% down ($15,000), PMI adds about $190-250/month. Once you reach 20% equity through payments or appreciation, PMI automatically ends, lowering your monthly payment.
What are typical closing costs?
Closing costs typically range from 2% to 5% of the home purchase price and include lender fees (origination, underwriting), title insurance, appraisal ($400-800), home inspection ($300-500), escrow/attorney fees, prepaid taxes and insurance, and recording fees. For a $350,000 home, expect $7,000-17,500 in closing costs. These are paid upfront in addition to your down payment. Some costs are negotiable or can be rolled into the loan amount.
How do interest rates affect monthly payments?
Interest rates have a massive impact on affordability. For a $300,000 30-year loan, a 6% rate costs $1,799/month while 7% costs $1,996/month—a $197 monthly difference ($70,920 more over the loan). Just 0.5% (6.0% vs 6.5%) changes your payment by $95/month or $34,200 total. This is why timing your purchase when rates are lower can save enormous amounts. Our calculator lets you compare different rate scenarios instantly.
How is Canadian interest calculated?
Canadian mortgages commonly quote a nominal annual rate compounded semi-annually by law, unlike U.S. mortgages which use monthly compounding. We convert the Canadian rate to an effective per-payment rate for monthly, bi-weekly, or weekly schedules using the formula: i_effective = [(1 + r/2)^2]^(1/n) - 1, where r is the annual rate and n is payments per year. This means a 5% Canadian rate is slightly different than a 5% U.S. rate.
What is accelerated bi-weekly?
Accelerated bi-weekly takes your monthly payment, divides by 2, and pays that amount every two weeks (26 times per year). Since 26 half-payments = 13 full monthly payments, you make one extra monthly payment per year. This pays off your mortgage faster and saves significant interest. For example, a $300,000 30-year mortgage at 6.5% paid accelerated bi-weekly is paid off in 24 years, saving $67,000 in interest compared to regular monthly payments.
What are GDS/TDS and DTI and how are they used?
In Canada, GDS (Gross Debt Service) and TDS (Total Debt Service) limit your housing costs (PITH) and total debts as a share of gross income. Typical limits are 39%/44%. In the U.S., lenders use DTI ratios (front-end/back-end), often 28%/36% or up to 43% depending on program. The affordability mode uses these to estimate a maximum payment and price based on your income and existing debts.
How is CMHC premium handled?
In Canada, CMHC (Canada Mortgage and Housing Corporation) insurance is required when your down payment is less than 20%. The premium is a one-time upfront cost based on your loan-to-value ratio: 5-9.99% down = 4.00% premium, 10-14.99% down = 3.10%, 15-19.99% down = 2.80%. This premium is typically added to (financed into) your mortgage principal. For a $380,000 loan with 10% down, the 3.10% CMHC premium ($11,780) increases your loan to $391,780.