Mortgage Calculator - US and UK Monthly Payment
Choose US or UK, enter your loan, interest rate and term, and see your estimated monthly payment, total interest and total loan cost. A full amortization schedule shows how much of each payment goes to principal and how much to interest. Free, no signup, and it runs in your browser.
These results are estimates and not financial advice.
Mortgage Calculator
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What is a Mortgage Calculator?
A mortgage calculator estimates what a home loan will cost you. You tell it how much you want to borrow, the yearly interest rate and how many years you will take to repay, and it works out your monthly payment. It also shows how much interest you would pay over the whole loan and how the balance goes down over time.
This tool is built for both the US and the UK. The two markets use different words and have different extra costs: the US talks about a down payment and property tax, while the UK talks about a deposit and Stamp Duty. The country toggle shows the fields that fit your market.
How to Use the Mortgage Calculator
- Choose your country, US or UK.
- Enter the loan amount, or enter the property price and your down payment (US) or deposit (UK) and let the loan amount follow.
- Enter the yearly interest rate in percent.
- Enter the loan term in years.
- In US mode you can add property tax. In UK mode you can add Stamp Duty.
- Click Calculate.
- Read your Monthly Payment, Total Interest Paid and Total Loan Cost, then look at the amortization schedule.
Try different interest rates, terms and down payments to see how each one changes your result.
What You See on the Page
| Item | Meaning |
|---|---|
| Monthly Payment | The estimated amount you pay each month on the loan, covering principal and interest |
| Total Interest Paid | All the interest you would pay over the full term |
| Total Loan Cost | All your payments added together: the amount borrowed plus all the interest |
| Amortization schedule | A table or chart that splits each payment into principal and interest and shows the remaining balance |
| Down payment / deposit | The part of the property price that you pay yourself |
| Property tax (US) | A yearly local tax on the property |
| Stamp Duty (UK) | A one-time tax paid when buying a home above a certain price |
The Mortgage Payment Formula
The calculator uses the standard formula for a loan that is repaid in equal monthly instalments, with interest charged on the balance that is still owed:
M = P x [ r (1 + r)^n ] / [ (1 + r)^n - 1 ]
M = monthly payment
P = loan amount (principal)
r = monthly interest rate (yearly rate / 12 / 100)
n = number of monthly payments (years x 12)If the interest rate is 0 percent, the monthly payment is simply the loan amount divided by the number of months.
Mortgage Calculation Examples
These examples are for illustration only. The rates are made up and are not today's market rates.
Example 1 (US): $300,000 loan, 6.5% interest, 30 years
| Result | Amount (rounded) |
|---|---|
| Monthly Payment | $1,896.20 |
| Total of all 360 payments (Total Loan Cost) | about $682,633 |
| Total Interest Paid | about $382,633 |
Example 2 (UK): £200,000 loan, 5% interest, 25 years
| Result | Amount (rounded) |
|---|---|
| Monthly Payment | £1,169.18 |
| Total of all 300 payments (Total Loan Cost) | about £350,755 |
| Total Interest Paid | about £150,755 |
How the Amortization Schedule Works
Each month, the interest is worked out on the balance you still owe. The rest of your payment goes to principal and reduces the balance. Because the balance is highest at the start, so is the interest. Here are the first two months of Example 1 ($300,000 at 6.5%, monthly payment $1,896.20):
| Month | Payment | Interest | Principal | Balance after payment |
|---|---|---|---|---|
| 1 | $1,896.20 | $1,625.00 | $271.20 | $299,728.80 |
| 2 | $1,896.20 | $1,623.53 | $272.67 | $299,456.13 |
In month 1, the interest is $300,000 x 6.5% / 12 = $1,625.00, so only $271.20 of the payment reduces the loan. Month by month, the interest part gets a little smaller and the principal part a little bigger, until the balance reaches zero at the end of the term.
Reading the schedule or chart
- Interest portion: The part of each payment that is the cost of borrowing. It is largest at the start.
- Principal portion: The part that reduces what you owe. It grows over time.
- Remaining balance: What you still owe after each payment.
- Monthly or yearly view: The monthly view shows every payment. A yearly view adds up each year so that the trend is easier to see.
US Mortgages: Down Payment and Property Tax
In the US mode, the property price minus your down payment gives the loan amount.
| Property price | Down payment | Loan amount |
|---|---|---|
| $400,000 | 20% = $80,000 | $320,000 |
| $400,000 | 10% = $40,000 | $360,000 |
| $400,000 | 5% = $20,000 | $380,000 |
- Down payment: You can enter it as an amount or as a percentage of the property price.
- Private mortgage insurance (PMI): On many conventional loans, a down payment of less than 20 percent means paying PMI, which protects the lender. It is an extra monthly cost, and it is not part of the loan payment in this calculator.
- Property tax: This is a yearly tax set by local governments, so it depends on the state, the county and the home value. It can add a lot to the monthly cost of owning a home.
- Other costs: Home insurance and HOA fees are also common in the US, and they are separate from the loan.
- Common terms: 30 years and 15 years are the most common loan terms in the US.
UK Mortgages: Deposit and Stamp Duty
In the UK mode, the property price minus your deposit gives the loan amount. The deposit also decides your loan-to-value (LTV) ratio.
LTV = loan amount / property price x 100
Example: price £250,000, deposit £25,000 (10%)
loan = £225,000, LTV = 90%- Deposit: The same as a US down payment. A larger deposit means a lower LTV, and a lower LTV generally gives access to lower interest rates.
- Stamp Duty: A tax paid once, when you buy a home above a certain price. It is separate from your monthly mortgage payments and usually has to be paid in cash on completion.
- Different rules in each nation: England and Northern Ireland use Stamp Duty Land Tax (SDLT), Scotland uses Land and Buildings Transaction Tax (LBTT) and Wales uses Land Transaction Tax (LTT). Rates, thresholds and reliefs, such as those for first-time buyers or for additional homes, are different and change from time to time. Check the official government website for the current rules before you rely on any figure.
- Common terms: 25 years is a very common term in the UK, but shorter and longer terms are available.
- Rate changes: Many UK mortgages have a fixed rate for two or five years and then move to a different rate. This calculator uses one rate for the whole term.
US vs UK Mortgage Terms
| Topic | United States | United Kingdom |
|---|---|---|
| Your own contribution | Down payment | Deposit |
| Purchase tax | Usually no national equivalent. Some states and cities charge transfer or recording taxes | Stamp Duty Land Tax (England and Northern Ireland), LBTT (Scotland), LTT (Wales) |
| Yearly property tax | Property tax set by local governments | Council Tax is paid by the occupier. It is not part of the mortgage |
| Common term | 30 or 15 years | Often 25 years |
| How the rate works | Fixed for the whole term is common, adjustable-rate loans also exist | Often a fixed or tracker rate for an initial period, then a different rate |
| Extra insurance linked to a small down payment | PMI on many conventional loans below 20% down | Handled through the lender's pricing and the LTV band |
Details vary by lender and over time, so use this table as a general guide only.
Repayment vs Interest-Only (UK)
In the UK, you will also meet interest-only mortgages. With a repayment mortgage, each payment covers interest and also reduces the loan, so the loan is fully paid at the end of the term. With an interest-only mortgage, you pay only the interest each month and the full loan is still due at the end, so you need a separate plan to repay it. This calculator is based on the repayment method.
| Type | Monthly payment on £200,000 at 5% | At the end of the term |
|---|---|---|
| Repayment (25 years) | £1,169.18 | The loan is fully repaid |
| Interest-only | £833.33 | You still owe £200,000 |
The lower monthly payment of interest-only can look attractive, but it leaves the whole loan unpaid. Speak to a qualified mortgage adviser about which type suits you.
How the Loan Term Changes Your Cost
| Shorter term | Longer term |
|---|---|
| Higher monthly payment | Lower monthly payment |
| Less total interest | More total interest |
| You build up ownership faster | You build up ownership more slowly |
| Harder on your monthly budget | Easier on your monthly budget, but costs more overall |
Run the calculator with two or three different terms and compare both the monthly payment and the total interest before you choose.
What Else Affects Your Total Cost of Buying
- Interest rate changes: Even a small change in the rate can change your payment and total interest by a lot over many years.
- Insurance: Home insurance is needed in most cases. In the US, PMI may also apply.
- Local taxes and charges: Property tax in the US, Stamp Duty and Council Tax in the UK.
- Fees: Lender fees, valuation, legal or closing costs and surveys.
- Service charges and HOA fees: These apply to many flats, condos and shared buildings.
- Maintenance: Repairs and upkeep are a real cost of owning a home.
- Early repayment charges: Some mortgages charge a fee if you repay or switch early. Check the terms of your deal.
Tips When Using a Mortgage Calculator
- Try several scenarios. Change the rate, the term and the down payment to see what matters most for you.
- Check that your monthly payment fits your budget comfortably, including all the other costs of owning a home and not only the loan payment.
- Compare the total interest, not only the monthly payment.
- Use a realistic rate. Check the rate that a lender would offer you, because it depends on your situation, the deposit and the type of loan.
- Keep some money in reserve for moving, repairs and unexpected costs.
- Check official sources for taxes. Stamp Duty and property tax rules change.
- Get advice for a big decision. A qualified mortgage adviser or your lender can give you exact figures and options.
Common Mistakes
- Looking only at the monthly payment: A long term can look cheap each month but cost much more in total.
- Forgetting other costs: Taxes, insurance, fees and maintenance are not part of the loan payment.
- Using the wrong rate: Enter the yearly rate. Do not enter the monthly rate.
- Mixing up the loan amount and the property price: The loan is the price minus your down payment or deposit.
- Assuming the rate will not change: A fixed period can end and a new rate can apply.
- Expecting an exact lender quote: This tool gives an estimate, and lenders may calculate differently.
- Ignoring Stamp Duty or closing costs when planning your cash: They are paid at purchase, on top of your deposit or down payment.
Privacy and Accuracy
- The calculation is done in your browser, and the numbers you enter are not sent to our server.
- We do not save your loan details or results.
- The results are estimates based on a standard formula with one fixed interest rate. A real lender's figures can be different.
- These results are estimates and not financial advice. We are not a lender, a broker or a financial adviser. For advice on your own situation, speak to a qualified mortgage adviser or your lender.
Frequently Asked Questions
How do I calculate my monthly mortgage payment?
Choose US or UK, enter the loan amount (or the property price and your down payment or deposit), the yearly interest rate and the loan term in years, then click Calculate. The tool uses the standard repayment formula to give your estimated monthly payment, the total interest you would pay and the total cost of the loan.
What is an amortization schedule?
An amortization schedule is a table that lists every payment over the life of the loan and splits it into principal and interest, with the balance that remains after each payment. In the early years most of each payment goes to interest. Over time the share that goes to principal grows.
What does Total Loan Cost mean?
Total Loan Cost is the sum of all the payments you make over the full term, which is the amount you borrowed plus all the interest. It does not include your down payment or deposit, taxes, insurance or fees.
What is the difference between a down payment and a deposit?
They mean the same thing: the part of the property price that you pay yourself instead of borrowing. In the US it is called a down payment, and in the UK it is called a deposit. The loan amount is the property price minus this amount.
How much should I put down or pay as a deposit?
A larger down payment or deposit lowers the loan, the monthly payment and the total interest, and lenders in both countries usually offer better terms for it. In the US, a down payment of less than 20 percent on many conventional loans usually means paying private mortgage insurance (PMI). In the UK, your deposit decides your loan-to-value (LTV) ratio, and a lower LTV generally gets access to lower interest rates. Rules and offers differ between lenders, so check with them.
What is property tax in the US mortgage mode?
Property tax is a yearly tax that local governments in the US charge on real estate. The amount depends on the state, the county and the value of the home, and it can differ a lot from one place to another. The US mode lets you add property tax so that you can see the cost of owning the home more fully. Check the rate for your own area.
What is Stamp Duty in the UK?
Stamp Duty is a tax that buyers pay when they buy a home above a certain price. It is paid once, at purchase, and it is separate from your mortgage payments. The rules differ across the UK: England and Northern Ireland use Stamp Duty Land Tax, Scotland uses Land and Buildings Transaction Tax and Wales uses Land Transaction Tax. Rates, thresholds and reliefs, such as those for first-time buyers or additional homes, change from time to time, so always check the official government website for the current rules.
Is this the exact payment my lender will quote?
No. The result is an estimate. Lenders may calculate interest in a slightly different way, add fees, change the rate after an initial period or require extra products such as insurance. Ask your lender or a qualified mortgage adviser for an exact figure.
Which costs are not included in the result?
The main result is based on the loan itself, which is the principal and the interest. Other costs, such as home insurance, private mortgage insurance, HOA fees, service charges or ground rent, valuation, legal and lender fees, and moving costs, are not part of the loan payment and are not included. Budget for them separately.
How does the loan term change my payment?
A longer term gives a lower monthly payment but more total interest, because you borrow the money for longer. A shorter term gives a higher monthly payment but less total interest. Try different terms in the calculator and compare the results before you decide.
Does the calculator assume a fixed interest rate?
Yes. It uses one interest rate for the whole term. In real life, many UK mortgages have a fixed rate for two or five years and then move to a different rate, and some US loans have an adjustable rate. If your rate will change, your real payments will also change.
Is my information sent to a server?
No. The calculation is done in your browser using JavaScript, and the numbers you enter are not sent to our server.
Is this mortgage calculator free, and is it financial advice?
The tool is free and needs no signup. It gives estimates only and is not financial advice. We are not a lender, a broker or a financial adviser.