Mortgage Calculator
Built for US & UK Buyers

Your monthly payment is calculated using the standard amortization formula: M = P[r(1+r)^n] / [(1+r)^n–1], where P is the loan principal, r is the monthly interest rate, and n is the total number of payments. On top of principal and interest, lenders often require you to escrow property tax and homeowner's insurance as part of your monthly payment.

A "good" rate depends on your credit score, loan type, and market conditions. In 2026, conventional 30-year fixed rates have generally ranged between 6%–7.5% for well-qualified buyers. FHA and VA loans may offer lower rates. Always compare at least 3 lenders — even a 0.25% difference can save tens of thousands over the life of the loan.

The general rule of thumb is that your monthly housing costs (mortgage + taxes + insurance) should not exceed 28% of your gross monthly income, and total debt payments should stay under 36% (the 28/36 rule). For example, if you earn $7,000/month gross, your housing costs should ideally stay under $1,960/month.

An amortization schedule is a table showing every payment over the life of your loan, broken down into principal and interest. In early years, most of your payment goes toward interest. Over time, more goes toward reducing the principal. This calculator generates a full year-by-year schedule so you can see exactly how your loan balance decreases each year.