Understanding a mortgage payment estimate
The amount financed is the property price minus the down payment. This form calculates a fixed monthly principal-and-interest payment from that balance, the annual rate and the term.
A household housing budget also needs taxes, insurance and any association or lender charges. Those costs are excluded here. Use this estimate to compare the mathematical effect of a different down payment or interest rate.
What is this calculator?
Estimate monthly mortgage principal and interest after subtracting the down payment from the property price.
What can you use it for?
Use this tool to compare a financial scenario using the assumptions you control. Estimate monthly mortgage principal and interest after subtracting the down payment from the property price.
How to use it
- Enter property price.
- Enter down payment.
- Enter annual rate (%).
- Enter term (years).
- Select Calculate (or Generate for random tools).
- Read the answer and any additional results below the form. Check the units and the limits of the method.
Formula and method
M = P × r ÷ [1 − (1 + r)^(-n)]
The down payment is removed before calculating fixed monthly principal and interest.
Worked example
Property price: 15000000, Down payment: 3000000, Annual rate (%): 10, Term (years): 20. The result is 115,802.59740888 (monthly principal & interest).
Assumptions and limits
This is a mathematical estimate using the values you enter. Confirm real product terms, fees, tax rules and dates before acting on it.
Frequently asked questions
Does this include property tax and insurance?
This calculator estimates fixed monthly principal and interest after subtracting your down payment. Property taxes, insurance, PMI, HOA charges and extra payments are not included in this form. Budget for those separately.
What happens at a zero interest rate?
The principal is divided by the number of monthly payments. A loan of 120,000 over 10 years at 0% gives 1,000 per month before other costs.
What inputs does the Mortgage Calculator need?
Use property price, down payment, annual rate (%), term (years). Read the answer and any additional results below the form. Check the units and the limits of the method.
What assumptions apply to the Mortgage Calculator?
This is a mathematical estimate using the values you enter. Confirm real product terms, fees, tax rules and dates before acting on it.