When to use this calculator
Estimate principal-and-interest payments on a fixed-rate mortgage. Excludes taxes, insurance, maintenance and lender fees. A deposit cannot exceed the property price.
Explore the mortgage & property calculators for other questions in this topic. For a related calculation, use the Net Rental Yield Calculator: Estimate rental yield after entered annual operating expenses.
Budget beyond principal and interest
The difference between property price and deposit is the financed principal. This calculator estimates the repayment of that principal and interest, not the complete cost of owning the home. Property taxes, insurance, service charges and maintenance need a separate budget. Compare overpayments using the dedicated overpayment tool.
PUTTING IT INTO PRACTICE
Mortgage Payment: a worked example
The values below are an illustrative example, not a recommendation. Replace them with measurements or assumptions that match your question.
| Input | Example value |
|---|---|
| Property price | 300,000 |
| Deposit | 60,000 |
| Annual nominal rate (%) | 5 |
| Term (years) | 25 |
| Result | 1,403.0161 per month |
- Check the input labels and enter the example values above.
- Apply the relationship: Loan = price − deposit; payment = Lm/(1 − (1+m)^(-12y)).
- The result is 1,403.0161 per month, rounded for display.
How to interpret your result
Excludes taxes, insurance, maintenance and lender fees. A deposit cannot exceed the property price.
Separate property price, deposit and financed amount. Gross rental yield excludes operating expenses, whereas net yield depends on the costs you include. Equity is an estimated asset value rather than immediately available cash.
Frequently asked questions
Can I use this for a variable-rate mortgage?
You can model one rate scenario, but the result assumes that rate stays constant. Recalculate different rate scenarios rather than treating one payment as a forecast for the whole term.
Are rental yield and property return the same?
No. Yield measures rental income relative to a property value or cost. Total return can also include changes in value and transaction costs.
How do I use the mortgage payment calculator?
Enter property price, deposit, annual nominal rate (%), term (years). The result updates automatically. Use the units shown beside each input; the example values illustrate the method.
Which formula does this calculator use?
Loan = price − deposit; payment = Lm/(1 − (1+m)^(-12y)).
What should I check before using the result?
Excludes taxes, insurance, maintenance and lender fees. A deposit cannot exceed the property price.
How are results rounded?
Scalar numbers display up to six decimal places, with scientific notation for very large or small values. Text, fraction, date and schedule outputs use the format described on the tool. Intermediate calculations use JavaScript floating-point arithmetic. Keep sensible precision for your measurements.
Further reading
For background on this topic, see CFPB: mortgage payment components ↗. This is a topic reference, not an external review or endorsement of this tool.
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