Mortgage Calculator
Calculate your monthly mortgage payment including taxes and insurance
Enter values to see results
Fill in the form and click Calculate
How to Use This Calculator
Enter the home price, your down payment amount, loan term, and interest rate. Optionally add property taxes, homeowners insurance, PMI, and HOA fees to see your complete monthly housing cost. The calculator shows your total monthly payment and how much you will pay in interest over the life of the loan.
Understanding Your Mortgage Payment
Your monthly mortgage payment consists of several components, often called PITI:
- Principal: The portion that pays down your loan balance
- Interest: The cost of borrowing money
- Taxes: Property taxes paid through escrow
- Insurance: Homeowners insurance and possibly PMI
The Mortgage Payment Formula
M = P × [r(1+r)n] / [(1+r)n - 1]
- M = Monthly payment
- P = Principal (loan amount)
- r = Monthly interest rate (annual rate ÷ 12)
- n = Number of payments (years × 12)
Example Calculation
For a $400,000 home with 20% down ($80,000), a 30-year loan at 6.5% interest:
- Loan Amount: $320,000
- Principal & Interest: $2,022/month
- Total Interest Over 30 Years: $407,969
Canadian Mortgage Example: $500K at 5.5% over 25 Years
Canadian mortgages commonly use a 25-year amortization period (the maximum for insured mortgages with less than 20% down). Here is a worked example for a $625,000 home with 20% down ($125,000):
- Loan Amount: $500,000
- Interest Rate: 5.5% (annual)
- Amortization: 25 years (300 months)
- Monthly Payment (P&I): ≈ $3,070
- Total Interest Over 25 Years: ≈ $421,000
- Total Cost: ≈ $921,000
Approximate remaining balance at key milestones:
| Year | Remaining Balance | Equity (from purchase) |
|---|---|---|
| Year 1 | ≈ $490,700 | ≈ $134,300 |
| Year 5 | ≈ $446,400 | ≈ $178,600 |
| Year 10 | ≈ $375,800 | ≈ $249,200 |
| Year 15 | ≈ $283,000 | ≈ $342,000 |
| Year 20 | ≈ $161,000 | ≈ $464,000 |
| Year 25 | $0 | $625,000 (full) |
Equity column assumes no change in property value. Use the calculator above for your exact numbers.
Canadian vs. US Mortgage Structures
Mortgages in Canada work differently from the standard US 30-year fixed-rate model in two important ways:
| Feature | Canada | United States |
|---|---|---|
| Term length | 1–5 years (then renew) | Up to 30 years fixed |
| Amortization | Up to 25 yrs (insured); 30 yrs (uninsured) | Up to 30 years |
| Interest compounding | Semi-annually (by law) | Monthly |
| Minimum down payment | 5% (under $500K); tiered above | 3.5% (FHA); 20% conventional to avoid PMI |
| Mortgage insurance | CMHC if down < 20% | PMI if down < 20% |
| Prepayment penalties | Common (IRD or 3-month interest) | Less common on fixed-rate |
Key Canadian difference: Because Canadian mortgages use semi-annual compounding, the effective monthly rate is slightly lower than dividing the annual rate by 12. This calculator uses monthly compounding (the US standard); Canadian borrowers will see marginally lower actual payments from their lender due to semi-annual compounding. If you break your Canadian mortgage early, use our Canadian mortgage penalty calculator to estimate the prepayment charge.
Frequently Asked Questions
How much house can I afford?
A common rule is that your monthly housing costs should not exceed 28% of your gross monthly income. This includes mortgage payment, property taxes, and insurance. Lenders also consider your total debt-to-income ratio.
What is PMI and when do I need it?
Private Mortgage Insurance (PMI) is required when your down payment is less than 20% of the home price. PMI protects the lender if you default on the loan. You can request to remove PMI once you have 20% equity.
Should I get a 15-year or 30-year mortgage?
A 15-year mortgage has higher monthly payments but lower total interest. A 30-year mortgage has lower monthly payments but you pay more interest over time. Choose based on your monthly budget and financial goals.
What affects my mortgage interest rate?
Your credit score, down payment size, loan amount, loan type, and market conditions all affect your rate. A higher credit score and larger down payment typically result in a lower interest rate.