Mortgage Calculator (2026) – Monthly Payment Calculator
| Year | Opening Balance | Principal Paid | Interest Paid | Closing Balance | Split |
|---|
| Country | Type | Rate Range | Typical Term | Notes |
|---|---|---|---|---|
| 🇺🇸 USA | 30-Year Fixed | 6.50%–7.25% | 30 years | Most popular mortgage type |
| 🇺🇸 USA | 15-Year Fixed | 5.90%–6.75% | 15 years | Lower rate, higher payment |
| 🇺🇸 USA | 5/1 ARM | 5.50%–6.25% | 30 years | Adjustable after 5 years |
| 🇬🇧 UK | 2-Year Fixed | 4.50%–5.50% | 25 years | Then reverts to SVR |
| 🇬🇧 UK | 5-Year Fixed | 4.25%–5.25% | 25 years | Most popular in 2026 |
| 🇦🇺 Australia | Variable Rate | 6.00%–6.80% | 30 years | Most common type |
| 🇦🇺 Australia | Fixed Rate | 5.75%–6.50% | 30 years | Fixed 1–5 years |
| 🇨🇦 Canada | 5-Year Fixed | 4.75%–5.75% | 25 years | Most popular in Canada |
| 🇨🇦 Canada | Variable Rate | 5.50%–6.25% | 25 years | Linked to Bank of Canada rate |
| 🇮🇳 India (LAP) | Floating Rate | 9.20%–14.50% | 15–20 years | Loan Against Property |
How to Use Mortgage Calculator
Our mortgage calculator works for USA, UK, Australia, Canada and India. Select your country tab to auto-fill typical rates and currency, then customize:
- Property Value — total purchase price of the home
- Down Payment — amount you pay upfront (typically 5–20%)
- Interest Rate — annual mortgage rate from your lender
- Loan Term — 15 or 30 years most common
The calculator shows your monthly payment, total interest, LTV ratio and a year-wise amortization schedule showing how your loan balance reduces over time.
Mortgage Payment Formula
M = Monthly payment
P = Principal loan amount (Property Value – Down Payment)
r = Monthly interest rate = Annual Rate ÷ 12 ÷ 100
n = Total months = Years × 12
Example: $320,000 loan, 6.75%, 30 years:
r = 6.75/12/100 = 0.005625, n = 360
M = $320,000 × [0.005625 × (1.005625)^360] / [(1.005625)^360 – 1]
M = $2,075/month
15-Year vs 30-Year Mortgage — Which is Better?
| Feature | 15-Year Mortgage | 30-Year Mortgage |
|---|---|---|
| Monthly Payment | Higher (~40% more) | Lower (more affordable) |
| Total Interest Paid | Much less (~50% less) | Much more |
| Interest Rate | Lower (0.5–0.75% less) | Higher |
| Build equity | Faster | Slower |
| Cash flow flexibility | Less | More |
| Best for | Higher income, wealth-builders | First-time buyers, tight budget |
Example: $300,000 at 6.75% — 30 years: $1,945/month, total interest $400,200. 15 years: $2,660/month, total interest $178,800. You save $221,400 with 15-year!
How Much Mortgage Can I Afford?
Lenders use two key rules to determine mortgage affordability:
Rule 1: Front-End Ratio (Housing Ratio)
Example: Monthly income $6,000
Max mortgage payment = $6,000 × 28% = $1,680/month
Rule 2: Back-End Ratio (Debt-to-Income)
Includes: mortgage + car loan + credit cards + student loans
Example: Income $6,000 × 43% = $2,580 max total debt payments
Down Payment by Country
| Country | Minimum Down | Recommended | Benefit of 20%+ |
|---|---|---|---|
| 🇺🇸 USA | 3–5% (FHA 3.5%) | 20% | No PMI (private mortgage insurance) |
| 🇬🇧 UK | 5–10% | 25%+ | Best rates available |
| 🇦🇺 Australia | 5% | 20% | No LMI (lenders mortgage insurance) |
| 🇨🇦 Canada | 5% (under $500K) | 20% | No CMHC insurance |
| 🇮🇳 India | 25–40% equity | 40%+ | Lower interest rate |
Types of Mortgages Explained
Fixed Rate Mortgage
Interest rate stays the same for the entire loan term. Monthly payment never changes. Best for: long-term planning, when rates are low. Popular in USA (30-year fixed), Canada (5-year fixed).
Variable / Adjustable Rate Mortgage (ARM)
Interest rate changes with market rates (typically linked to central bank rate). Usually lower initially. Best for: short-term ownership plans, when rates expected to fall. Popular in Australia, UK.
Interest-Only Mortgage
Pay only interest for initial period (5–10 years), then principal + interest. Lower initial payments but no equity building. Higher risk.
Offset Mortgage (UK/Australia)
Savings balance offsets mortgage balance for interest calculation. E.g., $300K mortgage – $50K savings = interest on $250K only. Great for people with significant savings.
Loan Against Property / LAP (India)
Secured loan against existing property you own. Not for buying new property. Rate 9.2–14.5%. Use for business, education, medical needs. See our Mortgage Loan EMI Calculator for India-specific calculations.