Enter your home price, down payment, interest rate, and amortization period to instantly see your estimated mortgage payment. Adjust the payment frequency to see monthly, bi-weekly, or weekly payment amounts. Add optional costs like property tax, home insurance, and PMI/CMHC for a complete picture of your true monthly housing cost. Use Advanced Options to model the impact of extra payments on your payoff date and total interest.
The most common guideline is the 28/36 rule: your monthly mortgage payment (principal + interest) should not exceed 28% of your gross monthly income, and your total monthly debt payments should not exceed 36%. For example, with a household income of $8,000/month, aim to keep your mortgage payment under $2,240. Lenders also weigh your credit score, employment history, and existing debts when qualifying you. A stronger credit profile (760+) and a larger down payment typically unlock better interest rates.
A "good" rate is one that's competitive relative to current market conditions. Rates fluctuate based on central bank policy, inflation, and bond yields. Borrowers with excellent credit (760+), a stable income, and a 20%+ down payment tend to qualify for the lowest available rates. Always get quotes from at least three lenders — banks, credit unions, and mortgage brokers — before committing. Even a 0.25% difference in rate can save tens of thousands of dollars over 25–30 years.
Both have trade-offs. A 30-year (or 25-year) mortgage has lower monthly payments, giving you more cash flow flexibility, but you pay significantly more interest over the life of the loan. A 15-year mortgage has higher monthly payments but you build equity much faster and pay far less in total interest — often saving $100,000+ on a large loan. Use the amortization period dropdown above to compare scenarios. If your budget allows, a shorter term is almost always cheaper in the long run.
Your down payment directly reduces your loan principal, which lowers both your monthly payment and the total interest you pay. It also determines whether you need mortgage insurance. In Canada, a down payment below 20% requires CMHC insurance. In the US, conventional loans require PMI when down payment is under 20%. For example, on a $500,000 home at 6.5%: putting 20% down ($100,000) versus 10% ($50,000) reduces your monthly principal and interest payment by roughly $330/month and saves over $100,000 in total interest over 25 years.
Yes — significantly. Extra payments go directly to principal, reducing the balance on which interest is charged. Even an additional $200–$300/month on a $400,000 mortgage at 6.5% can cut 4–5 years off your payoff date and save $50,000–$75,000 in interest. Bi-weekly payments (26 payments/year instead of 12) also effectively make one extra monthly payment per year. Use the Advanced Options section above to model the exact savings for your loan.
Each mortgage payment is split between principal (the amount that reduces your loan balance) and interest (the cost of borrowing). In the early years, the majority of each payment is interest. Over time, as your balance decreases, more of each payment goes toward principal. This is called amortization. If you add optional costs above, your total payment also includes property tax, home insurance, and PMI/CMHC — these don't reduce your loan balance but are often rolled into your monthly payment by the lender or collected in an escrow account.
The standard fixed-rate mortgage payment formula is: M = P · r(1+r)ⁿ / ((1+r)ⁿ − 1), where P is the principal (loan amount), r is the periodic interest rate (annual rate ÷ payment periods per year), and n is the total number of payments (years × payment periods). With a fixed rate, your payment amount stays constant every period, but the split between interest and principal changes with each payment as your balance declines.
The amortization table below the calculator shows every payment broken down into principal paid, interest paid, and remaining balance — year by year or month by month. It's useful for seeing exactly when you'll cross key milestones like 50% equity, or how much interest you've paid by year 5. You can export the full schedule as a CSV to use in your own spreadsheet, or print it as a PDF for your records.
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