Mortgage Calculator

Calculate your monthly mortgage payments, total interest, and view detailed amortization schedules. Get accurate results with current mortgage rates for major countries.

Mortgage Calculator

Calculate your monthly mortgage payments with current rates for United States

Country

Loan Amount (USD)

Annual Interest Rate (%)Current rate: 7.12%

Loan Term

How to Calculate Mortgage Payments

Quick Answer: Your monthly mortgage payment is calculated using the loan amount, interest rate, and loan term. For a $400,000 loan at 7.12% for 30 years, your monthly payment would be approximately $2,695.

The calculation uses the standard mortgage payment formula which accounts for compound interest over the life of the loan. Early payments consist mostly of interest, while later payments include more principal.

Mortgage Payment Formula

Understanding how mortgage payments are calculated

The Standard Mortgage Formula

M = P [ r(1 + r)^n ] / [ (1 + r)^n – 1 ]

Where:

M = Monthly mortgage payment
P = Principal loan amount
r = Monthly interest rate (annual rate ÷ 12)
n = Total number of payments (loan term in years × 12)

Step-by-Step Example:

Loan Amount: $400,000

Annual Interest Rate: 7.12%

Loan Term: 30 years

Step 1: Convert annual rate to monthly rate

r = 7.12% ÷ 12 = 0.5933% = 0.005933

Step 2: Calculate total number of payments

n = 30 years × 12 months = 360 payments

Step 3: Apply the formula

M = $400,000 × [0.005933 × (1.005933)^360] / [(1.005933)^360 - 1]

M = $400,000 × 0.006737 = $2,694.98

Current Mortgage Rates by Country

Average mortgage rates as of August 2025

United States

30-year fixed: 7.12%

15-year fixed: 6.81%

5/1 ARM: 6.45%

Canada

30-year fixed: 7.24%

15-year fixed: 6.94%

Variable: 6.70%

United Kingdom

30-year fixed: 6.05%

15-year fixed: 5.75%

Variable: 5.45%

Australia

30-year fixed: 6.59%

15-year fixed: 6.29%

Variable: 6.15%

Germany

30-year fixed: 4.15%

15-year fixed: 3.85%

Variable: 3.65%

France

30-year fixed: 4.05%

15-year fixed: 3.75%

Variable: 3.55%

*Rates shown are current averages and may vary based on credit score, down payment, and lender. Last updated: August 2025.

Frequently Asked Questions

Common questions about mortgage calculations

How is my monthly mortgage payment calculated?

Your monthly mortgage payment is calculated using the standard mortgage formula: M = P [ r(1 + r)^n ] / [ (1 + r)^n – 1 ], where M is the monthly payment, P is the principal loan amount, r is the monthly interest rate (annual rate ÷ 12), and n is the total number of payments (loan term in years × 12).

What's included in my monthly mortgage payment?

The basic mortgage payment includes principal and interest (P&I). However, your total monthly housing payment may also include property taxes, homeowners insurance, private mortgage insurance (PMI), and HOA fees. This calculator shows only the P&I portion.

How accurate are the mortgage rates shown?

The mortgage rates displayed are current average rates for each country, updated regularly. Actual rates may vary based on your credit score, down payment, loan-to-value ratio, and lender. Always check with multiple lenders for personalized quotes.

Should I choose a 15-year or 30-year mortgage?

A 15-year mortgage typically has lower interest rates and saves money on total interest, but has higher monthly payments. A 30-year mortgage has lower monthly payments but costs more in total interest. Choose based on your monthly budget and long-term financial goals.

How much can I afford to borrow?

Most lenders recommend that your total monthly housing costs (including P&I, taxes, insurance) should not exceed 28% of your gross monthly income. Your total debt payments should not exceed 36% of your gross monthly income.

What is an amortization schedule?

An amortization schedule shows how each mortgage payment is split between principal and interest over the life of the loan. Early payments consist mostly of interest, while later payments include more principal as the loan balance decreases.

Can I pay off my mortgage early?

Yes, you can make extra principal payments to pay off your mortgage early. Even small additional payments can save thousands in interest and reduce your loan term by years. Check if your lender charges prepayment penalties.

What affects my mortgage interest rate?

Factors that affect your mortgage rate include your credit score, down payment amount, loan-to-value ratio, debt-to-income ratio, loan term, loan type (conventional, FHA, VA), and current market conditions.