Free Online Mortgage Calculator 24/7
Accurate, instant mortgage calculations with charts, amortization, and advanced insights.
Loan Details
Ready to Calculate
Enter your loan details and click "Calculate Mortgage" to see your amortization schedule and payment breakdown.
Our free online mortgage calculator helps you determine your monthly loan payments with precision and ease. Whether you're planning to buy a home in the UAE, United States, United Kingdom, Canada, Australia, India, or any other country, this tool provides accurate calculations for your home loan needs.
Simple 3-Step Process
Enter Your Loan Details
Input property price, down payment, loan term, and interest rate.
Select Interest Type
Choose between reducing balance (standard) or flat interest calculation.
Get Instant Results
View your monthly payment, total interest, and complete amortization schedule with charts.
Example Calculation
For a $300,000 property with $60,000 down payment (20%), 30-year term at 6.5% interest: Your monthly payment would be approximately $1,517, with total interest of $306,012 over the loan lifetime.
Reducing Balance (Standard Amortization)
Reducing balance, also known as diminishing balance or standard amortization, is the most common type of mortgage calculation used globally. With this method, interest is calculated on the remaining loan balance each month. As you make payments, your principal decreases, which means you pay less interest over time while paying more toward the principal.
The formula used is: M = P × r × (1 + r)ⁿ / ((1 + r)ⁿ - 1), where M is the monthly payment, P is the principal, r is the monthly interest rate, and n is the number of payments. This ensures your payment stays constant while the principal-to-interest ratio changes over time.
Example: Reducing Balance
$240,000 loan at 6% for 30 years: First payment splits to $1,199 interest + $240 principal. By year 15, it's $720 interest + $719 principal. Total interest paid: $191,599.
Flat Interest (Fixed Interest)
Flat interest calculates the interest on the original loan amount for the entire loan period, regardless of how much you've paid down. This results in higher total interest paid compared to reducing balance, as interest never decreases even as your balance does. This method is less common for mortgages but may be used in some personal loans or specific financing arrangements.
Example: Flat Interest
Same $240,000 loan: Interest calculated on full $240,000 for all 30 years. Total interest: $432,000 (6% × $240,000 × 30 years), more than double the reducing balance method!
Understanding the difference between these two calculation methods is crucial when comparing loan offers from different lenders, as it can significantly impact your total cost of borrowing.
Making extra payments toward your mortgage principal is one of the most effective strategies to save money on interest and pay off your loan faster. Even small additional payments can lead to significant savings over the life of your loan.
Pro Tip
Extra payments can reduce your total interest significantly! Adding just $200/month to a $240,000 mortgage can save you over $60,000 in interest and shorten your loan by 7+ years.
Our calculator allows you to model different prepayment scenarios with flexible options including one-time payments, monthly extra payments, semi-annual contributions, or yearly lump sums. You can also set start and end dates for your extra payments, giving you complete control over your repayment strategy.
Real Example
$240,000 loan at 6.5% for 30 years. Regular payment: $1,517/month. Add $300 extra monthly → Pay off in 22 years instead of 30, saving $73,242 in interest!
The calculator automatically recalculates your interest savings and shows you exactly how many months earlier you'll pay off your mortgage. This feature is particularly valuable for borrowers in high-interest environments or those who want to become debt-free faster.
An amortization schedule is a complete table showing every payment over the life of your loan. Each row represents a payment period (typically monthly) and shows how much of your payment goes toward principal versus interest, as well as your remaining balance.
Did You Know?
In the first year of a 30-year mortgage, about 90% of your payment goes to interest! By year 15, it's closer to 50/50. Understanding this helps you plan extra payments strategically.
Our mortgage calculator provides both monthly and yearly views of your amortization schedule. The monthly view gives you detailed payment-by-payment information, perfect for understanding your loan progression. The yearly view aggregates payments by year, making it easier to see long-term trends and plan your finances.
Pro Feature
Export your schedule to CSV format! Perfect for financial planning software, tax preparation, or creating custom reports in Excel or Google Sheets.
The interactive charts visualize your payment breakdown, clearly showing how the proportion of principal and interest changes over time. This visual representation helps you understand your mortgage journey at a glance.