Mortgage Calculator

Use this free Mortgage Calculator to estimate your monthly mortgage payment — including principal, interest, property tax, and insurance. Enter your home price, down payment, interest rate, and loan term to instantly see total interest paid, amortization schedule, and payoff date. No sign-up needed.

Enter a valid home price greater than 0.
Loan Amount: ₹40,00,000
Down payment cannot be 0 or exceed the home price.
Enter a valid interest rate (0.1% – 30%).
Enter a loan term between 1 and 50 years.

Your Mortgage Summary

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Monthly Payment (P&I)
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Principal & Interest
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Total Interest Paid
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Total Payment (P+I)
Loan Assumptions
Payment Breakdown

About This Calculator

What it calculates
Monthly mortgage payment (principal & interest), full PITI payment with optional taxes and insurance, total interest paid, total repayment, and payoff date.
Inputs required
Home price, down payment (amount or %), annual interest rate, loan term (years). Optional: property tax, home insurance, HOA fees, start date.
Formula used
M = P × r × (1+r)^n / ((1+r)^n − 1) — standard amortization formula. P = loan amount, r = monthly rate, n = total months.
Assumptions
Fixed interest rate throughout the term. Property tax and insurance are fixed annual amounts. PMI not included. No prepayment penalties.
Last updated

How Is a Mortgage Payment Calculated?

A monthly mortgage payment consists of two core components: principal (repayment of the loan amount) and interest (the cost of borrowing). Together these are referred to as P&I. If you add property tax and home insurance — which lenders often collect through an escrow account — the full payment is called PITI (Principal, Interest, Taxes, Insurance).

The Mortgage Payment Formula

M = P × r × (1+r)n / ((1+r)n − 1)

  • M = Monthly payment
  • P = Loan amount (home price − down payment)
  • r = Monthly interest rate = annual rate ÷ 12 ÷ 100
  • n = Total number of payments = loan term in years × 12

Worked Example

Home Price: ₹50,00,000 | Down Payment: ₹10,00,000 (20%) | Loan: ₹40,00,000 | Rate: 8.5% | Term: 20 years

  • Monthly rate r = 8.5 ÷ 12 ÷ 100 = 0.007083
  • Payments n = 20 × 12 = 240
  • Monthly P&I = ₹40,00,000 × 0.007083 × (1.007083)^240 / ((1.007083)^240 − 1) ≈ ₹34,722/month
  • Total paid = ₹34,722 × 240 = ₹83,33,280
  • Total interest = ₹83,33,280 − ₹40,00,000 = ₹43,33,280

This calculator handles all of this instantly — use it to compare different home prices, rates, and terms before committing. For information on official housing finance guidelines, refer to the National Housing Bank (NHB) in India.

Understanding Mortgage Amortization

Amortization is the process of paying off a loan through regular fixed payments. Although your monthly payment stays the same throughout the term, the split between principal and interest changes every month — a concept called a front-loaded interest structure.

In the early years, the majority of each payment goes toward interest and only a small portion reduces the loan balance. As the balance falls, less interest accrues, so more of each payment goes toward principal. By the final years, almost all of each payment is principal.

This is why paying extra principal early in the loan has an outsized impact: it prevents all the future interest that would have accrued on that balance. Use the amortization schedule in this calculator to see exactly how your balance declines year by year.

Why Amortization Matters

  • Equity building — you build equity slowly at first, then faster in later years
  • Early payoff savings — refinancing or making extra payments early saves far more interest than doing so later
  • Tax planning — interest paid is often tax-deductible; knowing the split helps with annual tax estimates via the Income Tax Calculator

Impact of Down Payment on Your Mortgage

The size of your down payment is one of the most powerful levers you have when taking a mortgage. A larger down payment directly reduces the loan amount, which lowers both the monthly payment and the total interest paid over the life of the loan.

Down Payment Loan Amount Monthly P&I* Total Interest*
5% (₹2.5L)₹47.5L~₹41,258~₹51.5L
10% (₹5L)₹45L~₹39,089~₹48.8L
20% (₹10L)₹40L~₹34,746~₹43.4L
30% (₹15L)₹35L~₹30,403~₹38.0L

*Based on ₹50L home price, 8.5% interest, 20-year term.

Putting down 20% or more also removes the need for Private Mortgage Insurance (PMI) in most jurisdictions — an additional monthly cost that adds 0.5–1% of the loan amount per year. Use the EMI Calculator to model different loan amounts quickly.

LTV and Why It Matters

Loan-to-Value (LTV) = Loan Amount ÷ Home Price × 100. An LTV of 80% (20% down) is the standard threshold for the best rates and no PMI. Lenders view lower LTV as lower risk and offer more favourable terms. The NHB and RBI-regulated lenders in India typically finance up to 75–90% of property value depending on the loan amount.

15-Year vs 30-Year Mortgage

The loan term is one of the most consequential decisions in your mortgage. Shorter terms come with higher monthly payments but dramatically lower total interest.

Loan Term Monthly P&I* Total Interest* Total Paid*
10 years~₹49,456~₹19.3L~₹59.3L
15 years~₹39,384~₹30.9L~₹70.9L
20 years~₹34,746~₹43.4L~₹83.4L
30 years~₹30,768~₹70.8L~₹1,10.8L

*Based on ₹40L loan at 8.5% interest.

A 10-year mortgage costs ₹51.5L less in total interest than a 30-year mortgage for the same loan — but the monthly payment is ₹18,688 higher. The right choice depends on your cash flow needs and financial goals. Use the Home Loan EMI Calculator to compare specific scenarios. For long-term wealth building alongside your mortgage, consider running a SIP Calculator to see how investing the EMI difference could grow.

Frequently Asked Questions

A mortgage payment is calculated using the amortization formula: M = P × r × (1+r)^n / ((1+r)^n − 1), where P is the loan amount (home price minus down payment), r is the monthly interest rate (annual rate ÷ 12 ÷ 100), and n is the total number of payments (years × 12). This gives the fixed monthly principal and interest. Property tax, insurance, and HOA are added on top.
A full monthly mortgage payment often includes four components called PITI: Principal (reduces your loan balance), Interest (cost of borrowing), Taxes (property tax ÷ 12, collected into escrow), and Insurance (homeowner's insurance ÷ 12). HOA fees and Private Mortgage Insurance (PMI) may also be included.
Amortization is the process of paying off a loan through regular fixed payments over time. Each payment covers both interest and principal. In the early years, most of the payment goes toward interest and very little toward principal. As the loan matures, the split reverses — more goes to principal and less to interest. This is called front-loaded interest.
Yes. While property tax is not technically part of the loan, most lenders collect it as part of your monthly payment and hold it in an escrow account, paying the tax authority on your behalf. For example, if annual property tax is ₹60,000, your lender adds ₹5,000 per month to your mortgage payment. Enter your annual tax in the optional section of this calculator to see the full PITI payment.
A larger down payment reduces the loan amount and therefore the monthly payment and total interest paid. It may also eliminate the need for Private Mortgage Insurance (PMI) if you put down 20% or more. It reduces your LTV ratio, potentially qualifying you for a better interest rate. On a ₹50L home at 8.5% for 20 years, going from 10% to 20% down saves approximately ₹4.6L in total interest.
A 15-year mortgage has higher monthly payments but you pay significantly less total interest — often 40–50% less — and build equity faster. A 30-year mortgage has lower monthly payments, making it easier to qualify and freeing up cash, but you pay far more in total interest. Most financial advisors recommend the 15-year term if you can comfortably afford the higher payment.
In India, home loan rates from regulated lenders typically range from 8% to 10.5% per annum (March 2026). Rates below 8.5% are considered excellent. Your rate depends on your credit score (CIBIL), loan-to-value ratio, income, lender, and whether you choose a fixed or floating rate. A CIBIL score above 750 usually qualifies for the lowest available rates. Check the National Housing Bank for regulated rate guidelines.
LTV = (Loan Amount ÷ Home Price) × 100. A 20% down payment gives an LTV of 80%. Lenders use LTV to assess risk: lower LTV means lower risk. Most lenders prefer LTV of 80% or below to avoid requiring PMI. In India, RBI-regulated lenders typically finance 75–90% of property value depending on the loan size and property type.
Yes. Most mortgages allow early or extra payments. In India, RBI regulations prohibit prepayment penalties on floating-rate home loans. Fixed-rate loans may carry a foreclosure charge of 2–4%. Making extra principal payments early in the loan has an outsized impact because it prevents all future interest on that balance — even small extra payments each month can save years of payments and lakhs in interest. See the Home Loan Part-Payment Calculator to model the savings.
The standard recommendation is 20% down, which eliminates PMI and gives better terms. Many lenders accept 3–10% for first-time buyers. The right amount depends on your financial situation: a higher down payment reduces monthly costs and total interest but depletes liquid savings. Aim to keep 3–6 months of expenses as an emergency fund after the down payment.
The 28% rule states that your monthly mortgage payment (PITI) should not exceed 28% of your gross monthly income. A related rule: total debt payments (mortgage + all other loans) should not exceed 36% of gross income. These rules help ensure you don't overextend yourself. Use the Salary In-Hand Calculator to estimate your net income before applying the rule.
Pre-qualification is an informal estimate of how much you might borrow based on self-reported information — quick but not verified. Pre-approval is a rigorous process where the lender verifies income, assets, and credit score, providing a conditional commitment to lend up to a specific amount. Pre-approval carries more weight with sellers and typically requires pay stubs, bank statements, and tax returns.

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Results are for informational and planning purposes only and do not constitute financial advice. Actual loan terms, rates, and payments will vary by lender and eligibility. Consult a qualified mortgage advisor before making financial decisions.