Home Loan Calculator

The number most buyers fixate on is the interest rate. The number that usually moves the monthly payment more is the down payment, because it sets both the principal and the loan-to-value ratio that the lender prices against.

Two identical houses, two down payments

Take a 400,000 property at 6.5% over 30 years.

The extra 40,000 up front buys a 252.83 reduction every month and removes 51,017.80 of interest across the term. It also drops the LTV to 80%, the threshold above which many lenders require mortgage insurance and price the rate itself a notch higher. This calculator reports LTV as a result row for exactly that reason.

What the loan-to-value figure is telling you

LTV is the borrowed amount divided by the property value. At 90% you own a tenth of the house on paper, which is thin enough that a modest fall in local prices leaves you in negative equity and unable to remortgage. At 80% you have a buffer, and you are usually on the better side of the lender's pricing grid.

The tool computes LTV from the value you enter, not from a surveyor's valuation. If the lender's valuer comes in below the agreed price, your real LTV is worse than the figure shown here.

The payment schedule behind the monthly number

Underneath the result is a year-by-year amortisation table, expandable into individual months and exportable as a PDF. On the 320,000 loan, month one splits 1,733.33 to interest and 289.28 to principal. Principal does not overtake interest until month 233 — nineteen and a half years in. A thirty-year mortgage spends most of its life paying for the privilege of the loan rather than reducing it.

What is deliberately not in this number

The monthly figure here is principal and interest only. Nothing else. In practice your outgoing will be materially larger:

• Property tax, buildings insurance, and any mortgage insurance are excluded. Where a lender escrows these, they land in the same monthly debit and can add a quarter again to the payment.
• Stamp duty, registration, legal fees, and survey costs are one-off charges outside the loan entirely.
• Service charges, ground rent, and maintenance on the property are not financing costs and are not modelled.
• The rate is held flat for the whole term. A tracker or a two-year fix will not behave this way.

Treat the output as a screening figure for comparing offers and testing how much house you can carry. Once you have a decision in principle, the lender's illustration is the document that binds, and it will include the fees this page leaves out.

Other pages worth opening

For a generic reducing-balance loan without the property-specific fields, use the EMI calculator. To see what the deposit you are saving might grow to first, try the SIP calculator, and to check what the same monthly figure will feel like in fifteen years, run it through the inflation calculator.