Mortgage Calculator 2026
Calculate your monthly mortgage payment, total interest, total housing cost and full amortization schedule. Works for Canada, USA, UK, Australia and any country worldwide.
Mortgage Details
Optional — add your monthly carrying costs to see your total housing payment and GDS ratio. Lenders look at all of these when qualifying you.
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How It Works
A mortgage payment is built from three pieces, the amount you are borrowing, the interest rate charged on that balance, and the length of time you have to pay it back, known as the amortization period. Because interest is applied to whatever balance remains, each payment is split between interest owed for that period and a portion that goes toward reducing what you actually owe. Early payments lean heavily toward interest since the balance is still high, and later payments lean more toward principal as the balance shrinks.
Compounding frequency changes the math slightly depending on where you live. Canadian mortgages are required by law to compound semi-annually, so this calculator automatically switches to that method the moment you select Canada, converting the quoted annual rate into the correct periodic rate before running the payment formula. The USA, UK, and Australia compound monthly instead, and if you choose Worldwide, you can enter the rate exactly as quoted by your own lender.
When you open the Advanced section and fill in property tax, condo or HOA fees, heating and utilities, and home insurance, those monthly figures are added to your mortgage payment to produce your total monthly housing cost. That total is then compared against an estimated gross monthly income to produce your GDS ratio, giving you the same percentage a lender looks at when deciding whether you qualify for the loan.
Frequently Asked Questions
How is a mortgage payment calculated? A mortgage payment is calculated using the loan principal, the interest rate, and the amortization period. The formula accounts for compounding so that each payment covers the interest owed for that period plus a portion of the principal, with the split between the two shifting gradually over the life of the loan.
What is the GDS ratio? GDS stands for Gross Debt Service, and it is the percentage of your gross monthly income required to cover your housing costs, including your mortgage payment, property tax, heating, and condo or HOA fees. Canadian lenders generally look for a GDS ratio of 39 percent or less, while the equivalent measure in the USA is usually called the front-end ratio and typically caps closer to 28 percent.
What is included in total monthly housing cost? Total monthly housing cost includes your mortgage payment plus property tax, heating and utilities, condo or HOA fees, and home insurance. Fill in the Advanced section with these amounts to see a complete picture of what you will actually pay each month, rather than just the mortgage payment on its own.
Can I use this calculator if I am not in Canada, USA, UK, or Australia? Yes. Select the Worldwide option and enter the interest rate quoted by your own lender. The calculator will apply monthly compounding and produce the same full set of results, payment, interest, housing cost, and amortization schedule, for any country and any currency.
What is the difference between amortization period and mortgage term? The amortization period is the total number of years it will take to pay off the loan, often 20 to 30 years. The term is the length of your current rate agreement, typically 1 to 5 years in Canada, and when it ends you renew, often at a different rate than you started with. Our mortgage renewal calculator can show you what that change would mean for your payment.
Why does Canada use semi-annual compounding while other countries use monthly? Canadian law requires mortgage interest to be compounded semi-annually rather than monthly, a rule that goes back decades and is unique to Canada among the countries covered here. This is why the same quoted rate can produce a slightly different payment depending on which country you select, and why this calculator switches methods automatically based on your choice.
What You Need to Know
Buying a home is one of the biggest financial decisions most people will ever make, and this calculator is meant to give you a realistic starting point rather than a final number. Lenders factor in your credit history, other debts, and their own internal qualifying rules, so the payment shown here is something to plan around rather than a guaranteed approval amount.
It is worth budgeting for costs beyond what this calculator captures as well. Closing costs, legal fees, moving expenses, and ongoing maintenance are not part of the payment or GDS calculation, and new homeowners are often surprised by how quickly those add up in the first year. Keeping some room below your maximum GDS ratio, rather than borrowing right up to the limit, gives you a cushion for these extra costs and for whatever changes come along in your income or expenses down the road.
If you already have a mortgage and your term is coming up for renewal, it is worth checking our mortgage renewal calculator well before your renewal date. Rates can move meaningfully between when you first took out your mortgage and when your term ends, and knowing what a new rate would do to your payment ahead of time makes that conversation with your lender or broker far less stressful.
If you are buying for the first time, our blog post on what first-time home buyers need to know before talking to a lender walks through the pre-approval process, credit checks, and a few costs that catch new buyers off guard, worth a read before your first meeting with a lender or broker.
This calculator is provided for general educational purposes and gives estimates only. Actual mortgage terms, rates, and qualification requirements vary by lender and by country, so please speak with a licensed mortgage broker, bank representative, or financial advisor before making any borrowing decisions.