How is the mortgage EMI calculated?

The mortgage EMI is calculated using the loan amount, interest rate, and loan term. The formula is: EMI = [P x R x (1+R)^N]/[(1+R)^N-1], where P is principal, R is monthly interest rate, and N is number of months.

What is included in the mortgage payment?

The mortgage payment typically includes principal, interest, property taxes, and homeowners insurance (PITI). Our calculator lets you include or exclude taxes and insurance. You can also add PMI (Private Mortgage Insurance) and HOA fees for a complete monthly cost picture.

Can I calculate mortgage in different currencies?

Yes! Our mortgage calculator supports multiple currencies including INR, USD, EUR, and GBP for international home buyers.

What is an amortization schedule?

An amortization schedule shows the breakdown of each payment into principal and interest over the life of the loan. It helps you see how much of your payment goes toward principal vs. interest each month.

How does the rent vs buy comparison work?

The rent vs buy comparison shows the financial impact of renting versus buying a property over 5 and 10 years. It compares total costs and shows the equity you build when buying. This helps you understand the long-term financial implications of both options.

What's the difference between a 15-year and 30-year mortgage?

A 15-year mortgage has higher monthly payments but significantly less total interest paid over the life of the loan. A 30-year mortgage has lower monthly payments but more total interest. Our scenario comparison feature lets you see the exact differences for your loan amount.

Mortgage Calculator 2026 – FHA Loans, Rent vs Buy & Interest Comparison

Free Mortgage Calculator 2026 to calculate monthly home loan EMI, total interest, rent vs buy cost, FHA loan scenarios, and full amortization schedule in INR, USD, EUR, and GBP with instant results.

Mortgage Calculator

Estimate your monthly mortgage payments, total interest, and see how much home you can afford.

Loan Details

Currency

Home Price ($)

Down Payment ($)

Loan Term

Interest Rate (%)

Optional Costs (Monthly)

Property Tax ($)

Home Insurance ($)

PMI / HOA Fees ($)

Extra Monthly Payment ($)

Include taxes and fees in calculation

How Monthly EMI Is Calculated

The calculator estimates your monthly mortgage payments using a standard financial formula that financial institutions use worldwide. This formula accounts for the loan amount you borrow, the interest rate charged by the lender, and the duration of your loan repayment period.

EMI Formula:

EMI = [P × R × (1+R)^N] / [(1+R)^N - 1]

P = Principal amount (loan amount borrowed)

R = Monthly interest rate (annual rate divided by 12)

N = Loan duration in months (years × 12)

Understanding this formula helps you see how each factor—principal, interest rate, and loan term—affects your monthly payment. Small changes in interest rates or loan duration can significantly impact your total repayment amount over the life of the loan.

Additional Costs to Consider Beyond EMI

Your monthly mortgage payment is more than just the EMI. Several additional expenses contribute to the total cost of homeownership, and these vary based on your location and lender requirements.

•
Property or Local Taxes: Annual taxes levied by local governments based on property value. These are typically collected monthly with your mortgage payment.
•
Home Insurance Requirements: Lenders require homeowners insurance to protect their investment. This covers damage from fire, weather, and other perils.
•
Private Mortgage Insurance (PMI): If your down payment is less than 20% of the home price, lenders typically require PMI to protect against default risk.
•
Association or Maintenance Fees: Condominiums, townhomes, and planned communities often charge monthly HOA fees for shared amenities and property upkeep.

These costs vary significantly by region, property type, and lender. Our calculator allows you to include these expenses for a complete picture of your monthly housing costs.

Rent vs Buy – How to Decide

Choosing between renting and buying a home depends on your financial situation, lifestyle preferences, and long-term goals. Both options have distinct advantages that suit different circumstances.

Renting

Flexibility to relocate without selling
No responsibility for major repairs
Lower upfront costs (just security deposit)
No property value accumulation

Buying

Builds equity and long-term asset value
Predictable payments (with fixed-rate loans)
Freedom to modify and personalize
Requires down payment and maintenance costs

The calculator's rent vs buy comparison shows how costs accumulate over 5 and 10 years, helping you understand the financial impact of each option. Consider your job stability, savings, credit score, and plans for the next 5-10 years when making this decision.

Financial Review & Accuracy

Methodology

This calculator uses the standard amortization formula recognized by financial institutions worldwide. Calculations follow compound interest principles as defined by the Federal Reserve and international banking standards.

Editorial Responsibility

Reviewed and maintained by the VIP Calculator Financial Tools Team. Our mortgage calculation methodology is cross-verified with chartered accountant guidelines and real estate finance standards.

Last Updated

January 2026. Formula accuracy verified against current lending industry practices.

Limitations

Results are estimates for educational and planning purposes. Actual mortgage terms may vary based on credit score, lender policies, and local regulations. This tool does not constitute financial advice.

🔒Privacy Assurance: All calculations are performed locally in your browser. No financial data is stored, transmitted, or shared with any third party.

📖How to Use the Mortgage Calculator

Enter the home price or loan amount
Input your down payment percentage or amount
Enter the annual interest rate
Select the loan term (typically 15 or 30 years)
Add property taxes, insurance, and HOA fees
Click Calculate to see monthly payment breakdown

✨Key Features of the Mortgage Calculator

Calculate monthly mortgage payments
Include property taxes and insurance (PITI)
Show amortization schedule
Display principal vs interest breakdown
Compare different loan scenarios

🎯Benefits of Using the Mortgage Calculator

Determine home affordability
Plan for homeownership costs
Compare mortgage options
Understand long-term financial commitment
Budget for total monthly housing costs

Frequently Asked Questions (FAQ)

What's included in my monthly mortgage payment?

Your payment typically includes Principal, Interest, Taxes, and Insurance (PITI). Some loans also include HOA fees and PMI.

How much should I put down on a house?

While 20% down avoids PMI, many loans allow 3-5% down. A larger down payment reduces your loan amount and monthly payments.

What's the difference between 15 and 30-year mortgages?

15-year mortgages have higher monthly payments but significantly lower total interest. 30-year mortgages offer lower payments but cost more over time.

What is PMI and when do I need it?

Private Mortgage Insurance (PMI) is required when your down payment is less than 20%. It protects the lender and typically costs 0.5-1% of the loan annually.

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