How is the monthly mortgage payment calculated?

The standard amortization formula is M = P × [r(1+r)ⁿ] / [(1+r)ⁿ − 1], where P is the loan principal, r is the monthly interest rate (annual rate ÷ 12), and n is the total number of monthly payments (years × 12). This gives a fixed monthly payment where early payments are mostly interest and later payments are mostly principal.

What is the inflation adjustment and why does it matter?

Inflation erodes purchasing power over time. A $2,000 payment today is worth more than a $2,000 payment in 20 years. The inflation-adjusted total cost converts every future payment back to today's dollars, giving you the true economic burden of the loan. At 3% annual inflation, a 30-year mortgage's real cost is significantly lower than its nominal cost.

Does this calculator include property taxes, insurance, or PMI?

No — this calculator focuses on the principal and interest (P&I) portion of your mortgage only. Your actual monthly housing payment will also include property taxes, homeowner's insurance, and possibly PMI (private mortgage insurance) if your down payment is less than 20%. Add those separately to get your full PITI payment.

What is the difference between nominal and real total cost?

Nominal total cost is the sum of all your monthly payments in future dollars — the actual amount you write checks for. Real total cost discounts each payment by the inflation rate, expressing everything in today's purchasing power. The difference is the inflation discount: how much inflation effectively reduces your repayment burden.

How do I use this to compare 15-year vs 30-year mortgages?

Enter the same loan amount and rate for each term and compare the monthly payment and total interest. A 15-year loan has higher monthly payments but far less total interest. With the inflation adjustment, you can also see that a longer term may have a lower real total cost because distant payments are worth less in today's dollars.

Is this calculator accurate for all countries?

The amortization formula is internationally standard and used in the US, Canada, UK, Australia, and most other countries for fixed-rate mortgages. Some countries use different compounding conventions (e.g., Canada compounds semi-annually). This calculator assumes monthly compounding, which is standard in most markets.

Mortgage Calculator

Calculate your monthly payment, total interest, and see how inflation reduces the real burden of your loan over time.

Loan Amount

Annual Interest Rate (%)

Loan Term

Annual Inflation Rate (%)

Inflation reduces the real cost of future payments — see your true repayment burden

Repayment Method

Monthly Payment

2,533.43

Equal Installment

Total Nominal Payment

912,034

Total Interest Paid

412,034

Interest / Principal

82.4%

Real Total Cost

641,178

Sum of all payments in today's purchasing power (inflation-adjusted)

Inflation Discount

270,856

How much inflation reduces your real repayment burden

Principal 55%Interest 45%

Amortization Schedule

Year	Principal Paid	Interest Paid	Remaining Balance	Real Balance
1	8,066	22,335	491,934	479,800
2	8,437	21,964	483,497	459,941
3	8,824	21,577	474,673	440,409
4	9,230	21,171	465,443	421,194
5	9,654	20,747	455,790	402,285

Calculate Your Mortgage Payments Instantly

Zolkit's mortgage calculator runs entirely in your browser. Enter your loan amount, interest rate, and term to instantly see your monthly payment and full amortization schedule. The built-in inflation adjustment shows the real cost of your loan in today's purchasing power.

Accurate Payment Formula

Uses the standard amortization formula M = P·r(1+r)ⁿ / [(1+r)ⁿ−1] to calculate exact monthly payments for any principal, rate, and term.

Inflation Adjustment

Calculates the real purchasing-power cost of each payment discounted by your chosen inflation rate. See how a 30-year mortgage becomes cheaper in real terms over time.

Full Amortization Schedule

Year-by-year breakdown of principal paid, interest paid, remaining balance, and inflation-adjusted real balance for every year of the loan.

100% Private

All calculations happen instantly in your browser using JavaScript. No data is sent to any server.

Instant Results

Results update in real time as you type. No button to press, no page reload.

Completely Free

No account, no sign-up, no paywalls. Use it as many times as you need.

How to Use the Mortgage Calculator

1
Enter your loan amount, annual interest rate, and loan term. The monthly payment and full cost breakdown appear instantly.
2
Adjust the inflation rate to see how future payments lose purchasing power over time. The default 2.5% reflects a conservative long-run global average.
3
Scroll down to the amortization schedule to see the year-by-year breakdown of principal, interest, and remaining balance.