What is a good mortgage rate in 2025?

In the US, the average 30-year fixed rate is around 6.1–6.5% as of 2026. UK typical 2-year fixed rates are 4.5–5.2%. In Australia, variable rates average 6–7%. A good rate is anything below the current national average for your country and loan type.

Does this calculator work for UK, Australia, Canada and India?

Yes. Select your country using the tabs at the top of the calculator. Currency, default rates and typical term lengths update automatically. The amortization formula applies universally to all fixed-rate mortgages worldwide.

How much deposit do I need?

In the US, 20% avoids PMI (FHA loans allow 3.5%). In the UK, 5–10% is typical. In Australia, 20% avoids LMI. In Canada, minimum is 5% for homes under $500,000. In India, banks finance 75–90% of property value.

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Enter Mortgage Details

🇺🇸 US: 30-year fixed mortgages are most common. Current average rate ~6.1–6.5% APR (April 2026).

Home Price

Down Payment

Loan Term

Annual Interest Rate

Property Tax (annual, optional)

Home Insurance (annual, optional)

Monthly Repayment (P&I)

—

Principal & interest only

How to Use This Mortgage Calculator

Select your country to load the correct currency and local defaults, then enter your home price, down payment, loan term and interest rate. The calculator instantly shows your monthly principal and interest repayment, total interest paid over the life of the loan, and a full year-by-year amortization breakdown.

Mortgage Repayment Formula

Monthly repayments use the standard amortization formula: M = P × [r(1+r)ⁿ] ÷ [(1+r)ⁿ − 1] — P = principal loan amount, r = monthly interest rate (annual ÷ 12), n = total number of payments (years × 12).

Country-Specific Mortgage Notes

United States: The 30-year fixed-rate mortgage covers 70–90% of US home loans. FHA loans allow 3.5% down. PMI is required below 20% down. Current 30-year average rate: ~6.16% (April 2026).

United Kingdom: Most UK mortgages are 25-year repayment loans with a 2–5 year fixed period before reverting to SVR. First-time buyers are exempt from Stamp Duty on homes up to £500,000 (from April 2025).

Australia: 30-year terms are standard. Variable rates most common. A 20% deposit avoids Lenders Mortgage Insurance (LMI). The RBA cash rate directly influences mortgage rates.

Canada: Maximum amortization is 25 years for insured mortgages. The mortgage stress test requires qualifying at 2% above your contract rate. 5-year fixed rates are most popular.

India: Home loans typically run 20–30 years at floating rates linked to the RBI Repo Rate. Banks finance 75–90% of property value. Monthly repayments are called EMI (Equated Monthly Instalment).

30-Year vs 15-Year: The Real Cost Difference

On a $400,000 loan at 6.5%, a 30-year mortgage costs approximately $511,000 in total interest. A 15-year mortgage costs around $221,000 — a saving of $290,000. However your monthly payment is roughly 44% higher on the 15-year term. Use the calculator to model both scenarios for your exact numbers.

What is an Amortization Schedule?

Amortization describes how a fixed-rate loan is paid off through equal regular payments over time. In early years, most of each payment goes toward interest. Over time, more goes toward principal. The table in this calculator shows the exact year-by-year split from start to payoff.

Frequently Asked Questions

How is a monthly mortgage payment calculated?

Your payment is calculated from the principal (loan amount), the monthly interest rate (annual rate ÷ 12), and the total number of payments (years × 12). The amortization formula spreads payments evenly so each monthly payment stays the same throughout the loan.

Does this calculator work for UK and Australia?

Yes — click the country tabs at the top of the calculator. The currency, default interest rate and typical term length all update. The underlying math works for any fixed-rate mortgage worldwide.

What is a good mortgage rate right now?

As of April 2026, the US 30-year average is ~6.16%. UK 2-year fixed rates average ~4.5–5.2%. Australia variable rates average ~6–7%. A good rate is anything below the current national average for your country and loan type. Always compare at least three lenders.

How much deposit or down payment do I need?

In the US, 20% avoids PMI (FHA allows 3.5%). UK minimum is typically 5–10%. Australia needs 20% to avoid LMI. Canada minimum is 5% for homes under $500,000. India banks finance 75–90% of property value.

What happens if I make extra mortgage payments?

Extra payments reduce your principal directly, meaning less interest accrues. Even one extra payment per year on a 30-year mortgage can cut 4–5 years off your loan and save tens of thousands in interest. Always check your loan for prepayment penalties first.

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