Mortgage Rate
Calculate your mortgage APR, monthly payment, total interest, and fees. Free mortgage calculator with amortization schedule for US, UK, and Indian home loans.
About This Calculator
The Mortgage Rate Calculator helps you estimate the true cost of a home loan by computing your APR (Annual Percentage Rate), monthly payment, total interest, and total payments including mortgage points and fees. Unlike basic mortgage calculators that only show the nominal rate, this tool factors in discount points, upfront processing fees, and annual fees to give you the effective interest rate you will actually pay.
The calculator uses the standard amortization formula (MP = P x [r(1+r)^n] / [(1+r)^n - 1]) to compute monthly payments. For APR, it applies the Newton-Raphson iterative method to solve for the effective interest rate that equates the net loan proceeds (after deducting points and fees) with the present value of all future payments. The yearly amortization schedule shows how each payment is split between principal and interest, along with the remaining balance over the full loan term.
Regional Notes
India: Home loan interest rates typically range from 8.5% to 10.5% (as of 2025-26). Processing fees are usually 0.25% to 1% of the loan amount. The RBI mandates that lenders disclose the annualized interest rate, but APR as a combined metric is less commonly quoted than in the US. Compare offers from SBI, HDFC, ICICI, and other banks to find the best effective rate.
US: Mortgage rates for 30-year fixed loans averaged 6.5% to 7.5% in 2025. The Truth in Lending Act (TILA) requires lenders to disclose APR prominently. Mortgage points are common (1 point = 1% of loan amount, typically reducing rate by 0.25%). FHA, VA, and conventional loans have different fee structures. Use this calculator to compare APR across offers.
UK: Mortgage rates in the UK are typically 4.5% to 6% for fixed-rate products (2025). Arrangement fees (up to £999-£1,999) and booking fees are common. The Financial Conduct Authority (FCA) requires lenders to show the APRC (Annual Percentage Rate of Charge), which includes fees. Compare fixed-rate, tracker, and discount mortgages to find the best deal.
Frequently Asked Questions
What is APR and how is it different from the interest rate?
APR (Annual Percentage Rate) represents the true annual cost of borrowing, including the interest rate plus any fees such as mortgage points, upfront fees, and annual fees. Unlike the nominal interest rate, APR gives you a complete picture of what you will actually pay over the life of the loan. In the US, lenders are required by the Truth in Lending Act to disclose APR. In India and the UK, similar disclosure requirements apply under RBI and FCA regulations respectively.
How do mortgage points affect my APR?
Mortgage points (also called discount points) are upfront fees paid to lower your interest rate. Each point typically equals 1% of the loan amount and reduces the rate by about 0.25%. Paying points increases your upfront costs and thus raises your APR, but can lower your monthly payment. This calculator shows how points impact both your upfront costs and your effective APR, helping you decide whether buying points makes financial sense.
What is the formula for calculating monthly mortgage payments?
Monthly mortgage payments are calculated using the standard amortization formula: MP = P x [r(1+r)^n] / [(1+r)^n - 1], where P is the loan amount, r is the monthly interest rate (annual rate divided by 12), and n is the total number of monthly payments. This formula ensures each payment covers the interest due and gradually reduces the principal balance over the loan term.
Is this mortgage rate calculator free to use?
Yes, this mortgage rate calculator is completely free to use with no registration or sign-up required. You can calculate as many scenarios as you need, compare different loan structures, and share your results via URL.
How does the loan term affect my mortgage rate and payments?
A shorter loan term (e.g., 15 years) typically comes with a lower interest rate but higher monthly payments, while a longer term (e.g., 30 years) has lower monthly payments but you pay more total interest over the life of the loan. The APR also differs slightly because upfront fees are spread over fewer or more months. This calculator lets you compare different terms side by side.
What fees are included in the APR calculation?
APR includes the nominal interest rate plus mortgage points (as a percentage of the loan), upfront fees (processing, origination, or application fees), and annual fees spread across the loan term. In the US, APR typically includes origination fees, points, and certain closing costs. In India, processing fees and administrative charges may be included. In the UK, arrangement fees and booking fees factor into the equivalent APR calculation.
Can I share my mortgage rate calculation results?
Yes, all your inputs are saved in the URL, so you can copy the page URL and share it with your mortgage advisor, family, or friends. When someone opens the link, the calculator will automatically load your numbers and show the results.