Loan calculator

What is a mortgage calculator?

A mortgage calculator estimates your monthly payments and the total cost of a loan from four parameters: the loan amount, the duration, the interest rate and the insurance rate. It lets you anticipate your borrowing capacity before contacting a bank, compare several scenarios and adjust your project accordingly.

How to read the results

Once the fields are filled in, the tool shows your monthly payment (principal + interest + insurance) and the total cost of the loan, that is everything you pay beyond the borrowed capital. The chart breaks down each year into principal, interest and insurance: early on you mostly repay interest, then the principal share grows steadily.

What drives your monthly payments

Three levers shape the cost of your loan. First the interest rate: even a small APR difference strongly changes the total cost, so compare a fixed rate (stable payments) with a variable rate (possible savings if rates fall). Then borrower's insurance: it is mandatory, but you can take it out elsewhere than the lending bank for a better coverage/price ratio. Finally the duration: a longer loan lowers the monthly payment but raises the total cost (more accumulated interest); a shorter loan does the opposite.

Personal contribution and debt-to-income ratio

Your personal contribution reduces the amount to borrow: it lowers your monthly payments, can improve the offered rate and limit the insurance cost. The debt-to-income ratio, the share of your income spent on repayment, is generally capped around 33% by banks: beyond that, your borrowing capacity shrinks. A well-managed budget improves your chances of good terms (our budget calculator can help).

Optimizing your loan

Before signing, shop around on both the rate and the insurance, check the required level of guarantees, and consider renegotiating during the loan if rates drop. To project the growth of your savings in parallel, combine this tool with our compound interest calculator.