Mortgage Calculator
Supports Equal Monthly Payment and Equal Principal Payment methods — work out your monthly payment, total interest and total repayment.
About This Tool
A mortgage is a long-term financial commitment for most home buyers. Home loans from commercial banks generally come in two repayment types: Equal Monthly Payment and Equal Principal Payment, which differ significantly in payment structure and total interest.
Equal Monthly Payment means you repay the same amount every month (principal plus interest) throughout the term. Its advantage is a fixed monthly payment, which makes household budgeting easier and keeps the repayment pressure lighter in the early years. Because less principal is repaid early on, the total interest is relatively higher.
Equal Principal Payment means you repay the same amount of principal every month, with interest decreasing as the remaining principal shrinks. Its advantage is lower total interest, but the early monthly payments are higher and gradually decrease over time — suitable for those with a higher current income or an expectation of falling income.
This tool calculates the monthly payment, total interest and total repayment for the repayment type you choose. Results are for reference only; actual amounts are subject to your bank's calculation.
How to Use
- Choose a repayment type: Equal Monthly Payment (fixed payment) or Equal Principal Payment (decreasing payment).
- Enter the loan amount (in 10k CNY), the loan term (in years) and the annual interest rate (in %).
- Click "Calculate" to see your monthly payment, total interest and total repayment.
FAQ
Equal Monthly Payment vs Equal Principal Payment — which is better?
With the same loan amount, term and rate, Equal Principal Payment has less total interest but higher early payments. If cash flow is tight in the early years, Equal Monthly Payment is easier; if you can afford higher early payments, Equal Principal Payment saves more money.
How much of my income can the monthly payment take?
It is generally recommended to keep the monthly payment under 50% of your household monthly income, and ideally within 30%–40%, so it does not hurt your quality of life or financial resilience.
Why doesn't my result match the bank's?
Possible reasons include: the rate your bank actually applies differs from the rate you entered, differences in interest-bearing days between the loan date and the repayment date, or a different repayment date setting. This tool returns theoretical values — your bank's calculation prevails.
How much interest can prepayment save?
Prepayment reduces the interest that would otherwise accrue in the future. With Equal Monthly Payment, interest makes up a larger share of the early payments, so the earlier you prepay the more you save. With Equal Principal Payment, the remaining principal is already small later in the term, so prepayment saves relatively little interest.
What annual interest rate should I enter?
Enter the annual rate your bank actually applies. Most Chinese mortgage rates are formed as LPR (Loan Prime Rate) plus a margin — check with your lender or your loan contract for the exact value.