Home Loan Calculator
From loan amount, annual rate and term, compute a home loan's monthly payment, total repayment and total interest to assess long-term affordability.
Input Data
Results
At a glance:A home loan (mortgage) is a property-secured, large and long (HK commonly 25–30y) instalment loan, usually amortising: fixed monthly payment, interest share high early, principal share high later. Monthly rate r = annual ÷ 12; months n = term × 12; monthly payment = loan × r × (1+r)ⁿ ÷ ((1+r)ⁿ − 1); total interest = payment × n − loan. Most HK mortgages float (linked to HIBOR/Prime), so actual payments move with market rates.
Formula
Monthly rate r = annual rate ÷ 100 ÷ 12; months n = term × 12.
Monthly payment = loan × r × (1+r)ⁿ ÷ ((1+r)ⁿ − 1).
Total repayment = monthly × n; total interest = total − loan.
$$PMT = A \times \dfrac{r(1+r)^{n}}{(1+r)^{n} - 1}, \quad r = \dfrac{\text{annualRate}}{12}, \quad n = \text{years} \times 12$$$$\text{TotalInterest} = PMT \times n - A$$How to Use
- Enter the loan amount (usually price minus down payment).
- Enter the annual rate and term.
- View the monthly payment, total repayment and total interest.
Loan HK$4,000,000: monthly payment and total interest by term and rate
| Term | 3% | 3.5% | 4.5% |
|---|---|---|---|
| 20y | HK$22,184/mo / HK$1,324,137 | HK$23,198/mo / HK$1,567,613 | HK$25,306/mo / HK$2,073,434 |
| 25y | HK$18,968/mo / HK$1,690,536 | HK$20,025/mo / HK$2,007,483 | HK$22,233/mo / HK$2,669,990 |
| 30y | HK$16,864/mo / HK$2,071,098 | HK$17,962/mo / HK$2,466,244 | HK$20,267/mo / HK$3,296,268 |
At 4M, amortising. Longer term lowers the monthly but raises total interest; higher rate raises both. HK mortgages float; actual payments move with HIBOR/Prime.
Case Studies
25y vs 30y: HK$2,063 less monthly, HK$460k more interest
At 4M, 3.5%: 25y EMI ≈ 20,025, interest ≈ 2.007M; 30y EMI ≈ 17,962, interest ≈ 2.466M.
Lengthening 25→30y cuts the monthly by ~2,063 (easier cash flow) but adds ~459k interest over the life. If affordable, a shorter term saves substantial interest.
Rate +1pp: 25y costs HK$660k more interest
HK mortgages float. At 4M, 25y: 3.5% → EMI ≈ 20,025, interest ≈ 2.007M; 4.5% → EMI ≈ 22,233, interest ≈ 2.670M.
Just a 1pp rise adds ~2,208/month and over 660k interest over the term. So keep a rate-rise buffer when applying.
FAQ
What monthly payment is safe relative to income?
The HKMA now approves mainly by the debt-servicing ratio (DTI) cap: generally 50% for owner-occupied, 40% if there is another mortgage or guarantee. Keep a buffer — a common rule is monthly payment under half of household income, to absorb rate rises or income swings.
Is a mortgage stress test still required?
From 28 Feb 2024 the HKMA 'paused' the assumed +2pp (200 bp) rate-rise stress test, so approval is mainly by the DTI cap. But floating-rate payments still move with the market, so stress-test at a higher rate yourself. Refer to the HKMA's latest.
Floating or fixed rate; is the result accurate?
Most HK mortgages float (linked to HIBOR or Prime) and move with the market. This tool assumes a fixed rate for estimation; actual payments vary, so use the current rate as a reference and recalculate periodically.
Longer term or bigger down payment?
A bigger down payment reduces the loan directly, lowering both monthly payment and total interest; a longer term lowers the monthly but raises total interest. If cash is ample, raise the down payment; if you want to keep liquidity, a longer term is an option, but watch the total interest.
Max LTV and term?
Per the HKMA's 28 Feb 2024 guidance, owner-occupied homes at or below HK$30M can get up to 70% LTV (30% down); higher LTV needs mortgage insurance (MIP). Terms commonly cap near 30 years, limited by building age and borrower age — actual per the bank.
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References
Content review: Calculatorism Finance Team. Results are for reference only; please refer to the relevant authorities for the official figures.