Mortgage Total Cost Calculator
Enter the loan, rate and term plus monthly rates, management fee and insurance to see the principal-and-interest payment, other costs and total monthly outlay.
Input Data
Results
At a glance:The true monthly cost of a home includes more than the instalment. Monthly P&I = standard amortisation of the loan at the rate; monthly extras = rates + management fee + insurance; total monthly = P&I + extras.
Formula
Monthly P&I = loan × monthly rate ÷ (1 − (1 + monthly rate)^(−12 × term)).
Monthly extras = monthly rates + management fee + insurance.
Total monthly = monthly P&I + monthly extras.
$$\\text{Extras} = \\text{Rates} + \\text{Mgmt} + \\text{Insurance}$$How to Use
- Enter the loan amount, annual rate and term.
- Enter the monthly rates, management fee and insurance.
- Read the P&I payment, other costs and total monthly outlay.
FAQ
What is the difference between rates, Government rent and management fees?
Rates is a tax the government levies at about 5% of the property's rateable value. Government rent (or Government lease rent) applies to some tenancies and is about 3% of the rateable value. The management fee goes to the estate's management company for cleaning, security and maintenance and has nothing to do with the government. This calculator takes them all as a monthly amount under 'other costs'.
Must I buy insurance to get a mortgage?
Banks generally require the mortgaged property to be insured against fire (building insurance) to protect the collateral's value; home contents insurance (covering belongings and third-party liability) is not mandatory but common. These premiums can be spread into a monthly amount and added to the total cost.
How is this calculator different from a normal mortgage calculator?
A normal mortgage calculator only computes principal and interest (P&I). This one additionally adds rates, management fees and insurance — the ongoing costs — so it reflects the total actually debited from your bank account each month, which is better for assessing the real cost of owning and for household budgeting.
Do the management fee and rates change every year?
Yes. Management fees are adjusted by the owners' corporation or management company based on actual expenses and usually creep up yearly; rates move when the government revalues rateable values, and the government also runs rates concessions from time to time. Review these figures each year and update your budget.
Why should I include these extra costs in my budget?
Because they are continuous, unavoidable fixed costs. Looking only at principal and interest easily understates the burden; when rates rise or income fluctuates, ignoring them can strain your cash flow. Working out the true total cost lets you assess affordability more soundly. Also note that for a smaller loan these fees are a larger share of the total — a HK$3m loan's rates+management+insurance of about HK$2,600 is roughly 15% of the monthly outlay, versus about 8% for a HK$6m loan — so small-flat buyers should not overlook this 'hidden instalment'.
Related Tools
References
This calculator's content is reviewed by our Licensed Financial Planning team. Results are for reference only; please refer to the relevant authorities for the official figures.