Monthly Mortgage Payment Multiplier

Here is a handy little table that I found in the book “Personal Finance for Canadians for Dummies” for calculating monthly mortgage payments using a simple multiplier.

Interest Rate 15-Year Amortization 25-Year Amortization
5.0% 7.88 5.82
5.5% 8.14 6.1
6.0% 8.4 6.4
6.5% 8.66 6.7
7.0% 8.93 7.00
7.5% 9.21 7.32
8.0% 9.48 7.63
8.5% 9.76 7.95
9.0% 10.05 8.27
9.5% 10.33 8.61
10.0% 10.62 8.94
10.5% 10.92 9.29
11.0% 11.21 9.62
11.5% 11.51 9.97
12.0% 11.81 10.32

How does the table work? You find the current going interest rate, then multiply your (mortgage balance/1000) by the multiplier indicated.

For example, at todays 5 year fixed rates of around 5%, a 25-year $200k mortgage would mean a monthly mortgage payment of approximately $200k/1000 x 5.82 = $1164/month. This is the mortgage payment only and does NOT include property/water tax, insurance and heat/light.

By looking at the chart, another useful rule of thumb is that for every 0.5% that your interest rate goes up or down, you’re going to increase/decrease your monthly payment by around $30/month.

Or, you can simply use an online calculator like the one at Dinky Town.

I've Completed My Million Dollar Journey. Let Me Guide You Through Yours!

Sign up below to get a copy of our free eBook: Can I Retire Yet?

Posted in

FT

FT is the founder and editor of Million Dollar Journey (est. 2006). Through various financial strategies outlined on this site, he grew his net worth from $200,000 in 2006 to $1,000,000 by 2014. You can read more about him here.
Subscribe
Notify of

This site uses Akismet to reduce spam. Learn how your comment data is processed.

0 Comments
Inline Feedbacks
View all comments