Monthly Mortgage Payment Multiplier

Written by: FT

Published: February 1, 2007

Edited: February 7, 2007

In this article:

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.