Mortgage Calculator

Estimate your monthly mortgage payment, the total you'll repay, and the total interest you'll pay over the life of the loan. Enter the loan amount, annual interest rate and term to see results instantly.

Currency

Loan amount

= 300,000 $Annual interest rate

Loan term

years

Monthly payment

$1,896.20

Total paid$682,633.47

Total interest$382,633.47

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How it works

M is the monthly payment, P the loan principal, r the monthly interest rate (annual rate ÷ 12), and n the number of monthly payments (years × 12). This standard amortization formula spreads principal and interest evenly across the term.

M = P · r(1+r)ⁿ ÷ ((1+r)ⁿ − 1)

Worked examples

300,000 over 30 years at 6.5%
The Mwangas, first-time buyers in Dodoma, looking at a 30-year term.
A 300,000 mortgage at 6.5% for 30 years gives a monthly payment of about 1,896.20, with roughly 382,633 paid in interest.
The same loan over 15 years instead of 30
The Mwangas choosing a 15-year term instead — the trade a shorter term makes.
The same 300,000 at 6.5% over 15 years costs 2,613.32 a month instead of 1,896.20, and 170,398 in total interest instead of 382,633 — paying 717.12 a month more saves about 212,235 in interest.
Paying the instalment for the whole term
Neema, working out what the 30-year loan would cost her in total before signing.
A payment of about 1,896.20 for 360 months comes to about 682,633 in total, against the 300,000 borrowed. Most of each early payment is interest rather than principal, which is why the total is more than twice the amount advanced.

What this assumes, and where it does not apply

What it assumes

Equal monthly instalments on a reducing balance, with the rate you enter held for the whole term.
The interest rate is the one you type. This site publishes no Tanzanian mortgage rate because we have not verified a current market rate to stand behind.
Excludes arrangement fees, insurance, valuation, legal costs and stamp duty.
The annual rate you enter is divided by twelve to give the monthly rate the formula uses, so a lender quoting a monthly rate has to have it multiplied by twelve before it is entered.

Where the result does not apply

A variable or re-priced rate changes the payment; this assumes the rate stays fixed for the full term.
Mandatory insurance on the financed amount is not included, and most lenders require it.
The deposit and the upfront costs around a purchase are separate from the loan itself - the Tanzania mortgage guide sets them out.
It does not apply to an interest-only mortgage or one with a balloon payment, where the balance is not amortised to zero over the term and the payment here would not repay it.

Mortgages in Tanzania

The interest rate on a Tanzanian loan is usually quoted per month on a reducing balance, and the calculator above expects an annual figure — so multiply a quoted monthly rate by twelve before you enter it, and check which balance the rate is applied to. A flat rate is the trap: it is charged on the original amount for the whole term, so an apparently cheap headline rate costs considerably more than the same number on a reducing balance.

On a 10,000,000 TZS loan quoted at 12% over 3 years, a flat-rate lender charges 3,600,000 TZS in interest (377,778 TZS a month), while the same 12% on a reducing balance costs 1,957,152 TZS (332,143 TZS a month) — so the flat loan's true annual cost is about 21.2%, not 12%.

That example uses a 12% annual rate for illustration only. This site does not publish a “current Tanzanian loan rate”, because lenders set their own and no verified figure is available to us — the rate your lender quotes is the one that matters.

A mortgage is not only the monthly instalment. Deposit, legal fees, stamp duty and agent commission are payable in cash before or at completion, and they are the part first-time buyers underestimate:

On a 100,000,000 TZS house with a 20% deposit you borrow 80,000,000 TZS; at an illustrative 12% over 20 years that is about 880,869 TZS a month and roughly 131,408,538 TZS of interest over the term. Before you start you also need the 20,000,000 TZS deposit, 1,000,000 TZS stamp duty and 1,000,000–2,000,000 TZS in legal fees — about 22,000,000–23,000,000 TZS in cash.

Deposit 10–20% of the price
Legal fees 1–2%, stamp duty 1%
Agent commission 2–5% where an agent is involved
A common rule of thumb is to have 25–30% of the price in cash before you start

Upfront-cost ranges from Coldwell Banker Tanzania — How to Buy a House in Tanzania · checked 10 September 2026

Read the detail in Getting a mortgage in Tanzania, or browse all loans and finance calculators.

Frequently asked questions

What is included in a mortgage payment?

This calculator shows principal and interest only. Your actual payment may also include property taxes, homeowners insurance and, if applicable, mortgage insurance.

How does the loan term affect interest?

Longer terms lower the monthly payment but greatly increase total interest, because you pay interest for more years.

What is amortization?

Amortization is the gradual repayment of a loan through scheduled payments that cover both principal and interest.

Why is most of my early mortgage payment interest?

Because interest is charged each month on the balance outstanding, and that balance is at its largest at the start. As the balance falls the interest part shrinks and the principal part grows, while the payment itself stays level.

Results are estimates provided for information only and do not constitute financial, legal or tax advice. Consult a qualified professional before making financial decisions.

Delta Tech Solutions prepared this page. No external tax, accounting or legal professional reviewed it — the figures were checked against the sources listed above, and you should confirm anything you rely on with the authority that sets it.

Sources: Consumer Financial Protection Bureau — what a mortgage payment includes

Maintained by David M at Delta Tech Solutions · Figures last checked 10 October 2026 · Next check due 10 April 2027

Read the guide: Flat Rate vs Reducing Balance: Loan Interest →

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