Planning to buy an apartment and want to understand how much you’ll end up overpaying on your mortgage? A mortgage calculator can help — it's a simple online tool that instantly calculates your monthly payment, total interest paid, and the final cost of your home. In this article, we’ll explain how the calculator works, go over some calculation examples, and share tips on how to save tens of thousands of drams.

What Is a Mortgage Calculator?

A mortgage calculator is an online tool designed to help you estimate:

1. Your monthly payment amount
2. The total interest over the life of the loan
3. The full amount you’ll repay to the bank

Using the calculator, you can evaluate in advance whether a particular mortgage program fits your financial situation. Online calculators may differ slightly from those used by banks, but they follow the same core logic, allowing you to make fairly accurate estimates of your future mortgage costs.

Important: The calculator does not require passport details and has no impact on your credit history. It is intended for preliminary assessment only, so you should never enter personal information on third-party websites.

How Does a Mortgage Calculator Work?

A mortgage calculator is a tool that helps you understand in advance how much you’ll be paying for housing each month and what your total loan overpayment will be. Let’s take the example of our mortgage calculator, which follows the same logic as those used by banks in Armenia.

What Data Needs to Be Entered:

1. Property value – for example, AMD 25,000,000 (the average price of a two-bedroom apartment in Yerevan in 2025)
2. Down payment – e.g., 20% (AMD 5,000,000)
3. Loan term – anywhere from 5 to 30 years
4. Type of property – in Armenia, this may be a new development, a resale apartment, or a private house
5. Borrower or co-borrowers' income – to assess the debt-to-income ratio
6. City оr Region – affects eligibility for government support programs (e.g., for families of military personnel or those in border communities)

What the Calculator Shows:

Once the information is entered, the calculator provides:

1. Loan amount (property price minus down payment)
2. Interest rate (depends on the program: commercial or subsidized)
3. Monthly payment (annuity-based, meaning fixed monthly payments)
4. Total interest paid – the amount you’ll pay on top of the principal
5. Total loan cost – the full amount repaid over the life of the loan

Additionally, the calculator may suggest:

1. Eligible government-subsidized programs
2. The minimum required income for loan approval
3. Options for early repayment

Example Calculation:

Let’s say you want to buy an apartment priced at AMD 25,000,000. You make a 20% down payment (AMD 5,000,000) and take out a 20-year mortgage.

Option 1: Standard Commercial Mortgage (10.5% interest)

1. Loan amount: AMD 20,000,000
2. Interest rate: 10.5%
3. Monthly payment: approx. AMD 199,000
4. Total interest paid: approx. AMD 27,760,000
5. Total loan cost: approx. AMD 47,760,000

Option 2: Government Program for Young Families (4% interest)

1. Interest rate: 4%
2. Monthly payment: approx. AMD 121,200
3. Total interest paid: approx. AMD 9,088,000
4. Total loan cost: approx. AMD 29,088,000

Option 3: Military Housing Program (0% interest)

1. Monthly payment: approx. AMD 83,333
2. Total interest paid: AMD 0
3. Total loan cost: AMD 20,000,000

Bottom Line:

The calculator not only helps you estimate your payments, but also allows you to compare mortgage programs. As you can see, the total overpayment can vary by tens of millions of AMD depending on the loan terms. You can find out how much down payment is required for a mortgage in Armenia on AFM.

How Much Does the Average Borrower Overpay on a Mortgage in Armenia in 2025?

To understand the real cost of a mortgage without government support programs, we analyzed three current offers from Armenian banks. The calculations are based on a typical scenario:

Loan amount — AMD 20,000,000

Term — 10–15 years

Interest rate — commercial, unsubsidized

Below is a table showing the monthly payments and total overpayment for each option:

The average borrower taking out a mortgage without government subsidies in Armenia will overpay approximately AMD 21,080,596 on a AMD 20 million loan. This highlights the importance of comparing offers in advance and choosing the most favorable terms.

How the AFM Mortgage Calculator Works

The AFM mortgage calculator is powered by artificial intelligence, which means it takes into account not only your loan amount and term, but also the actual rates from all Armenian banks, including all commissions and fees. This ensures maximum accuracy and gives you a complete picture of your total loan cost.

To find out your monthly mortgage payment, simply open the chat and type a natural-language request like:

“What will my payment be if I take a mortgage from Ineco Bank under the Young Families program for 20 years with a 15% down payment?”

You'll instantly receive detailed loan information.

Conclusion

A mortgage calculator is a simple yet powerful tool that helps you estimate your financial commitment to the bank in advance. It shows:

1. How much you’ll pay each month
2. The total amount of interest paid over the loan term
3. Which mortgage programs you may be eligible for

As real-world examples show, mortgage overpayments can differ by tens of millions of AMD depending on the interest rate, loan term, and whether or not you qualify for a government program.

For instance, with a standard commercial mortgage of AMD 20,000,000 (without subsidies), you could overpay approximately AMD 21,080,596.

But with a 0% government program, you may not overpay at all.

How to Avoid Overpaying on Your Mortgage:

1. Compare offers from different banks — the differences can be significant
2. Take advantage of government programs if you meet the eligibility criteria
3. Make the largest possible down payment to reduce your loan principal
4. Make early repayments — even partial ones can reduce your total overpayment

Compare the offers in the “Mortgage” section on AFM and use our calculator to get the most accurate and personalized loan estimate!