About

The 9% Mortgage Calculator is designed for scenarios involving high-interest personal loans, investment properties, or historical comparison studies. A 9% rate is considered very high in the modern residential mortgage market, typically seen only during periods of aggressive anti-inflationary monetary policy or for subprime lending products.

When borrowing at 9%, the cost of capital is steep. This tool is essential for 'stress testing' your finances—ensuring you can afford the home even if adjustable rates climb to this level. It provides a stark look at how interest dominates the payment structure, often exceeding the principal repayment amount for the first two-thirds of the loan term.

Formulas

Calculation for Monthly Payment M at 9% annual interest:

r = 0.09 / 12 = 0.0075

M = P × 0.0075(1.0075)ⁿ/((1.0075)ⁿ - 1)

At 9%, nearly 90% of your first year's payments go strictly to interest.

Reference Data

Principal	Rate	Monthly P&I	Interest (Year 1)	Principal (Year 1)
$200,000	9%	$1,609	$17,946	$1,365
$300,000	9%	$2,414	$26,919	$2,048
$400,000	9%	$3,218	$35,892	$2,731
$500,000	9%	$4,023	$44,865	$3,413

Frequently Asked Questions

Affordability at 9% is roughly 40% less than at 4%. You will likely need to lower your purchase price budget significantly or increase your down payment to keep monthly payments viable.

Borrowers may accept 9% rates for investment properties with high returns, hard money loans, or during periods of high inflation where holding cash is less desirable.

Very slowly. On a 30-year loan at 9%, you will not pay off 50% of the principal until year 23. The first decade is almost entirely interest payments.