Mortgage Calculator
The mortgage calculator helps you estimate your monthly mortgage payment based on your home price, down payment, interest rate, and loan term. Use it to understand your potential loan amount, total interest, and total payments before buying a home.
How to Use the Mortgage Calculator
- Enter the purchase price of the home.
- Enter your down payment amount.
- Add the annual interest rate offered by your lender.
- Select the loan term in years.
- Click Calculate Mortgage to view your estimated monthly payment and other loan details.
What Does a Mortgage Payment Include?
Your monthly mortgage payment depends on the amount borrowed, the interest rate, and the repayment period. A longer loan term generally reduces the principal and interest payment each month but may increase the total interest paid over the life of the loan.
Your actual housing costs may also include property taxes, homeowners insurance, mortgage insurance, and homeowners association fees. These expenses may not be included in the calculator’s estimate.
How Is a Mortgage Payment Calculated?
For a fixed-rate mortgage, the monthly principal and interest payment can be estimated using the following formula:
M = P × [r(1 + r)ⁿ] ÷ [(1 + r)ⁿ − 1]
Where:
- M is the monthly principal and interest payment.
- P is the loan principal after the down payment.
- r is the monthly interest rate, calculated from the annual rate.
- n is the total number of monthly payments.
Why Use an Online Mortgage Calculator?
A mortgage calculator makes it easier to compare potential loan amounts, interest rates, and repayment terms. Try different values to understand how changing your down payment or loan term may affect your estimated monthly payment.
Disclaimer: This calculator provides estimates for informational purposes only. Actual mortgage payments and borrowing costs depend on your lender’s terms, fees, taxes, insurance, and other factors.