Mortgage Calculator
Quickly and accurately calculate your monthly mortgage repayments. Include data like taxes, HOA, and PMI if needed.
What is a mortgage calculator?
A mortgage calculator lets you estimate your monthly payments and overall mortgage cost. It helps homebuyers or homeowners understand the financial impact of different mortgage terms like:
The interest rate
Loan amount
Loan term
Here’s what a typical mortgage calculator does:
Monthly Payment - Calculate your monthly mortgage payment based on the loan amount, interest rate, and loan term.
Amortization Schedule - Break down each payment into principal (the amount borrowed) and interest (the cost of borrowing).
Total Interest Paid - Show how much interest you will pay over the life of the loan.
Total Payment - Give you the total cost of the mortgage (principal + interest).
Mortgage calculators help you compare different loan options and understand the impact of changes in interest rates or loan amounts on your budget.
How can a mortgage calculator help?
Our mortgage calculator is helpful for anyone looking to buy a new home or other property.
The tool gives you a better idea of vital details like:
What type of property you can afford
How much to save up for a down payment
The ideal length of the mortgage
Estimated monthly payments
A well-designed mortgage calculator makes checking different variables much faster than manual calculation.
Our mortgage calculator also helps you answer questions about your circumstances.
Are you spending more than you can afford?
Our calculator lets you see your outlay for each month. This includes taxes, HOA, and PMI amounts. Check if you’re stretching your homebuying budget too far or paying too much relating to debt-to-income (DTI ratio).
Can your budget handle a shorter-term loan?
Calculate and compare the monthly payments and total interest across loan terms (10, 15, 20, or 30 years). You pay less interest on shorter-term loans but have higher monthly payments.
Should you put more or less money down?
Use our mortgage calculator to consider different down payment plans. See how certain down payments affect how much you’ll borrow and pay.
Should you pay off your mortgage early?
Check how extra payments can impact your payment schedule. See how quickly you’ll repay the loan and any interest savings.
How to Calculate Monthly Mortgage Payments
To better understand how to calculate monthly mortgages, let’s check out a basic mortgage calculator first.
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All mortgage calculators need you to input some basic info first, such as:
Principal loan amount
Interest rate
Downpayment
Term length (number of months/years)
The total loan amount is not the same as the price of the home or property because you first have to deduct your down payment.
All subsequent mortgage calculations will be based on the resulting principal loan amount.
Now, let’s take a look at the actual formula for calculating a mortgage payment:
Where:
P = Principal loan amount
i = Interest rate
n = Total number of payments/months
The mortgage payment formula is not overly complex. But it's much simpler and faster to use our mortgage calculator.
Basic Mortgage Calculator Inputs
These are some basic inputs for a mortgage calculator.
Loan amount
The loan amount is the total amount you borrow from a bank. For a mortgage, this is the purchase price minus your down payment.
Your borrowing power generally correlates with household income or ability to cover the loan amount. Our mortgage calculator helps you estimate an affordable loan amount.
Down payment
Your down payment is the upfront payment on the property. Lenders calculate this as a percentage of the total price. The down payment is the cost you cover as the borrower.
Typically, mortgage lenders want you to cover at least 20% of the overall cost with your down payment. You may put down a lower percentage in some instances.
A down payment of less than 20% means you must pay private mortgage insurance (PMI). This insurance remains until your loan's principal drops below 80% of the original purchase price.
The higher the down payment, the better position you're generally in. You'll get a better interest rate and overall deal.
Loan term
The loan term is the time you have to pay off the loan. Your mortgage is usually for 15, 20, or 30 years. The interest rate is generally lower for shorter-term loans.
Interest rate
The interest rate is the percentage a lender charges you for using borrowed funds to buy a home. There are two main types of mortgage interest rates:
Fixed-rate mortgage: The interest rate remains the same throughout the life of the loan. This means your monthly mortgage payments are predictable and stable.
Adjustable-rate mortgage (ARM): The interest rate changes periodically, typically after an initial fixed period. For example, a 5/1 ARM has a fixed interest rate for the first 5 years. Then, the rate adjusts annually based on market conditions.
Things to Consider When Choosing a Mortgage
Deciding on a mortgage requires a lot of careful consideration and financial planning. It’s a long-term commitment, so you must be confident you can comfortably fulfill your obligations until the end of the loan.
Monthly mortgage payments go up with higher interest rates and shorter-term lengths. If you want to drastically lower your monthly mortgage payments, look for a lender offering decently low interest rates and longer repayment terms.
But it’s also important to remember that a longer mortgage term means you’ll pay significantly more in interest over the entire length of the mortgage.
A 30-year mortgage might sound better if you only consider the monthly payment. But a 15-year mortgage and lower total interest payment make more sense for many people.
Want to find your best option quickly? Use our mortgage calculator to help you decide.
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