Use this mortgage calculator tool to effectively estimate your monthly mortgage payments based on the home price, down payment, interest rate, and loan term.
Mortgage Calculator Explained
This mortgage calculator helps you estimate your monthly mortgage payments. It considers the loan amount, interest rate, and the term of the loan to provide you with an approximate monthly payment.
How to use
Input your mortgage details in the fields above:
- Loan amount – The total value of the loan you need.
- Interest rate – The annual interest rate on the loan.
- Loan term – The total number of years you have to repay the loan.
Then, click on the “Calculate” button to see your estimated monthly payment.
How It Calculates
The calculator uses the following formula to determine the monthly payment:
M = P[r(1+r)^n] / [(1+r)^n – 1]Where:
Mis your monthly payment.Pis the principal loan amount.ris your monthly interest rate. This is your annual interest rate divided by 12 (the number of months in a year).nis your number of payments (the number of months you will be paying the loan).
Limitations
Please note that this calculator provides an estimate only. It does not include other costs that may be included in your mortgage payment such as property taxes, homeowner’s insurance, HOA fees, etc. The calculator also assumes a fixed interest rate, and does not account for a variable rate or balloon payments.