This mortgage calculator helps you estimate your monthly home loan payments with ease.
How To Use The Mortgage Calculator:
To use this mortgage calculator, simply fill in the fields with the corresponding values for the desired loan amount (Principal), the annual interest rate (without the percent symbol), and the term of the loan in years. Once you’ve filled out the necessary fields, click ‘Calculate’ to obtain your estimated monthly payment.
How It Calculates:
The calculator uses the standard formula for calculating monthly payments on an amortizing loan, which is:
Monthly Payment = P * r(1+r)^n / ((1+r)^n - 1)
Where:
Pequals the principal loan amount.requals the monthly interest rate, which is the annual interest rate divided by 12.nequals the total number of payments, which is the term of the loan in years times 12.
Limitations:
Keep in mind this calculator assumes a fixed interest rate throughout the entire term of the loan. It also assumes that the loan will be fully repaid in equal monthly installments over a specified period. This calculator should be used as a guideline and does not account for other costs associated with a mortgage such as taxes, insurance, closing costs, adjustment periods for adjustable-rate loans, or fluctuations in interest rates.