Calculate Your Mortgage
What is a Mortgage Calculator?
A mortgage calculator helps you estimate your monthly home loan payments based on the loan amount, interest rate, and loan term. It shows you exactly how much you'll pay each month and the total interest cost over the life of your mortgage.
Mortgage Payment Formula
M = Monthly mortgage payment
P = Principal (loan amount)
r = Monthly interest rate (annual rate ÷ 12)
n = Total number of payments (years × 12)
Consider a shorter loan term if you can afford higher monthly payments. A 15-year mortgage typically has a lower interest rate and saves you tens of thousands in interest compared to a 30-year loan!
Why It Matters
Understanding your mortgage payments helps you budget effectively and compare different loan offers. Key factors that affect your payment are: loan amount, interest rate, and loan term. Even a small difference in rate can save you thousands over the life of your loan.
- Convert annual rate to monthly:
r = 6% ÷ 12 = 0.5% = 0.005 - Calculate total payments:
n = 30 × 12 = 360 months - Apply formula:
M = 300000 × [0.005(1.005)^360] / [(1.005)^360 - 1] - Calculate:
M ≈ $1,798.65per month - Total interest:
$1,798.65 × 360 - $300,000 ≈ $347,514💰
| Year | Starting Balance | Principal Paid | Interest Paid | Ending Balance |
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