Free online mortgage calculator-It allows you to estimate your monthly mortgage payments, and the overall cost of your mortgage based on factors such as the loan amount, interest rate, and loan term.
What is a Mortgage Calculator?
A mortgage calculator is an essential tool that helps borrowers to determine their monthly mortgage payments and overall interest costs. It is a crucial step in planning and budgeting for the home-buying process and car loans.
Mortgage Formula
The formula for calculating mortgage payments can be expressed as:
M = P * (r * (1 + r)^n) / ((1 + r)^n – 1)
Where:
- M = Monthly Mortgage Payment
- P = Principal amount / Loan Amount
- r= Monthly interest rate
- n = Total number of payments or loan terms (in months
How to Calculate Monthly Mortgage?
Example Problem: Suppose you want to purchase a house for $300,000. down payment of $60,000 and loan terms for 30 years at an interest rate of 4%. How much will your monthly payment be?
Solve:-
Given Value:-
- Loan Amount = $300000
- Down Payment = $60000
- Interest Rate = 4%
- Loan Terms = 30 years
Monthly interest rate (r) = Annual interest rate / 12 = 4% / 12 = 0.00333
Total number of payments (n) = Loan term * 12 = 30 * 12 = 360
Now, we can put these values into the formula:
M = P * (r * (1 + r)^n) / ((1 + r)^n – 1)
M = (300,000 – 60,000) * (0.00333 * (1 + 0.00333)^360) / ((1 + 0.00333)^360 – 1)
M = $1,296.61
Therefore, your monthly mortgage payment would be $1,296.61.
How to Use a mortgage calculator?
Enter the All Required field (loan amount, down payment, interest rate and terms of loan in months ) then click calculate button you get the instant monthly mortgage value, total payment and total interest paid and check in pieChart.