# Mortgage Calculator

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.

Loan Amount:

\$

Down Payment:

\$

Interest Rate:

%

Terms of Loan(months):

## 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.