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.
Similar Calculator
What is 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 Calculator 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.