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):

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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.