Mortgage Calculator
Calculate monthly payments, interest totals, and generate a full amortization schedule for your home loan.
About this Calculator
Calculate monthly payments, interest totals, and generate a full amortization schedule for your home loan.
Formula & Calculations
Formula
M = P [ i(1+i)^n ] / [ (1+i)^n - 1 ]Where:
- M=Monthly mortgage payment
- P=Principal loan amount (home price minus down payment)
- i=Monthly interest rate (annual interest rate divided by 12)
- n=Total number of monthly payments (loan term in years multiplied by 12)
Assumptions
- Assumes fixed interest rate throughout the entire loan term.
- Assumes monthly compound frequency for interest calculations.
- Does not include property taxes, home insurance, or PMI (Private Mortgage Insurance).
Calculation Examples
Example 1
Inputs:Home Price: $400,000, Down Payment: $80,000 (20%), Interest Rate: 6.5%, Term: 30 Years
Result:Monthly Payment: $2,022.62
With a loan principal of $320,000, the monthly payment covers principal and interest over 360 payments.
Frequently Asked Questions
What is a mortgage payment comprised of?
A standard mortgage payment consists of Principal (the amount borrowed), Interest (the lender's fee), Taxes (property taxes), and Insurance (homeowners insurance). This is often abbreviated as PITI.
How does a down payment affect my monthly payment?
A larger down payment reduces the principal amount you borrow, which lowers your monthly payments. Additionally, putting down at least 20% helps you avoid paying for Private Mortgage Insurance (PMI).