Mortgage Calculator
Calculate your monthly mortgage payments, view your amortization schedule, and understand the total cost of your home loan with our free mortgage calculator.
What is a Mortgage?
A mortgage is a loan used to purchase or maintain a home, land, or other types of real estate. The borrower agrees to pay the lender over time, typically in a series of regular payments that are divided into principal and interest. The property serves as collateral to secure the loan.
Mortgages are available in various forms, with different interest rates, terms, and payment structures. Understanding how your mortgage works is essential for making informed decisions about one of the largest financial commitments you'll likely make.
The Mortgage Payment Formula
The formula for calculating monthly mortgage payments is:
- M = monthly mortgage payment
- P = principal loan amount (the amount borrowed)
- r = monthly interest rate (annual rate divided by 12)
- n = number of payments (loan term in years multiplied by 12)
How to Use This Calculator
- Enter the home price (the total cost of the property)
- Input your down payment amount or percentage
- Set the annual interest rate for your mortgage
- Select the loan term in years (typically 15, 20, or 30 years)
Important Notes
This calculator provides estimates only. Actual loan terms and payments may vary. Consult with a mortgage professional for advice specific to your situation.
- This calculator assumes a fixed interest rate for the entire loan term.
- Property taxes, homeowners insurance, and mortgage insurance are not included in these calculations.
- Additional payments or irregular payment patterns are not factored into these calculations.