Mortgage Calculator

Calculate your monthly mortgage payments

🏠 Loan Details

💰 Payment Details

📊Formula

Monthly Payment = [P × r × (1 + r)^n] / [(1 + r)^n - 1]

💡How it works

P = Principal (loan amount), r = monthly interest rate, n = total number of payments. This formula calculates the fixed monthly payment for a mortgage loan.

ℹ️ What is Mortgage Calculator?

A mortgage calculator estimates your monthly home loan payment including principal and interest. It helps you compare loan options, understand your total cost of homeownership, and determine how much house you can afford.

📐 Formula

M = P × [r(1+r)ⁿ] / [(1+r)ⁿ−1]
M— Monthly mortgage payment
P— Principal — home price minus down payment
r— Monthly interest rate = Annual rate / 12 / 100
n— Number of payments (years × 12)

✏️ Worked Example

Home Price: $400,000
Down Payment: 20% = $80,000
Annual Rate: 7%
Loan Term: 30 years
  1. 1Principal P = $400,000 − $80,000 = $320,000
  2. 2Monthly rate r = 7 / 12 / 100 = 0.005833
  3. 3n = 30 × 12 = 360 payments
  4. 4M = $320,000 × [0.005833 × (1.005833)³⁶⁰] / [(1.005833)³⁶⁰ − 1]
  5. 5M ≈ $2,129 / month
  6. 6Total paid = $2,129 × 360 = $766,440 | Total interest = $446,440
✅ Result: Monthly payment ≈ $2,129 | Total interest ≈ $446,440

💡 How to Interpret Results

  • ▸The 28% rule: your mortgage payment should not exceed 28% of your gross monthly income.
  • ▸The 36% rule: total debt payments (mortgage + all loans) should stay under 36% of income.
  • ▸A 30-year mortgage has lower monthly payments but far higher total interest than a 15-year term.
  • ▸Adding $100–$200 extra per month to principal can cut 4–7 years off a 30-year mortgage.
  • ▸PMI (Private Mortgage Insurance) is required if your down payment is under 20% — it adds $50–$250/month.

❓ Frequently Asked Questions

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