Mortgage Calculator

Input Fields

• Enter the total loan amount you want to borrow
• Input the annual interest rate as a percentage
• Select the loan term (15 or 30 years, or custom)
• Specify your down payment amount
• Add annual property tax and insurance costs
• Include PMI if your down payment is less than 20%

Calculations

• Monthly Payment: Principal and interest payment using the standard mortgage formula
• Total Payment: Sum of all monthly payments over the loan term
• Total Interest: Total interest paid over the life of the loan
• Loan-to-Value Ratio: Percentage of the property value that is financed

Tips for Accurate Calculations

• Use current market interest rates for realistic estimates
• Include all property taxes and insurance costs
• Consider PMI if your down payment is less than 20%
• Factor in closing costs and other fees
• Compare different loan terms to find the best option

Monthly Payment Formula

The monthly mortgage payment is calculated using the standard mortgage formula: M = P[r(1+r)^n]/[(1+r)^n-1], where M is the monthly payment, P is the principal amount, r is the monthly interest rate, and n is the total number of payments.

Interest and Principal

In the early years of a mortgage, most of your payment goes toward interest. As the loan progresses, more of your payment goes toward the principal. This is called amortization.

Amortization Schedule

An amortization schedule shows how each payment is split between principal and interest. Early payments are mostly interest, while later payments are mostly principal. This affects the total interest paid over the life of the loan.