Mortgage Calculator - Calculate Monthly Payments, Loan Amount & Terms

Mortgage Calculator - Calculate Your Home Loan Payments

Our comprehensive mortgage calculator helps you determine monthly payments, loan amounts, and loan terms for your home purchase. Whether you're a first-time homebuyer or looking to refinance, this tool provides accurate calculations to help you make informed financial decisions.

How to Use the Mortgage Calculator

Our mortgage calculator offers three different calculation types to suit your needs:

Monthly Payment: Calculate your monthly mortgage payment based on loan amount, interest rate, and term
Loan Amount: Determine the maximum loan amount you can afford based on your desired monthly payment
Loan Term: Find out how long it will take to pay off your loan with a specific monthly payment

Mortgage Calculation Formula

The mortgage calculator uses the standard mortgage payment formula:

M = P × [r(1+r)^n] / [(1+r)^n - 1]

Where:

M = Monthly payment
P = Principal loan amount
r = Monthly interest rate (annual rate ÷ 12)
n = Total number of payments (years × 12)

Key Features

Multiple Currencies: Support for USD, EUR, GBP, JPY, and INR
Down Payment Options: Enter down payment as a fixed amount or percentage
Amortization Schedule: View detailed payment breakdown for the first 12 months
Real-time Calculations: Results update automatically as you change inputs
Comprehensive Results: See total payments, total interest, and loan-to-value ratio

Understanding Your Results

The calculator provides several important metrics:

Monthly Payment: Your fixed monthly mortgage payment
Loan Amount: The principal amount you're borrowing
Loan Term: The length of your mortgage in years and months
Loan-to-Value Ratio: The percentage of the home price you're financing
Total Payments: The total amount you'll pay over the life of the loan
Total Interest: The total interest you'll pay over the loan term

Tips for Using the Mortgage Calculator

Use current market interest rates for accurate calculations
Consider property taxes and insurance in your budget planning
Factor in closing costs when determining your down payment
Compare different loan terms to find the best option for your situation
Remember that a larger down payment reduces your monthly payment and total interest

Frequently Asked Questions

What is the difference between a fixed-rate and adjustable-rate mortgage?

A fixed-rate mortgage has a constant interest rate throughout the loan term, providing predictable monthly payments. An adjustable-rate mortgage (ARM) has an interest rate that can change periodically, typically after an initial fixed period. This calculator assumes a fixed-rate mortgage for consistent calculations.

How does the down payment affect my mortgage?

A larger down payment reduces your loan amount, which decreases your monthly payment and total interest paid. It also improves your loan-to-value ratio, which may qualify you for better interest rates and eliminate the need for private mortgage insurance (PMI).

What is PMI and when is it required?

Private Mortgage Insurance (PMI) is typically required when your down payment is less than 20% of the home's value. PMI protects the lender in case of default and adds to your monthly payment. Once you reach 20% equity, you can usually request PMI removal.

Should I choose a 15-year or 30-year mortgage?

A 15-year mortgage has higher monthly payments but significantly less total interest paid and builds equity faster. A 30-year mortgage has lower monthly payments, making it more affordable but results in more total interest. Choose based on your budget and long-term financial goals.

What additional costs should I consider beyond the mortgage payment?

Beyond your principal and interest payment, consider property taxes, homeowners insurance, PMI (if applicable), HOA fees, maintenance costs, and utilities. These additional expenses can significantly impact your total monthly housing costs.