Mortgage Calculator
Calculate your monthly mortgage payments and amortization schedule
Calculation Result
Monthly Payment: $1,216.04
Payment Breakdown:
Principal & Interest: $1,216.04
Property Tax: $250.00
Home Insurance: $100.00
PMI: $100.00
Total Monthly Payment: $1,666.04
Loan Amount
$240,000.00
Total Interest Paid
$197,774.40
Total of All Payments
$437,774.40
Pay-off Date
January 2053
Amortization Schedule (First 12 Months)
| Month | Payment | Principal | Interest | Balance |
|---|
Quick Calculations
Calculation History
| Date | Loan Amount | Rate | Term | Monthly Payment |
|---|
Mortgage Calculator Introduction
The Mortgage Calculator helps you estimate your monthly mortgage payments and understand the total cost of your home loan over time.
How Mortgage Calculation Works
A mortgage payment consists of four main components: principal, interest, taxes, and insurance (PITI). The calculator uses the standard mortgage formula to determine your monthly payment based on these factors.
Why Use a Mortgage Calculator?
A mortgage calculator helps you:
- Determine how much home you can afford
- Compare different loan options
- Understand the impact of down payment on your monthly payment
- Plan your budget for homeownership
- See how extra payments can shorten your loan term
Mortgage Components Explained
Principal
- The amount borrowed to purchase the home
- Home Price - Down Payment = Principal
- This is the base amount you need to repay
Interest
- The cost of borrowing money
- Expressed as an annual percentage rate (APR)
- Most of early payments go toward interest
Property Tax
- Taxes paid to local government
- Based on the assessed value of your property
- Typically included in monthly mortgage payments
Home Insurance
- Insurance that protects your home from damage
- Required by lenders
- Included in monthly mortgage payments
Mortgage Formulas
The calculator applies the standard mortgage formula:
- Monthly Payment: M = P [ i(1 + i)^n ] / [ (1 + i)^n - 1 ]
- Where: M = Monthly payment, P = Principal, i = Monthly interest rate, n = Number of payments
- Total Payment: Monthly Payment × Number of Payments
- Total Interest: Total Payment - Principal
Tips for Using the Mortgage Calculator
- Consider different down payment amounts to see how they affect your monthly payment
- Try different loan terms (15-year vs 30-year) to compare total interest paid
- Account for property taxes and insurance in your budget
- Remember that a lower interest rate can save you thousands over the life of the loan
- Use the amortization schedule to understand how your payments are allocated
Limitations of Mortgage Calculators
While mortgage calculators are useful tools, they have limitations:
- Results are estimates and may not reflect actual loan offers
- They don't account for all closing costs and fees
- Interest rates can change based on credit score and market conditions
- For precise calculations, consult with a mortgage professional