Mortgage Calculator
What Is the Mortgage Calculator?
A mortgage calculator estimates the periodic payment for a home loan from the purchase price, down payment, interest rate and loan term. It is useful for comparing loan terms, testing down-payment scenarios and understanding how interest affects the total cost of a mortgage.
How to Use the Mortgage Calculator
- Enter the values requested by the calculator.
- Check the units and assumptions for each field.
- Select Calculate to generate the result.
- Change an input and calculate again if you want to compare scenarios.
Calculation Method
Monthly principal and interest can be estimated with M = P × [r(1+r)^n] / [(1+r)^n − 1], where P is the loan principal, r is the monthly interest rate and n is the number of payments. Taxes, insurance and other costs may be added separately.
Example
Example: enter the values relevant to your Mortgage Calculator scenario, calculate the result, and then change one input at a time to see how that specific variable affects the outcome.
Understanding the Result
The result is determined by the inputs required for Mortgage Calculator, the units used, and the assumptions built into its calculation. Review each field before comparing results.
Tips and Notes
For a useful comparison, keep units consistent and test more than one realistic scenario. When the result affects an important financial, health, legal, or technical decision, verify key assumptions with an appropriate authoritative source.