How Does a Mortgage Calculator Work?
A mortgage calculator estimates the monthly principal and interest payment on a fixed-rate home loan. Enter the home price, down payment, interest rate, and loan term to estimate your monthly payment and total interest.
Mortgage Payment Formula
P represents the loan principal, r represents the monthly interest rate, and n represents the total number of monthly payments.
What Does a Mortgage Payment Include?
The basic mortgage calculation estimates principal and interest. Your actual housing payment may also include property taxes, homeowners insurance, mortgage insurance, HOA fees, and other costs.
Frequently Asked Questions
Does a larger down payment lower my payment?
Yes. A larger down payment reduces the amount borrowed, which generally reduces the principal and interest payment.
Does this calculator include taxes and insurance?
No. This calculator focuses on principal and interest. Property taxes, insurance, mortgage insurance and other housing expenses are separate.
Can I use this calculator for different loan terms?
Yes. You can enter different loan terms to compare how the repayment period affects the estimated monthly payment and total interest.