Mortgage Payment Calculator | Estimate Your House Payment

How the Mortgage Payment Calculator Works

Our mortgage payment calculator provides a clear estimate of what you can expect to pay each month on your home loan. It's an essential first step in the home-buying process, allowing you to understand how different loan variables can affect your monthly budget. This calculator focuses on the Principal and Interest (P&I) components of your payment.

Key Inputs Explained

• Home Price: The total purchase price of the property.
• Down Payment: The upfront amount you pay out-of-pocket. This amount is subtracted from the home price to determine the loan principal.
• Interest Rate: The annual cost of borrowing money, expressed as a percentage. This is a critical factor in determining your monthly payment.
• Loan Term: The duration of the loan, typically 15 or 30 years. Longer terms result in lower monthly payments but higher total interest costs.

The Mortgage Payment Formula

The calculator uses the standard amortization formula to determine your monthly payment:

M = P [ i(1 + i)^n ] / [ (1 + i)^n – 1]

Where:

• M = Monthly Payment
• P = Principal Loan Amount (Home Price - Down Payment)
• i = Monthly Interest Rate (Annual Rate / 12)
• n = Number of Payments (Loan Term in years * 12)

The results show your estimated monthly payment, the total interest you'll pay over the life of the loan, and the total amount you will have paid for the house when the loan is complete.

Frequently Asked Questions