Mortgage Calculator

Category: Mortgage and Real Estate
- April 02, 2025
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Calculate your monthly mortgage payment, total interest, and view amortization schedule based on loan details.

Loan Information

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Additional Options

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Understanding Your Mortgage

A mortgage is a loan secured by property, typically used to purchase a home. When you take out a mortgage, you agree to pay back the principal (the amount borrowed) plus interest over a set term.

Payment Components
  • Principal: The original loan amount that decreases as you make payments.
  • Interest: The cost of borrowing money, calculated as a percentage of the outstanding loan balance.
  • Taxes: Property taxes collected with your mortgage payment and held in escrow.
  • Insurance: Homeowner's insurance premiums also collected and held in escrow.
Amortization

Mortgage loans are amortized, which means each payment includes both principal and interest. Early in the loan, most of your payment goes toward interest. As the principal balance decreases over time, more of each payment goes toward the principal.

Extra Payments

Making extra payments toward the principal can significantly reduce the total interest paid and shorten the loan term. Even small additional amounts can make a big difference over time.

Monthly Mortgage Payment Formula:

\( M = P \times \frac{r(1 + r)^n}{(1 + r)^n - 1} \)

Where:

  • M = Monthly payment
  • P = Loan amount (principal)
  • r = Monthly interest rate (annual rate ÷ 12)
  • n = Total number of payments (loan term in months)

What This Mortgage Calculator Does

This mortgage calculator is a helpful tool that estimates your monthly mortgage payments, total loan cost, and how much interest you’ll pay over time. It also provides a detailed loan amortization schedule so you can see exactly how each payment contributes to your home loan.

Whether you're planning to buy a new home or refinance your current mortgage, this home loan estimator helps you make smarter decisions about your finances.

Key Features of the Calculator

  • Monthly mortgage breakdown with principal, interest, taxes, and insurance
  • Payment frequency options: monthly, bi-weekly, or weekly
  • Custom loan terms and start dates
  • Ability to include property taxes and home insurance
  • Extra payment input to explore early payoff options
  • Loan amortization schedule: yearly or monthly view
  • Export amortization data as CSV
  • Visual comparison of standard vs extra payment scenarios

How to Use the Mortgage Calculator

  1. Enter your loan details: Provide the loan amount, interest rate, and term length. You can also select custom years if needed.
  2. Choose your payment frequency: Decide if you’ll pay monthly, bi-weekly, or weekly.
  3. Set your start date: Pick the date your loan will begin.
  4. Add extra payments (optional): Enter a regular extra amount to see how early you can pay off the loan and how much interest you’ll save.
  5. Include taxes and insurance (optional): Add annual property tax and insurance amounts for a more accurate estimate.
  6. Click “Calculate Mortgage”: The calculator will display your monthly payment, total interest, total cost, and payoff date.
  7. View amortization: Switch between monthly and yearly breakdowns and export the data if needed.

Why This Tool Is Useful

This mortgage payment tool helps you understand the long-term cost of a loan and assess your borrowing capacity. With real-time results, it works as a loan affordability guide and a house financing planner.

Whether you’re budgeting for a new home, refinancing, or planning to make extra payments, this tool gives you clear insights into your mortgage amortization and debt repayment plan. It can also act as a mortgage overpayment calculator to help reduce interest costs and pay off your mortgage faster.

Frequently Asked Questions (FAQ)

1. How accurate is this mortgage calculator?

It provides a close estimate based on your input, using standard formulas. Actual loan terms may vary depending on your lender, taxes, insurance, and credit profile.

2. Can I use this tool for refinancing?

Yes. Use it as a refinance savings tool by inputting your new loan amount and rate. You can compare with your current payment to estimate potential savings.

3. What if I make extra payments?

Adding extra payments can reduce the overall loan cost and shorten the payoff period. This calculator shows how much you’ll save and when your loan could be paid off early.

4. What is included in the monthly payment?

By default, the monthly mortgage breakdown includes principal and interest. You can also add property tax and home insurance to get a full monthly cost estimate.

5. Can I download the results?

Yes, you can export the amortization schedule as a CSV file for future reference or sharing with your lender or financial advisor.

Explore More Home Financing Tools

In addition to this mortgage calculator, consider checking out other helpful tools like:

These tools complement the mortgage calculator and support better decisions when planning to buy or finance a home.