Home Loan Calculator

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home loan calculator
Calculate Monthly Payment
Results:
Monthly Payment: $0.00
Principal & Interest: $0.00
Property Tax: $0.00
Home Insurance: $0.00

Total Loan Amount: $0.00
Total Interest Paid: $0.00
Total Cost of Loan: $0.00
function calculateLoan(){var price=parseFloat(document.getElementById('home_price').value);var down=parseFloat(document.getElementById('down_payment').value);var term=parseFloat(document.getElementById('loan_term').value);var rate=parseFloat(document.getElementById('interest_rate').value);var tax=parseFloat(document.getElementById('tax').value)||0;var ins=parseFloat(document.getElementById('insurance').value)||0;if(isNaN(price)||isNaN(down)||isNaN(term)||isNaN(rate)){alert('Please enter valid numeric values for price, down payment, term, and rate.');return;}var principal=price-down;if(principal<=0){alert('Down payment cannot be greater than or equal to home price.');return;}var monthlyRate=rate/100/12;var numberOfPayments=term*12;var piPayment=0;if(monthlyRate===0){piPayment=principal/numberOfPayments;}else{piPayment=principal*(monthlyRate*Math.pow(1+monthlyRate,numberOfPayments))/(Math.pow(1+monthlyRate,numberOfPayments)-1);}var monthlyTax=tax/12;var monthlyIns=ins/12;var totalMonthly=piPayment+monthlyTax+monthlyIns;var totalCost=piPayment*numberOfPayments;var totalInterest=totalCost-principal;document.getElementById('resMonthly').innerHTML=totalMonthly.toLocaleString(undefined,{minimumFractionDigits:2,maximumFractionDigits:2});document.getElementById('resPI').innerHTML=piPayment.toLocaleString(undefined,{minimumFractionDigits:2,maximumFractionDigits:2});document.getElementById('resTax').innerHTML=monthlyTax.toLocaleString(undefined,{minimumFractionDigits:2,maximumFractionDigits:2});document.getElementById('resIns').innerHTML=monthlyIns.toLocaleString(undefined,{minimumFractionDigits:2,maximumFractionDigits:2});document.getElementById('resLoanAmt').innerHTML=principal.toLocaleString(undefined,{minimumFractionDigits:2,maximumFractionDigits:2});document.getElementById('resTotalInterest').innerHTML=totalInterest.toLocaleString(undefined,{minimumFractionDigits:2,maximumFractionDigits:2});document.getElementById('resTotalCost').innerHTML=(totalCost+tax*term+ins*term).toLocaleString(undefined,{minimumFractionDigits:2,maximumFractionDigits:2});document.getElementById('answer').style.display='block';}

Calculator Use

A home loan calculator is an essential tool for any prospective homebuyer or homeowner looking to refinance. It allows you to estimate your monthly mortgage payments and see how different loan terms, interest rates, and down payments affect your long-term financial commitments.

To use this calculator, simply enter the total purchase price of the home, the amount you plan to pay upfront (down payment), the length of the loan in years, and the current annual interest rate. We also include fields for property taxes and insurance to give you a more accurate "PITI" (Principal, Interest, Taxes, and Insurance) estimate.

Home Price
The total purchase price of the property you wish to buy.
Down Payment
The cash amount you pay upfront. A higher down payment reduces your loan principal and monthly payment.
Loan Term
The number of years you have to repay the loan. Common terms are 15, 20, or 30 years.
Interest Rate
The annual interest rate charged by the lender on the loan amount.

How It Works

When you use a home loan calculator, the system applies a standard amortization formula to determine the fixed monthly payment required to pay off the principal and interest over the life of the loan. The formula for the monthly principal and interest payment (M) is:

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

  • P = Principal loan amount (Home Price – Down Payment)
  • i = Monthly interest rate (Annual Rate / 12 / 100)
  • n = Total number of monthly payments (Loan Term in years × 12)

Calculation Example

Example: Suppose you are buying a house for $400,000 with a $80,000 down payment (20%). You secure a 30-year fixed-rate mortgage at 7% interest.

Step-by-step solution:

  1. Principal (P) = $400,000 – $80,000 = $320,000
  2. Monthly Interest (i) = 0.07 / 12 = 0.005833
  3. Number of Payments (n) = 30 × 12 = 360
  4. Calculate: M = 320,000 [ 0.005833(1.005833)^360 ] / [ (1.005833)^360 – 1 ]
  5. Result: Monthly Principal & Interest = $2,128.97

Common Questions

What is a good down payment?

While a 20% down payment is traditionally recommended to avoid Private Mortgage Insurance (PMI), many home loan programs allow for down payments as low as 3% or 3.5%. However, a larger down payment reduces your monthly liability and the total interest paid over the life of the loan.

Does the calculator include closing costs?

This specific home loan calculator focuses on recurring monthly payments. Closing costs, which typically range from 2% to 5% of the purchase price, are one-time fees paid at the start of the loan and are usually not included in the monthly payment calculation unless they are rolled into the loan principal.

How does the loan term affect interest?

A shorter loan term (like 15 years) usually offers a lower interest rate and results in significantly less interest paid over time. However, the monthly payments will be much higher because the principal is being paid off twice as fast.

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