Mortgage Repayment Calculator
Estimate your monthly payments and total loan cost instantly.
Estimated Monthly Payment
$0.00
Loan Amount
$0.00
Total Interest Paid
$0.00
Total Cost of Loan
$0.00
How to Use the Mortgage Repayment Calculator
Planning for a home purchase requires precision. Our Mortgage Repayment Calculator helps you understand the long-term financial commitment of a home loan. By adjusting the variables above, you can see how interest rates and down payments directly impact your monthly budget.
Understanding the Calculation
The monthly payment is calculated using the standard amortization formula:
M = P [ i(1 + i)^n ] / [ (1 + i)^n – 1 ]
- M: Total monthly payment.
- P: Principal loan amount (Home Price minus Down Payment).
- i: Monthly interest rate (Annual Rate divided by 12 months).
- n: Number of months in the loan term (Years multiplied by 12).
Example Calculation
If you purchase a home for $400,000 with a 20% down payment ($80,000) at a 7% interest rate for 30 years:
- Loan Principal: $320,000
- Monthly Payment: Approximately $2,129.00
- Total Interest Paid: Approximately $446,440 over 30 years.
Tips for Lowering Your Monthly Payment
1. Increase Your Down Payment: A larger upfront payment reduces the principal loan amount and may help you avoid Private Mortgage Insurance (PMI).
2. Improve Your Credit Score: Higher credit scores typically qualify for lower interest rates, which can save you tens of thousands of dollars over the life of the loan.
3. Choose a Shorter Term: While a 15-year mortgage has higher monthly payments, the total interest paid is significantly lower than a 30-year term.