Total Principal Paid: $0.00Total Interest Paid: $0.00Total Amount Paid: $0.00
Understanding Your TD Trust Mortgage Payment
A mortgage is a significant financial commitment, and understanding how your monthly payment is calculated is crucial for effective budgeting and financial planning. This calculator helps you estimate your regular mortgage payment, taking into account the principal loan amount, the annual interest rate, the term of the mortgage, and the frequency of your payments.
How the Mortgage Payment is Calculated
The calculation for a fixed-rate mortgage payment uses a standard formula. The most common formula is derived from the annuity formula:
M = P [ i(1 + i)^n ] / [ (1 + i)^n – 1]
Where:
M = Your total monthly mortgage payment (principal and interest).
P = The principal loan amount (the total amount you borrow).
i = Your monthly interest rate. This is calculated by dividing your annual interest rate by 12 (months in a year). For example, if your annual rate is 5.5%, your monthly rate is 5.5% / 12 = 0.0045833.
n = The total number of payments over the loan's lifetime. This is calculated by multiplying the number of years in your mortgage term by the number of payments you make per year (e.g., 25 years * 12 payments/year = 300 payments).
Note: While the formula directly calculates the monthly payment (M), this calculator adapts it slightly to accommodate different payment frequencies (bi-weekly, weekly) by adjusting 'i' and 'n' based on the chosen frequency before applying the core logic. The displayed "monthly payment" is the equivalent payment needed each month if you were to make those specific frequency payments.
Key Terms Explained:
Mortgage Amount (Principal): This is the actual amount of money you borrow from TD Trust to purchase your property. It's the starting point for all calculations.
Annual Interest Rate: This is the percentage charged by the lender on the outstanding loan balance. A lower interest rate means a lower overall cost for your mortgage.
Mortgage Term: The length of time you have to repay the loan, typically expressed in years (e.g., 5, 10, 25, 30 years). Shorter terms usually mean higher regular payments but less interest paid overall.
Payment Frequency: This determines how often you make payments. Common options include monthly, bi-weekly, or weekly. Making more frequent payments (like bi-weekly) can slightly reduce the total interest paid over the life of the loan because you're paying down the principal faster.
Monthly Payment: This is the estimated amount you'll need to pay each month to cover both the principal borrowed and the interest charged. This calculator focuses on providing this key figure.
Why Use a Mortgage Calculator?
Using a tool like this TD Trust Mortgage Calculator allows you to:
Estimate affordability: See how different loan amounts, rates, and terms impact your potential monthly payments.
Compare options: Evaluate different mortgage products or scenarios before committing.
Budget effectively: Understand the ongoing cost of homeownership.
Plan for the future: Estimate total interest paid and make informed decisions about extra payments.
This calculator provides an estimate based on the standard mortgage payment formula. For precise figures and personalized advice regarding TD Trust mortgage products, please consult directly with a TD Trust mortgage specialist.
function formatCurrency(amount) {
return "$" + amount.toFixed(2).replace(/\d(?=(\d{3})+\.)/g, '$&,');
}
function calculateMortgage() {
var loanAmount = parseFloat(document.getElementById("loanAmount").value);
var annualInterestRate = parseFloat(document.getElementById("annualInterestRate").value);
var loanTermYears = parseInt(document.getElementById("loanTermYears").value);
var paymentFrequency = parseInt(document.getElementById("paymentFrequency").value);
var resultDiv = document.getElementById("result");
var monthlyPaymentP = document.getElementById("monthlyPayment");
var detailsSpan = document.getElementById("result-details").getElementsByTagName('span');
// Clear previous results and styling
monthlyPaymentP.textContent = "$0.00";
detailsSpan[0].textContent = "Total Principal Paid: $0.00";
detailsSpan[1].textContent = "Total Interest Paid: $0.00";
detailsSpan[2].textContent = "Total Amount Paid: $0.00";
resultDiv.style.display = 'none'; // Hide until calculation is valid
// Input validation
if (isNaN(loanAmount) || loanAmount <= 0 ||
isNaN(annualInterestRate) || annualInterestRate <= 0 ||
isNaN(loanTermYears) || loanTermYears <= 0 ||
isNaN(paymentFrequency) || paymentFrequency 0) {
monthlyPayment = loanAmount * (monthlyInterestRate * Math.pow(1 + monthlyInterestRate, numberOfPayments)) / (Math.pow(1 + monthlyInterestRate, numberOfPayments) – 1);
} else {
// If interest rate is 0, payment is just principal divided by number of payments
monthlyPayment = loanAmount / numberOfPayments;
}
// Calculate total paid and total interest
totalAmountPaid = monthlyPayment * numberOfPayments;
totalInterestPaid = totalAmountPaid – loanAmount;
// Display results
monthlyPaymentP.textContent = formatCurrency(monthlyPayment);
detailsSpan[0].textContent = "Total Principal Paid: " + formatCurrency(loanAmount);
detailsSpan[1].textContent = "Total Interest Paid: " + formatCurrency(totalInterestPaid);
detailsSpan[2].textContent = "Total Amount Paid: " + formatCurrency(totalAmountPaid);
resultDiv.style.display = 'block'; // Show the results div
}
// Optional: Initialize result display to hidden on page load
document.addEventListener("DOMContentLoaded", function() {
document.getElementById("result").style.display = 'none';
});