Loan Repayment Calculator with Different Interest Rates

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30 Years 20 Years 15 Years 10 Years
Estimated Monthly Payment
$0.00
Principal & Interest $0.00
Property Taxes $0.00
Home Insurance $0.00
HOA Fees $0.00
Loan Amount $0.00
Total Interest Paid $0.00
Total Cost of Loan $0.00

Understanding Your Mortgage Payment

Buying a home is one of the largest financial decisions you will make. Using a mortgage calculator is essential to ensure that your monthly budget aligns with your long-term financial goals. This calculator breaks down the principal, interest, taxes, and insurance (PITI) to give you a clear picture of your monthly obligations.

How Is a Mortgage Payment Calculated?

Your total monthly mortgage payment is composed of several key factors:

  • Principal: The portion of the payment that goes toward paying down the original amount borrowed.
  • Interest: The cost of borrowing money, determined by your Annual Percentage Rate (APR).
  • Taxes: Property taxes assessed by your local government, often bundled into your monthly payment via an escrow account.
  • Insurance: Homeowners insurance protects your property against damage and is usually required by lenders.
  • HOA Fees: If you live in a community with a Homeowners Association, these monthly dues are an additional cost to consider.

Impact of Interest Rates and Loan Terms

Even a small difference in your interest rate can significantly affect your monthly payment and the total interest paid over the life of the loan. For example, on a $300,000 loan, a 1% increase in interest rate can increase your monthly payment by hundreds of dollars.

Similarly, the loan term matters. A 30-year mortgage offers lower monthly payments but results in higher total interest costs compared to a 15-year mortgage. Use the calculator above to compare scenarios and find the best fit for your budget.

Amortization Explained

In the early years of a fixed-rate mortgage, the majority of your payment goes toward interest. As time passes, a larger portion is applied to the principal balance. This process is known as amortization. Understanding this schedule helps you determine how quickly you are building equity in your home.

function calculateMortgage() { // 1. Get Input Values var homePrice = parseFloat(document.getElementById("mpcHomePrice").value); var downPayment = parseFloat(document.getElementById("mpcDownPayment").value); var interestRate = parseFloat(document.getElementById("mpcInterestRate").value); var loanTermYears = parseInt(document.getElementById("mpcLoanTerm").value); var annualTax = parseFloat(document.getElementById("mpcPropertyTax").value); var annualInsurance = parseFloat(document.getElementById("mpcInsurance").value); var monthlyHOA = parseFloat(document.getElementById("mpcHOA").value); // 2. Validation if (isNaN(homePrice) || homePrice < 0) homePrice = 0; if (isNaN(downPayment) || downPayment < 0) downPayment = 0; if (isNaN(interestRate) || interestRate < 0) interestRate = 0; if (isNaN(annualTax) || annualTax < 0) annualTax = 0; if (isNaN(annualInsurance) || annualInsurance < 0) annualInsurance = 0; if (isNaN(monthlyHOA) || monthlyHOA < 0) monthlyHOA = 0; // 3. Core Calculations var loanAmount = homePrice – downPayment; if (loanAmount 0) { // Formula: M = P [ i(1 + i)^n ] / [ (1 + i)^n – 1 ] var x = Math.pow(1 + monthlyInterestRate, totalPayments); monthlyPI = loanAmount * ((monthlyInterestRate * x) / (x – 1)); } else { monthlyPI = loanAmount / totalPayments; } var monthlyTax = annualTax / 12; var monthlyInsurance = annualInsurance / 12; var totalMonthlyPayment = monthlyPI + monthlyTax + monthlyInsurance + monthlyHOA; var totalInterestPaid = (monthlyPI * totalPayments) – loanAmount; if (totalInterestPaid < 0) totalInterestPaid = 0; var totalCostOfLoan = loanAmount + totalInterestPaid; // 4. Update DOM with Results // Helper for currency formatting var fmt = new Intl.NumberFormat('en-US', { style: 'currency', currency: 'USD' }); document.getElementById("mpcTotalMonthly").innerHTML = fmt.format(totalMonthlyPayment); document.getElementById("mpcResultPI").innerHTML = fmt.format(monthlyPI); document.getElementById("mpcResultTax").innerHTML = fmt.format(monthlyTax); document.getElementById("mpcResultIns").innerHTML = fmt.format(monthlyInsurance); document.getElementById("mpcResultHOA").innerHTML = fmt.format(monthlyHOA); document.getElementById("mpcLoanAmount").innerHTML = fmt.format(loanAmount); document.getElementById("mpcTotalInterest").innerHTML = fmt.format(totalInterestPaid); document.getElementById("mpcTotalCost").innerHTML = fmt.format(totalCostOfLoan); } // Initialize on load with default values window.onload = function() { calculateMortgage(); };

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