Advanced Mortgage Repayment Calculator
Plan your home purchase with our accurate monthly payment estimator.
How to Use the Mortgage Calculator
Calculating your potential monthly mortgage payment is the first step toward responsible homeownership. To use this tool, enter the total purchase price of the home, your planned down payment, the current annual interest rate offered by your lender, and the length of the loan (usually 15 or 30 years).
The Formula Behind Your Payment
Our calculator uses the standard fixed-rate mortgage formula: M = P [ i(1 + i)^n ] / [ (1 + i)^n – 1 ]. In this equation, M is the monthly payment, P is the principal loan amount, i is the monthly interest rate, and n is the total number of months in the loan term.
Why the Down Payment Matters
Your down payment directly impacts your monthly obligation. For example, if you purchase a $400,000 home with a 20% down payment ($80,000), you only borrow $320,000. Not only does this reduce your principal, but it also typically eliminates the need for Private Mortgage Insurance (PMI), saving you hundreds of dollars every month.
Understanding Interest Rates
Interest rates are determined by your credit score, the economy, and the loan type. Even a 1% difference in interest can mean tens of thousands of dollars over the life of a 30-year mortgage. For instance, on a $300,000 loan, the difference between a 6% and 7% interest rate is roughly $200 per month in interest alone.