Pay After Taxes Calculator

Mortgage Repayment Calculator

Estimate your monthly payments and total interest costs.

function calculateMortgageRepayments() { var loanAmount = parseFloat(document.getElementById('mortgage_loanAmount').value); var interestRate = parseFloat(document.getElementById('mortgage_interestRate').value); var loanTerm = parseFloat(document.getElementById('mortgage_loanTerm').value); var downPayment = parseFloat(document.getElementById('mortgage_downPayment').value); if (isNaN(loanAmount) || isNaN(interestRate) || isNaN(loanTerm)) { alert("Please fill in all required fields with valid numbers."); return; } var principal = loanAmount – (isNaN(downPayment) ? 0 : downPayment); if (principal <= 0) { alert("Down payment cannot be greater than or equal to the loan amount."); return; } var monthlyRate = (interestRate / 100) / 12; var numberOfPayments = loanTerm * 12; var monthlyPayment = 0; if (monthlyRate === 0) { monthlyPayment = principal / numberOfPayments; } else { var x = Math.pow(1 + monthlyRate, numberOfPayments); monthlyPayment = (principal * x * monthlyRate) / (x – 1); } var totalCost = monthlyPayment * numberOfPayments; var totalInterest = totalCost – principal; document.getElementById('res_monthlyPayment').innerHTML = "$" + monthlyPayment.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); document.getElementById('res_totalPrincipal').innerHTML = "$" + principal.toLocaleString(); document.getElementById('res_totalInterest').innerHTML = "$" + totalInterest.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); document.getElementById('res_totalCost').innerHTML = "$" + totalCost.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); document.getElementById('mortgage_results').style.display = 'block'; }

Purchasing a home is one of the most significant financial decisions you will ever make. Understanding how your mortgage repayments are calculated can help you budget effectively and choose the right loan product for your needs. This mortgage repayment calculator provides a detailed breakdown of your monthly commitments and the long-term cost of borrowing.

How Monthly Mortgage Payments are Calculated

Most mortgages use an amortization schedule. This means that in the early years of the loan, a larger portion of your monthly payment goes toward paying off the interest, while in the later years, more goes toward the principal balance. The formula used in this calculator is:

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

• M: Total monthly payment
• P: Principal loan amount (Total price minus down payment)
• i: Monthly interest rate (Annual rate divided by 12)
• n: Number of months (Years multiplied by 12)

Key Factors Influencing Your Repayments

1. Loan Principal

The principal is the actual amount of money you borrow from the lender. A larger down payment reduces the principal, which in turn reduces your monthly payments and the total interest paid over the life of the loan.

2. Interest Rates

The interest rate is the cost of borrowing the money. Even a small change in the interest rate (e.g., 0.5%) can result in tens of thousands of dollars in savings or extra costs over a 30-year period.

3. Loan Term

The term is the duration of the loan. While a 30-year term offers lower monthly payments, a 15-year term will significantly reduce the total interest you pay, though your monthly obligation will be higher.

Real-World Example

Consider a home priced at $400,000 with a 20% down payment ($80,000). This leaves a principal balance of $320,000.

• At 6% interest for 30 years: Your monthly payment (Principal + Interest) would be approximately $1,918.56. Total interest paid over 30 years would be $370,682.
• At 6% interest for 15 years: Your monthly payment increases to $2,700.35, but you pay only $166,063 in total interest, saving you over $200,000 in the long run.

Frequently Asked Questions

Does this include property taxes and insurance?

No, this calculator focuses strictly on the Principal and Interest (P&I). Depending on your location and lender requirements, you may also need to budget for Private Mortgage Insurance (PMI), property taxes, and homeowners association (HOA) fees.

How can I lower my monthly payments?

You can lower your payments by providing a larger down payment, securing a lower interest rate through a better credit score, or opting for a longer loan term (though this increases total interest paid).

What is the benefit of extra repayments?

Making extra payments directly toward your principal can drastically reduce the length of your loan and the total interest you pay. Many homeowners aim to make one extra full payment per year to shave years off their mortgage.