Mortgage Repayment Calculator
Calculate your monthly mortgage payments and total interest costs instantly.
Monthly Principal & Interest:
$0.00
Total Loan Principal:
$0.00
Total Interest Paid:
$0.00
Total Amount Repaid:
$0.00
How to Use the Mortgage Repayment Calculator
Planning to buy a home is one of the biggest financial decisions you will ever make. Our mortgage repayment calculator helps you visualize your financial commitment by breaking down your monthly costs. To get an accurate estimate, you need four key pieces of information:
- Loan Amount: The total purchase price of the home.
- Interest Rate: The annual percentage rate (APR) offered by your lender.
- Loan Term: The duration of the loan, typically 15, 20, or 30 years.
- Down Payment: The cash you are paying upfront, which reduces the total loan principal.
Understanding the Mortgage Formula
This calculator uses the standard amortization formula to determine your fixed monthly payment:
M = P [ i(1 + i)^n ] / [ (1 + i)^n – 1 ]
Where M is the monthly payment, P is the principal loan amount, i is the monthly interest rate (annual rate divided by 12), and n is the total number of months in the loan term.
Strategies to Lower Your Monthly Payments
If the results from the calculator are higher than your budget allows, consider these three strategies:
- Increase your down payment: By paying more upfront, you borrow less, which directly reduces the monthly interest accrued.
- Improve your credit score: Lenders offer lower interest rates to borrowers with higher credit scores, which can save you tens of thousands of dollars over 30 years.
- Extend the loan term: Moving from a 15-year to a 30-year mortgage will lower your monthly obligation, though you will pay more in total interest over the life of the loan.
Example Calculation
If you purchase a home for $400,000 with a $80,000 down payment (20%) at a 6% interest rate for 30 years:
- Principal Loan Amount: $320,000
- Monthly Payment: $1,918.56
- Total Interest Paid: $370,682.78
- Total Cost: $690,682.78