Sbi Fd Interest Rate Calculator

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Mortgage Repayment Calculator

Estimate your monthly mortgage payments and total interest costs.

30 Years 20 Years 15 Years 10 Years
Estimated Monthly Payment
Principal Amount
Total Interest Paid
Total Cost of Loan

Understanding How Your Mortgage is Calculated

Buying a home is often the largest financial decision a person will make. Using a mortgage calculator is an essential first step in the home-buying process. It helps you understand exactly how much house you can afford by breaking down the complex amortization formulas lenders use into a clear monthly obligation.

This calculator determines your monthly principal and interest payment based on four key factors:

  • Home Price: The total purchase price of the property.
  • Down Payment: The upfront cash you pay toward the home. A larger down payment reduces your loan principal and monthly costs.
  • Interest Rate: The annual cost of borrowing money, expressed as a percentage. Even a small difference of 0.5% can save (or cost) you tens of thousands of dollars over the life of a loan.
  • Loan Term: The duration of the loan. A 30-year term is standard, offering lower monthly payments but higher total interest costs compared to a 15-year term.

The Amortization Formula Explained

While the monthly payment might look like a simple fee, the math behind it is known as "amortization." In the early years of your mortgage, the majority of your payment goes toward interest, with only a small fraction reducing your principal balance. As time goes on, this shifts, and more of your payment goes toward building equity in your home.

Why Your Interest Rate Matters

The interest rate is arguably the most critical variable in this calculation. For example, on a $300,000 loan, the difference between a 6% and a 7% interest rate changes your monthly payment by nearly $200. Over 30 years, that single percentage point adds up to over $70,000 in extra costs.

Tips for Lowering Your Mortgage Payment

If the calculated payment is higher than your budget allows, consider these strategies:

  • Increase your down payment to lower the principal amount.
  • Improve your credit score to qualify for a better interest rate.
  • Shop around with different lenders to find the lowest rate.
  • Consider a less expensive property to keep your Debt-to-Income (DTI) ratio healthy.
function calculateMortgage() { // 1. Get input values strictly using getElementById var priceInput = document.getElementById("homePrice").value; var downInput = document.getElementById("downPayment").value; var rateInput = document.getElementById("interestRate").value; var termInput = document.getElementById("loanTerm").value; // 2. Validate inputs if (priceInput === "" || downInput === "" || rateInput === "") { alert("Please fill in all fields (Home Price, Down Payment, and Interest Rate) to calculate."); return; } var price = parseFloat(priceInput); var down = parseFloat(downInput); var rate = parseFloat(rateInput); var termYears = parseInt(termInput); if (isNaN(price) || isNaN(down) || isNaN(rate) || isNaN(termYears)) { alert("Please enter valid numbers."); return; } if (price <= 0) { alert("Home Price must be greater than zero."); return; } // 3. Perform Calculations // Loan Amount = Price – Down Payment var principal = price – down; // If down payment is greater than price if (principal < 0) { alert("Down payment cannot be greater than the home price."); return; } // Monthly Interest Rate (r) = Annual Rate / 100 / 12 var monthlyRate = rate / 100 / 12; // Total Number of Payments (n) = Years * 12 var numberOfPayments = termYears * 12; var monthlyPayment = 0; // Handle edge case where interest rate is 0 if (rate === 0) { monthlyPayment = principal / numberOfPayments; } else { // Standard Mortgage Formula: M = P [ i(1 + i)^n ] / [ (1 + i)^n – 1 ] // Using Math.pow for exponents var x = Math.pow(1 + monthlyRate, numberOfPayments); monthlyPayment = (principal * x * monthlyRate) / (x – 1); } var totalPayment = monthlyPayment * numberOfPayments; var totalInterest = totalPayment – principal; // 4. Update the DOM with results // Formatter for currency var formatter = new Intl.NumberFormat('en-US', { style: 'currency', currency: 'USD', minimumFractionDigits: 2 }); document.getElementById("displayMonthly").innerHTML = formatter.format(monthlyPayment); document.getElementById("displayPrincipal").innerHTML = formatter.format(principal); document.getElementById("displayInterest").innerHTML = formatter.format(totalInterest); document.getElementById("displayTotalCost").innerHTML = formatter.format(totalPayment); // Show the result container document.getElementById("resultContainer").style.display = "block"; }

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