Mortgage Calculator
Calculate your monthly mortgage payments based on loan details.
Introduction
Welcome to the Mortgage Calculator! This tool helps you estimate your monthly mortgage payments based on the loan amount, interest rate, and term length.
How to Use
- Enter the total loan amount you wish to borrow.
- Enter the annual interest rate for the mortgage.
- Enter the loan term in years (e.g., 15, 30).
- Click "Calculate Payment" to see your estimated monthly payment.
- Review the summary and notes in the result section.
- Click "Reset" to clear the form and start over.
- Click "Save Entries" to store your calculations locally.
Understanding Mortgage Payments
The monthly mortgage payment is calculated using the formula for a fixed-rate mortgage, which considers the loan amount (principal), annual interest rate, and loan term. The formula used is:
M = P [ r(1 + r)^n ] / [ (1 + r)^n – 1 ]
- M: Monthly payment
- P: Principal (loan amount)
- r: Monthly interest rate (annual rate / 12)
- n: Number of monthly payments (term in years * 12)
This calculation assumes a fixed interest rate and does not include additional costs like property taxes or insurance.
FAQs
What is a fixed-rate mortgage?
A fixed-rate mortgage has an interest rate that remains constant throughout the loan term, resulting in consistent monthly payments.
Does this include taxes and insurance?
No, this calculator only estimates the principal and interest portion of your payment. Taxes, insurance, and other fees are not included.
How accurate is this calculation?
This is an estimate based on standard mortgage formulas. Actual payments may vary based on lender terms and additional costs.
About This Calculator
Built by xAI, this Mortgage Calculator provides a simple way to estimate monthly payments for educational purposes. For precise figures, consult a financial advisor or lender.