Mortgage Payment Calculator

Mortgage Payment Calculator

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A fast and simple mortgage payment calculator online web app that gives you data fast & easy. Perfect if you are in search of a reliable, fast and intuitive free mortgage calculator with taxes & mortgage calculator with PMI.

Can you afford the mortgage?

This specific mortgage loan calculator, or also known as a home loan calculator, is the tool you want to use prior to getting a mortgage loan. The reason is simple: it'll tell you if you can afford the mortgage or not. Also, if you can afford it, it will precisely calculate your loan with taxes and PMI so you can know what to expect each month.
So, this neat payment calculator will help you determine a realistic budget that suits your lifestyle and expected earnings.

How to use our mortgage payment calculator?

Enter the amount of the monthly payment you want to pay or you think you can afford. Fill out the other important data (taxes, start date, PMI etc.) only if they are different then the default data in the mortgage payment calculator and hit enter.
Then our free mortgage calculator will give precise data about monthly principal & interest, a number of total payments, the total interest that you need to pay and payout date. Not only that, there is a complete amortization schedule up to the final year of payment. Additionally, the amortization schedule can be set to monthly or yearly.
No matter your needs and the type of mortgage loan, the precise and thorough calculations done by our advanced mortgage calculator can save you from a lot of frustration and uncertainties.
Try the online mortgage calculator now for free!

Figuring Out What You Can Afford

Buying a home is a huge investment, and the decisions you make now could haunt you for a long time, 30 years to be exact. Before you enter into any mortgage agreement, you should know what type of home you can afford and be familiar with loan terms and how they affect the repayment of the loan. At the very least, you should have a good idea of what kind of payment you can realistically afford each month. Be sure to calculate insurance and land taxes into the payment as well.

A great tool

A mortgage calculator is a great tool that you can use to see how much you can realistically afford. Before you start punching numbers into a calculator, however, you need to have a budget. To create a realistic budget, keep a notebook with you and jot down everything that you spend. Include bills, restaurant tabs, transportation expenses, entertainment, etc. Track everything for an entire month. This will give you a realistic budget. You may be wondering why you can’t simply write down your bills and formulate a budget that way. You can, but you will probably leave out daily expenses that will affect your ability to make your mortgage payment.

... Remember: be sure to allow for expenses that will be tacked to your mortgage payment. Your payment could end up being hundreds of dollars more than what you figured with the calculator after you add on land taxes and insurance payments.

After you formulate a budget, use a mortgage calculator to see what you can afford. If you think you can afford a $700 monthly payment, enter this amount into the payment field of the calculator and it will then automatically fill in the other fields so that you can see how much you can borrow.

You should always use a mortgage calculator when shopping for a home. It can help you compare the cost of buying different homes which will help you immensely during the selection process. A calculator can also give you all of the information that you need regarding a loan and may prompt you to seek more favorable terms.

Whenever you shop for a new home, you should shop for a new home loan as well. Gather as many loan offers as you can and compare each using a loan calculator. Doing your homework can save you a lot of money and heartache in the long run. Think about this: a difference of only 1.5% interest on a 30 year, $100,000 will cost you $39,980 in interest over the course of the loan. It’s your money. Use a mortgage calculator to learn how you can hold onto more of it.

How do we calculate?

If you would like to know how to calculate mortgage payment on your own, the equation is:

MP=P[r(1+r)^n/((1+r)^n)-1]

  • MP = monthly payment;
  • P = principal;
  • r = monthly interest rate**
  • n = number of months you will have to repay your loan for.

**To calculate your monthly interest rate simply divide the annual interest rate by 12.

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Example calculation

Let's do an example calculation. To do that, we need to know: the principal amount, monthly interest rate, loan period/number of payments. You can find this information in your mortgage loan agreement. For our purposes, we will assume the following numbers:

  • our principal (P) equals 100 000 EUR;
  • our loan period is 20 years - that is 240 months, therefore "n" = 240;
  • the annual interest rate amounts to 5%, this divided;
  • by 12 equals 0,004 (0,05/12) and this is our "r".

Now, we can get on with the calculation:

MP=100 000[0,004(1+0,004) ^ 240/(1+0,004)^240-1]

To make it easier, we will add 1 to the "r"

MP=100 000(0,004*1,004 ^ 240/(1,004^240)-1)

In the next step we have to raise the "(1+r)" (in our example 1,004) to the power of "n" (in our example 240). It is best to use a calculator (put in the value to be raised, than press the xy button and enter the "n" value, then press "=") or an excel sheet (use the POWER function: =power(number to be raised,power). The number in our case is: 2,607. Now our equation would look like this:

MP=100 000(0,004*2,607 / 2,607-1)

Let's simplify again and multiply the "r" times the result of raising to power (the top value) and subtract "1" from the result of raising to power on the bottom:

MP=100 000(0,01043)/1,607

All that is left to do now is to divide the numerator by the denominator...

MP=100 000*0,006490

...and there you go: your monthly payment is 649,03. If you want to know what the total sum of all your payments will amount to, just multiply your monthly payment (MP) by the number of months you will pay your loan (n). In our example it would be:

649,03*240=155767,2

When you know what your total payments will be, you can also calculate how much you will pay the bank for loaning you money. Just subtract your principal from your total payments. In our case the costs of our loan would amount to 55 767,2 EUR.

You can also forget about all this long counting and use our mortgage calculator.