# Mortgage Calculator

## \$1,115.57 / Month

### Mortgages

A mortgage is a loan secured by a property usually a real estate property. A real estate mortgage usually includes the following key components:

• Loan Amount the amount borrowed from a lender or bank. The maximum loan amount one can borrow normally correlates with household income or affordability. To estimate an affordable amount, please use our House Affordability Calculator.
• Down Payment the upfront payment of the purchase, usually in a percentage of the total price. In the US, if the down payment is less than 20% of the total property price, typically, private mortgage insurance (PMI) is required to be purchased until the principal arrives at less than 80% or 78% of the total property price. The PMI rate normally ranges from 0.3%-1.5% (generally around 1%) of the total loan amount, depending on various factors. A general rule-of-thumb is that the higher the down payment, the more favorable the interest rate.
• Loan Term the agreed upon length of time the loan shall be repaid in full. The most popular lengths are 30 years and 15 years. Normally, the shorter the loan term, the lower the interest rate.
• Interest Rate the rate of interest charged by a mortgage lender. It can be “fixed” (otherwise known as a fixed-rate mortgage, or FRM), or “adjustable” (otherwise known as an adjustable rate mortgage, or ARM). The calculator above is only usable for fixed rates. For ARMs, interest rates are generally fixed for a period of time, after which they will be periodically “adjusted” based on market indices. ARMs transfer part of the risk to borrowers. Therefore, the initial interest rates are normally 0.5% to 2% lower than FRM with the same loan term. Mortgage interest rates are normally expressed in Annual Percentage Rate (APR), which is sometimes called nominal APR or effective APR. It is the interest rate expressed as a periodic rate multiplied by the number of compounding periods in a year. For example, if a mortgage rate is 6% APR, it means the borrower will have to pay 6% divided by twelve, which comes out to 0.5% in interest every month.

The most common way to repay a mortgage loan is to make monthly, fixed payments to the lender. The payment contains both the principal and the interest. For a typical 30-year loan, the majority of the payments in the first few years cover the interest.

### Costs Associated with Mortgages and Home Ownership

Commonly, monthly mortgage payments will consist of the bulk of the financial costs associated with owning a house, but there are other important costs to keep in mind. In some cases, these costs combined can be more than the mortgage payments. Be sure to keep these costs in mind when planning to purchase a home.

Because the recurring costs perpetuate throughout the lives of mortgages (exception being PMI), they are a significant financial factor. Property Taxes, Home Insurance, HOA Fee, and Other Costs increase with time as a byproduct of moderate inflation. There are optional inputs within the calculator for annual percentage increases. Using these wisely can result in more accurate calculations.

• Property Taxes a tax that property owners pay to governing authorities. In the U.S., property tax is usually managed by municipal or county government. The annual real estate tax in the U.S. varies by location, normally ranging from 1% to 4% of the property value. In some extreme cases, the tax rate can be 10% or higher.
• Home Insurance an insurance policy that protects the owner from accidents that may happen to the private residence or other real estate properties. Home insurance can also contain personal liability coverage, which protects against lawsuits involving injuries that occur on and off the property. The cost of home insurance varies according to factors such as location, condition of property, and coverage amount. Typically, the annual cost can range from 0.1% to 5% of the property value.
• Private Mortgage Insurance (PMI) protects the mortgage lender if the borrower is unable to repay. In the U.S. specifically, if the down payment is less than 20% of the property value, the lender will normally require the borrower to purchase PMI until the loan-to-value ratio (LTV) reaches 80% or 78%. PMI price varies according to factors such as down payment, size of the loan, and credit of the borrower. The annual cost typically ranges from 0.3% to 1.5% of the loan amount.
• HOA Fee a fee that is imposed on the property owner by an organization that maintains and improves property and environment of the neighborhoods that the specific organization covers. Common real estate that requires HOA fees include condominiums, townhomes, and some single-family communities. Annual HOA fees usually amount to less than one percent of the property value.
• Other Costs includes utilities, home maintenance costs, and anything pertaining to the general upkeep of the property. Many miscellaneous costs can be deceptively high and it is important to consider them in the big picture. It is common to spend 1% or more of the property value on annual maintenance alone.

While these costs aren’t contained within calculations, they are still important to keep in mind.

• Closing Costs the fees paid at the closing of a real estate transaction. It is not a recurring fee yet it can be expensive. In the U.S., even though not all are applicable, the closing cost on a mortgage can include attorney fee, title service cost, recording fee, survey fee, property transfer tax, brokerage commission, mortgage application fee, points, appraisal fee, inspection fee, home warranty, pre-paid home insurance, pro-rata property taxes, pro-rata homeowner association dues, pro-rata interest, and more. Sellers will share some of these costs. It is not unusual for a buyer to pay \$10,000 in total closing costs on a \$300,000 transaction.
• Initial Renovations Some buyers invest money into renovations, features, or updates before moving in. Examples may be changing the flooring, repainting the walls, or even adding a patio.

Besides these, new furniture, new appliances, and moving costs are also common non-recurring costs of a home purchase.

### Early Repayment and Extra Payments

For many situations, mortgage borrowers may want to pay off mortgages earlier rather than later, either in whole or in part, for reasons including but not limited to interest savings, home selling, or refinancing. Most mortgage lenders allow borrowers to pay off up to 20% of the loan balance each year but few may have prepayment penalties for one-time payoffs, mainly to prevent refinancing too soon (which will affect the lender’s profit). One-time payoff due to home selling is normally exempt from a prepayment penalty. The penalty amount typically decreases with time until it phases out within 5 years. Few lenders charge prepayment penalties regardless of home-selling or refinancing, but be sure to review the loan terms carefully anyway just in case.

Some borrowers may want to pay off their mortgage loan earlier to reduce interest. Typically, there are three ways to do so. The methods can be used in combination or individually.

1. Refinance to a loan with a shorter term Normally, interest rates of shorter term mortgage loans are lower. Therefore, borrowers not only repay their loan balances faster, but receive lower and more favorable interest rates on their mortgages. Keep in mind that this imposes higher financial pressure on the borrower due to higher monthly mortgage payments. Also, there may be fees or penalties involved.
2. Make extra payments the majority of the earliest mortgage payments will be for interest instead of principal on typical long-term mortgage loan. Any extra payments will decrease loan balances, therefore decreasing interest and pay off earlier in the long run. Some people form the habit of paying extra every month, while others pay extra whenever they can. There are optional inputs to include many extra payments, and it can be helpful to compare the results of supplementing mortgages with extra payments and without.
3. Make biweekly (once every two weeks) payments of half month’s payment instead Since there are 52 weeks each year, this is the equivalent of making 13 months of mortgage repayments a year instead of 12. Utilizing this method, mortgages can be paid off earlier. Displayed in the calculated results are biweekly payments for comparison purposes.

The Calculator has the tools to help evaluate the options. Please be aware that the rates on mortgages tend to be very low compared with other types of loans. Also, mortgage interest is tax-deductible, and home equity accumulated may be counted against borrowers when applying for need-based college aid. Be sure to consider comprehensively before paying off mortgage loans earlier.

# Mortgage Payment Calculator

Use our mortgage loan calculator to determine the monthly payments for any fixed-rate loan. Just enter the amount and terms, and our mortgage calculator does the rest. Click on “Show Amortization” Table to see how much interest you’ll pay each month and over the lifetime of the loan. The mortgage loan calculator will also show how extra payments can accelerate your payoff and save thousands in interest charges.

#### Amortization Table

Whether you’re buying a new home or refinancing, our mortgage calculator can do the math for you. Simply enter the amount, term and interest rate to get your monthly payment amount. If you’re refinancing, enter the current balance on your mortgage into the loan amount section and input the new term and new rate that you’ll receive. Then click on the amortization table to see how much interest you’ll pay over the life of the loan. Add extra payments to find out how they can put your payoff schedule on the fast-track and save you thousands.

Keep in mind that this calculator only calculates the mortgage payment. It does not include taxes, insurance or other fees included in the purchase of your home.

Loan amount: The amount of money you’re borrowing. It’s the cost of your new home minus the down payment if you’re buying or the balance on your existing mortgage if refinancing.

Interest rate: The exact rate you will receive on your loan, not the APR.

Loan term: The length of time you have to pay off your loan (30- and 15-year fixed-rate loans are common terms).

Amortization table: Timetable detailing each monthly payment of a mortgage. Details include the payment, principal paid, interest paid, total interest paid and current balance for each payment period.

Monthly extra payment: Extra amount added to each monthly payment to reduce loan length and interest paid.

Yearly extra payment: Extra amount paid each year to reduce loan length and interest paid.

One-time extra payment: Extra amount added once to reduce loan length and interest paid.

# Mortgage Calculator

• Monthly Payment (Principal and Interest)

## Mortgage calculator for your home loan

This mortgage calculator will show how much your monthly mortgage payment would be, including your amortization schedule. See how much you could save by prepaying some of the principal. Find out your home loan breakdown now by using this simple and free mortgage calculator.

NOTE: This calculator updates automatically as you move from field to field using the “tab” key. If you’re entering prepayment information, click the “calculate” button to see the final results.

A mortgage amortization calculator shows how much of your monthly mortgage payment will go toward principal and interest over the life of your loan. The loan calculator also lets you see how much you can save by prepaying some of the principal.

How to use the loan amortization calculator

With HSH.com’s home loan calculator, you enter the features of your mortgage: amount of the principal loan balance, the interest rate, the home loan term, and the month and year the loan begins.

Your initial display will show you the monthly mortgage payment, total interest paid, breakout of principal and interest, and your mortgage payoff date.

Most of your mortgage loan payment will go toward interest in the early years of the loan, with a growing amount going toward the loan principal as the years go by – until finally almost all of your payment goes toward principal at the end. For instance, in the first year of a 30-year, \$250,000 mortgage with a fixed 5% interest rate, \$12,416.24 of your payments goes toward interest, and only \$3,688.41 goes towards your principal. To see this, click on “Payment chart” and mouse over any year.

Clicking on “Amortization schedule” reveals a display table of the total principal and interest paid in each year of the mortgage and your remaining principal balance at the end of each calendar year. Clicking the “+” sign next to a year reveals a month-by-month breakdown of your costs.

Click “calculate” to get your monthly payment amount and an amortization schedule.

The effect of prepayments

Now use the mortgage loan calculator to see how prepaying some of the principal saves money over time. The calculator allows you to enter a monthly, annual, bi-weekly or one-time amount for additional principal prepayment.To do so, click “+ Prepayment options.”

Let’s say, for example, you want to pay an extra \$50 a month. Using the \$250,000 example above, enter “50” in the monthly principal prepayment field, then either hit “tab” or scroll down to click “calculate.” Initial results will be displayed under “Payment details,” and you can see further details in either the “Payment chart” or “Amortization schedule” tabs.

You may also target a certain loan term or monthly payment by using our mortgage prepayment calculator. Of course you’ll want to consult with your financial advisor about whether it’s best to prepay your mortgage or put that money toward something else, such as retirement.

HSH.com has developed a host of other free mortgage calculators to help answer your other questions, such as, “Can I qualify for a mortgage,” “Will prepaying my mortgage help me save money,” “How large of a down payment do I really need,” “What s the best way to pay for my refinance,” and “When will my home no longer be underwater?” See all of HSH.com’s mortgage calculators.

This is the dollar amount of the mortgage you are borrowing. (Hitting “tab” after entering information in any field will automatically update the calculations.)

The loan’s interest rate. Along with the term, this is the key factor used by the mortgage payment calculator to determine what your monthly payment will be. To see where rates are right now, click on the “See today’s average rates” link to the right of the field, where you can also find offers from our advertising partners.

Mortgage loans come in a range of terms. Fixed rate mortgages are most often found in 30, 20, 15 and 10-year terms; Adjustable Rate Mortgages usually have total terms of 30 years, but the fixed interest rate period is much shorter than that, lasting from 1 to 10 years.

To get the most accurate calculations, use the month and year in which your very first mortgage payment was due (or will be due). If you don’t yet have a mortgage, the current month and year will work just fine.

This display shows the monthly mortgage payment, total interest paid, breakout of principal and interest, and your mortgage payoff date.

This display shows you the total principal and interest paid in each year of the mortgage and your remaining principal balance at the end of each calendar year.

While this display table also shows you the total principal and interest paid in each year of the mortgage and your remaining principal balance at the end of each calendar year, clicking the “+” sign next to a year reveals a month-by-month breakdown of your costs.

In this optional section, you can add in a regular monthly prepayment amount, re-set the calculator to show bi-weekly payments and savings, or even do a one-time prepayment to see how it affects the cost of your home loan.

# A Real-Numbers Breakdown of My Actual Mortgage Payment (and Why Online Calculators Can be Misleading)

Any renter with an internet connection and a passion for painting the walls dark green (or black or maybe just wallpapering a bit) can attest to the bit of confusion you feel when first encountering a mortgage calculator or payment estimator online.

You approach the thing with some very rough estimates researched in haste about what a modest little 2-bedroom in an up-and-coming neighborhood might cost. You give a not-totally-inaccurate number of what kind of down payment you might have, but, yeah, it’s inflated just a little bit. (Maybe you’ll get better at saving soon.) You have no idea even what interest rate to enter—you’ve got pretty good credit but haven’t even gotten as far in this very informal home search as to google a little bit about rates—so you use the default one in the calculator. You push the button and find that the number it spits out for your future mortgage payment on your lovely little 2-bedroom condo on the East side of the city is. well, it’s doable. Too doable, you realize. Why isn’t everybody buying a home?

That number an online mortgage calculator will give you is just one piece of the full picture of what it costs, monthly, to buy a home. (This is to say nothing of the other expenses involved, like a down payment and closing costs, plus the ongoing maintenance of being king of your own domain.) The calculator is estimating just your principal and interest payment (“P I”) based on all the factors you punched in—that’s just what you have to pay back to the bank in exchange for them loaning you more money than you’ve ever seen in your life. On top of that there’s possibly mortgage insurance (if you’re making a down payment under 20 percent), and definitely homeowner’s insurance and taxes, which are likely collected in this thing called an escrow account where your lender collects the taxes and premiums from you and pays those bills on your behalf.

## What an Actual Mortgage Payment Can Look Like

To show you how much those other expenses can add up on top of what seems like a doable number that the calculator gives you, I thought I’d share my actual mortgage, in very real numbers.

My husband and I bought a 2-bedroom loft in Atlanta last May, our first home after many years of renting both separately and together. A monthly mortgage payment involves lots of little forever-moving parts and pieces, but here is a snapshot of what our 30-year, fixed-rate mortgage payment looks like right now at almost one year in:

Monthly Escrow: \$409, includes the below:

Homeowner’s Association Fees: \$250 †

### Total Payment Each Month: \$2192

* We’ll own 20% equity in our home by November 2023, and that’s when PMI (private mortgage insurance) goes away. Until then, this is a necessary monthly expense for us.

This is technically not part of our mortgage payment, as it’s a separate bill that is paid to our loft’s association and not to our lender. But for our specific household budget, we keep this expense in the same bucket as our mortgage. If you’re thinking about the affordability of a condo, you need to factor this in, too.

### Principal and Interest

In a fixed-rate mortgage, your P I payment (the figure most mortgage calculators tell you) will never change, although the proportions of it going respectively to paying the principal loan and interest will. Over the past 9 months, an average of \$458 of our P I payment has been going to our principal, and \$928 to interest. That ratio will consistently move more in our favor over time—though it does take a long time. We’ll be paying our principal loan down by about \$500 per month after 3 years of owning our place, and it will take 20 years until we’re paying \$1,000 a month towards the original loan.

So, yes, right now only 450-ish dollars of our \$2,192 monthly housing expense is money we’re not “throwing away,” to use a phrase often cited by wary renters. That 20-ish percent of our total monthly housing expense is the only part going back into our pockets in the form of home equity. The rest is interest, plus the other taxes, insurance and fees.

### Everything Else

The expenses beyond P I vary from place to place and buyer to buyer. Your mortgage insurance payment depends on your credit and the cost of your home, but you can estimate the total to be between 0.3 percent and 1.5 percent, annually, of the original loan amount. Homeowner’s insurance depends on how much you have to insure and how much coverage you need. And your property taxes just depend on where you live.

The parts of our monthly payment beyond principal and interest can (and likely will) go up over time. Maybe not as much as rent does, but still. Your housing costs as a homeowner are hardly a fixed expense.

## Are Mortgage Calculators Accurate?

I mean, technically, yes. They’re accurate. They’re calculators. Even in an uncertain world, you can usually trust computers about numbers. But I think that online mortgage calculators can be seriously misleading in the early stages of buying a home.

As a renter, you have one big line item on your budget: rent. Your total housing expense is a round and uncomplicated number, possibly supplemented with a small amount for renter’s insurance and utilities, depending on how you budget. When you become a homeowner, your “mortgage” (in quotes) is the sum of all of kinds of related payments you make to your lender (and maybe your HOA) each month. But the actual mortgage (no quotes) is technically just that principal and interest part, and if you just swap out your rent for the new number on the mortgage calculator in order to figure out if homeownership is possible for you, you’re doing yourself a disservice by ignoring all the other expenses you’ll be on the hook for.

In order to get a better picture of your future as a homeowner, you’ll need to do a little more legwork. Research into property taxes in the area you’re looking to buy (a real estate agent can help with this), get a quote from a homeowner’s insurance company and, if you’re putting less than 20 percent down, use a PMI calculator to estimate what mortgage insurance might cost you.

# Mortgage Calculator

Calculate your monthly mortgage payment using the free calculator below. A house is the largest purchase most of us will ever make so it’s important to calculate what your mortgage payment will be and how much you can afford. Estimate your monthly payments and see the effect of adding extra payments.

## Where will mortgage rates head next week?

Mortgage experts predict what will happen to rates over the next week — and why.

## How much house can I afford?

Use this calculator to determine how much mortgage you can afford to take out based on your income and expenses.

## Mortgage Basics

This step-by-step guide will help you understand the sometimes-difficult journey to homeownership.

## Loan Calculator

This loan calculator will help you determine the loan monthly payments on a loan. View Calculator

## Amortization Calculator

How much of your monthly payment will go towards the principal and how much will go towards the interest. View Calculator

## 15 or 30 year mortgage?

Lets us help you decide which mortgage loan is right for you. View Calculator

## Debt ratio Calculator

Your debt-to-income ratio can be a valuable number — some say as important as your credit score. View Calculator

### About our Mortgage Rate Tables

About our Mortgage Rate Tables: The above mortgage loan information is provided to, or obtained by, Bankrate. Some lenders provide their mortgage loan terms to Bankrate for advertising purposes and Bankrate receives compensation from those advertisers (our “Advertisers”). Other lenders’ terms are gathered by Bankrate through its own research of available mortgage loan terms and that information is displayed in our rate table for applicable criteria. In the above table, an Advertiser listing can be identified and distinguished from other listings because it includes a “Next” button that can be used to click-through to the Advertiser’s own website or a phone number for the Advertiser.

Availability of Advertised Terms: Each Advertiser is responsible for the accuracy and availability of its own advertised terms. Bankrate cannot guaranty the accuracy or availability of any loan term shown above. However, Bankrate attempts to verify the accuracy and availability of the advertised terms through its quality assurance process and requires Advertisers to agree to our Terms and Conditions and to adhere to our Quality Control Program. Click here for rate criteria by loan product.

Loan Terms for Bankrate.com Customers: Advertisers may have different loan terms on their own website from those advertised through Bankrate.com. To receive the Bankrate.com rate, you must identify yourself to the Advertiser as a Bankrate.com customer. This will typically be done by phone so you should look for the Advertiser’s phone number when you click-through to their website. In addition, credit unions may require membership.

Loans Above \$424,100 May Have Different Loan Terms: If you are seeking a loan for more than \$424,100, lenders in certain locations may be able to provide terms that are different from those shown in the table above. You should confirm your terms with the lender for your requested loan amount.

Taxes and Insurance Excluded from Loan Terms: The loan terms (APR and Payment examples) shown above do not include amounts for taxes or insurance premiums. Your monthly payment amount will be greater if taxes and insurance premiums are included.

### Mortgage Calculator Help

Using an online mortgage calculator can help you quickly and accurately predict your monthly mortgage payment with just a few pieces of information. It can also show you the total amount of interest you’ll pay over the life of your mortgage. To use this calculator, you’ll need the following information:

The dollar amount you expect to pay for a home.

The down payment is money you give to the home’s seller. At least 20% down typically lets you avoid mortgage insurance.

If you’re getting a mortgage to buy a new home, you can find this number by subtracting your down payment from the home’s price. If you’re refinancing, this number will be the outstanding balance on your mortgage.

Mortgage Term (Years)

This is the length of the mortgage you’re considering. For example, if you’re buying new, you may choose a mortgage loan that lasts 30 years. On the other hand, a homeowner who is refinancing may opt of a loan that lasts 15 years.

Estimate the interest rate on a new mortgage by checking Bankrate’s mortgage rate tables for your area. Once you have a projected rate (your real-life rate may be different depending on your overall credit picture) you can plug it into the calculator.

Mortgage Start Date

Select the month, day and year when your mortgage payments will start.

### Mortgage Calculator: Alternative Use

Most people use a mortgage calculator to estimate the payment on a new mortgage, but it can be used for other purposes, too. Here are some other uses:

1. Planning to pay off your mortgage early.

Use the “Extra payments” functionality of Bankrate’s mortgage calculator to find out how you can shorten your term and net big savings by paying extra money toward your loan’s principal each month, every year or even just one time.

To calculate the savings, click “Show Amortization Schedule” and enter a hypothetical amount into one of the payment categories (monthly, yearly or one-time) and then click “Apply Extra Payments” to see how much interest you’ll end up paying and your new payoff date.

2. Decide if an ARM is worth the risk.

The lower initial interest rate of an adjustable-rate mortgage, or ARM, can be tempting. But while an ARM may be appropriate for some borrowers, others may find that the lower initial interest rate won’t cut their monthly payments as much as they think.

To get an idea of how much you’ll really save initially, try entering the ARM interest rate into the mortgage calculator, leaving the term as 30 years. Then, compare those payments to the payments you get when you enter the rate for a conventional 30-year fixed mortgage. Doing so may confirm your initial hopes about the benefits of an ARM — or give you a reality check about whether the potential plusses of an ARM really outweigh the risks.

3. Find out when to get rid of private mortgage insurance.

You can use the mortgage calculator to determine when you’ll have 20 percent equity in your home. This percentage is the magic number for requesting that a lender wave private mortgage insurance requirement.

Simply enter in the original amount of your mortgage and the date you closed, and click “Show Amortization Schedule.” Then, multiply your original mortgage amount by 0.8 and match the result to the closest number on the far-right column of the amortization table to find out when you’ll reach 20 percent equity.

# How To Calculate Mortgage Payments

## Interest and Mortgage Formula Calculation

If you loaned a bank \$100,000 at a 5% interest rate, compounded annually, the bank would pay you \$5,000 per year. So why can’t you get a \$100,000 mortgage and pay the bank \$5,500 a year, let them earn a 10% profit? The reason is that traditional mortgages are designed so you end up owning the house when the mortgage is paid off. Our simple example above would apply to an “interest only” mortgage, where you are really just renting the house from the bank. After 30 years, zero equity. It’s the reverse of your loaning \$100,000 to the bank and earning \$5,000 per year in interest. The bank doesn’t get to keep your \$100,000, they’re just paying for the use of it. In essence, the bank is renting the principal from you, the same way you rent a house from the bank with an interest only mortgage.

The next complication in mortgage interest rate calculations is that interest is compounded. Going back to our loaning the bank money example, lets say you agreed to loan the bank \$100,000 for 10 years, with the interest being compounded onto the principal annually. Using simple interest compounded annually, the situation would look like this.

So after 10 years, the principal has grown by over 50%, from \$100,000 to \$155,132.84. The amount of interest you are earning every year has also grown over 50%, even though the interest rate is fixed, at 5% compounded annually. In order to illustrate the effect compound interest has on mortgage payments, let’s turn the simple ten year loan into a mortgage, where you are working to pay off the principal so that you can own the house. If you were only willing to pay \$5,000/year, you’d never make a dent in the principal, so it would be an interest only mortgage. But let’s say you were willing to pay \$6,000/year. That comes to \$500 a month, but since we’re keeping it simple and only compounding interest once a year, there’s no reason to track the monthly payments. Since the interest gets added back onto the principal at the end of every year, principal goes down very slowly. The mortgage payments would look like this:

So, after ten years you’ve paid the bank \$60,000 on your \$100,000 mortgage, and you still owe them \$88,973.43. That’s the compound interest the bank is charging fighting against your payments, and the only way to pay less interest in the long run is to pay more per year. Lets say you were willing to pay \$12,000 per year, or \$1,000 per month. Would that get the mortgage paid off in ten years?

So, after ten years you’ve paid the bank \$120,000 on your \$100,000 mortgage, and you still owe them another \$22,814.05, but at least the end is in near, and in another two years the loan will be paid off.

With mortgages, we want to find the monthly payment required to totally pay down a borrowed principal over the course a number of payments.The standard mortgage formula is:

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

Where M is the monthly payment. i = r/12. The same formula can be expressed many different way, but this one avoids using negative exponentials which confuse some calculators.

For our \$100,000 mortgage at 5% compounded monthly for 15 years, we would first solve for i as

i = 0.05 / 12 = 0.004167 and n as 12 x 15 = 180 monthly payments

Next we would solve for (1 + i) n = (1.004167) 180 using the x y key on the calculator, which yields 2.11383

Now our formula reads M = P [ i(2.11383)] / [ 2.11383- 1] which simplifies to

M = P [.004167 x 2.11383] / 1.11383 or

M = \$100,000 x 0.00790 = \$790.81

All of the rounding down I did makes a 2 cent difference on the monthly payment, compared with keeping all the digits the calculator can handle. Now, one important feature of the mortgage formula is that it’s the principal is multiplied last, meaning that we can develop a table of mortgage rate multipliers for any fixed time period that will yield a monthly payment simply by multiplying the principal borrowed.

If you’re curious to know how much interest you’d pay the bank over the course of the mortgage,just multiply the amount of the monthly payment by the number of payments and subtract the principal:

(\$791.81 x 180 ) – \$100,000 = \$142,525.80 – \$100,000 = \$42,525.80

The only bright side to paying the bank all of that interest is that in most cases, it’s deductible on your Federal income tax in the in the years that it’s paid. The savings to you depends on what tax bracket you’re in. If you’re only in the 10% tax bracket to start with, you’re only getting a 10% discount on your taxes for carrying a mortgage. If you’re in the 25% tax bracket, you’re getting a 25% discount.

If you want to skip the formula and just read your monthly mortgage payment from a table, I’ve created fixed rate mortgage tables for 15 and 30 year mortgages, covering rates from 4.0% to 5.95%. Note, I use the same numbers from this page in my amortization formula example.

# How to Calculate Your Mortgage Payment

Understanding your mortgage helps you make better decisions. Instead of just taking whatever you get, it pays to look at the numbers behind any loan – especially a big loan like a home loan.

To calculate a mortgage, you’ll need a few details about the loan. Then, you can do it all by hand or use free online calculators (or a spreadsheet) to crunch the numbers.

Most people only focus on the monthly payment, but there are other important details that you need to pay attention to.

We’ll start with calculating the payment, and we’ll also look at how much you pay in interest ​and how much you actually pay off – in other words, how much of your house you’ll actually own.

### The Inputs

To calculate (and understand) the payments, gather the following information about a potential mortgage loan:

• The loan amount (or principal)
• The interest rate on the loan (not necessarily the APR, which also includes closing costs)
• The number of years you have to repay (also known as the term)
• The type of loan: fixed rate, interest only, etc.
• The market value of the home

### Calculations for Different Loans

The calculation you use will depend on the type of loan you have. Most home loans are fixed-rate loans (for example, standard 30-year or 15-year mortgages).

For those loans, the formula is:

Loan Payment Amount / Discount Factor

You’ll use the following values:

Example: assume you borrow \$100,000 at 6% for 30 years to be repaid monthly. What is the monthly payment (P)?

• D 166.7916 ( <[(1 .005)^360] - 1>/ [.005(1 .005)^360])
• P A / D 100,000 / 166.7916 599.55

### How Much Goes Towards Interest?

Your mortgage payment is important, but you’ll also want to know how much you lose to interest each month. A portion of each monthly payment is your interest cost, and the remainder goes towards paying down your loan (you might also have taxes and insurance included in your monthly payment).

An amortization table can show you – month-by-month – exactly what happens with each payment. You can create an amortization table by hand, or use a free calculator or spreadsheet to do the job for you. Take a look at how much total interest you pay over the life of your loan. With that information, you can decide if you want to save money by:

• Borrowing less
• Paying extra each month
• Finding a lower interest rate
• Choosing a shorter term loan (15 years instead of 30 years, for example)

### Interest Only Loan Payment Calculation Formula

Interest-only loans are much simpler to calculate. For better or worse, you don’t actually pay down the loan with each required payment (although you can usually pay extra each month if you want).

Example: assume you borrow \$100,000 at 6% interest-only with monthly payments.

What is the payment (P)?

Loan Payment Amount x (Interest Rate / 12)

Check your math with the Interest Only Calculator.

Your interest only payment is \$500, and it will remain the same until:

1. You make additional payments (which will reduce your loan balance – but your required payment might not change right away), or
2. After a certain number of years you’re required to start making amortizing payments, or
3. You make a balloon payment to pay off the loan entirely

### Figure Out How Much you Own (Equity)

You might also want to know how much of your home you actually own. Of course, you own the home but until it’s paid off, your lender has a lien on the property so it’s not free-and-clear. The amount that’s yours – your home equity – is the home’s market value minus any outstanding loan balance.

There are several reasons you might want to calculate your equity.

Your loan to value (LTV) ratio is important because lenders look for a minimum ratio before approving loans. If you want to refinance or figure out how big your down payment needs to be, you need to know the LTV ratio.

Your net worth is based on how much of your home you actually own. Having a million dollar home doesn’t do you much good if you owe \$999,999 on the property.

You can borrow against your home using second mortgages and home equity lines of credit (HELOCs). But most lenders need to see an LTV below 80% to approve a loan.

### Can you Afford the Loan?

Lenders often offer you the largest loan that they’ll approve you for. This is typically based on their standards for an acceptable debt to income ratio. However, you don’t need to take the full amount – and it’s often a good idea to borrow less.

Before you apply for loans, look at your monthly budget and decide how much you’re comfortable spending on a mortgage payment. After you’ve made a decision, start talking to lenders and looking at debt to income ratios. If you do it the other way around, you might start shopping for more expensive homes (and you might even buy one – which will affect your budget and leave you vulnerable to surprises). It’s better to buy less and have some wiggle room than to suffer just to keep up with payments.

# payment calculator loan

This Loan Payment Calculator computes an estimate of the size of your monthly loan payments and the annual salary required to manage them without too much financial difficulty. This loan calculator can be used with Federal education loans (Stafford, Perkins and PLUS) and most private student loans. (This student loan calculator can also be used as an auto loan calculator or to calculate your mortgage payments.)

This loan calculator assumes that the interest rate remains constant throughout the life of the loan. The Federal Stafford Loan has a fixed interest rate of 6.8% and the Federal PLUS loan has a fixed rate of 7.9%. (Perkins loans have a fixed interest rate of 5%.)

This loan calculator also assumes that the loan will be repaid in equal monthly installments through standard loan amortization (i.e., standard or extended loan repayment). The results will not be accurate for some of the alternate repayment plans, such as graduated repayment and income contingent repayment.

Loan fees are used to adjust the initial loan balance so that the borrower nets the same amount after the fees are deducted.

Some educational loans have a minimum monthly payment. Please enter the appropriate figure (\$50 for Stafford Loans, \$40 for Perkins Loans and \$50 for PLUS Loans) in the minimum payment field. Enter a higher figure to see how much money you can save by paying off your debt faster. It will also show you how long it will take to pay off the loan at the higher monthly payment. You can also calculate private student loan eligibility on comparison sites like Credible.

The questions concerning enrollment status, degree program and total years in college are optional and are designed to evaluate whether the total debt is excessive. The total years in college should include the total number of years in college so far (or projected) corresponding to the loan balance, including previous degrees received.

# French Euro Mortgage Calculator

Figure out your monthly euro mortgage payments and estimate closing costs here:

Update any of the main fields and the other values will calculate. To re-calculate, press enter or click outside of the field you have just edited.

To see how much you can borrow based on a certain monthly payment, enter the monthly payment you want (for a given duration and interest rate) and the loan amount will re-calculate.

Important Notes: This calculator is for guidance only. It does not constitute an offer and does not take into account your personal eligibility for a loan. This calculator assumes monthly payments occuring at the start of each month, no deferred payment periods, a constant interest rate for the duration of the loan and a fully amortised or interest only loan type.

Your ability to qualify for a repayment or interest only French mortgage and the maximum loan amount depend on your personal financial situation. Request your personal decision in principle and detailed quote:

## David Hulston, Sydney, Australia, Purchase of a Paris apartment

After previously dealing directly with French banks, it was a welcome relief to use the services of France Home Finance .

## Best French Mortgage Rates

Find the best interest rates available on the market for your French mortgage here:

## French Interest Rate Indices

Check the latest Euribor and other key French mortgage rate indices here:

## French Property Outlook 2015

Now more than ever is the time to invest in Parisian real estate! We are in the midst of the perfect storm of a weak euro, low French interest rates and stable yet undervalued property prices (for the moment.)

## French Property Outlook 2014

Prices soften, but not always on the homes or apartments you want to buy!

## Buying a Piece of France – Tax and Legal Need to Know, November 2015

Leigh-Alexandra Basha, international solicitor specilized in France, explains the latest tax, legal and accounting evolutions in French real estate :

## Tax Legal Aspects of Buying a Pied à Terre in France

Leigh-Alexandra Basha, international solicitor and expert on French property acquisition, explains what you need to know:

# payment calculator loan

The first step is to enter the details of the proposed car loan in the fields to the left:

• Vehicle Price – The price that you will pay for your vehicle
• Down Payment – The amount of money that you will be putting down yourself on the car
• Trade In – If you will be trading in your current car, put its expected value here
• Owed on Trade – If you will be trading in and owe money on that vehicle, enter the amount here
• Interest Rate – The interest rate that you will pay on the loan
• Sales tax – The amount of sales tax levied in your area, this will be added to the vehicle price
• Term (Months) – The number of months that your loan will run over, typical terms for a car loan are 36, 48 or 60 months
• Start Date – This is the day that you sign your car loan contract, the first payment will come due one month later

Once you enter your details click “Calculate” and your loan information will be generated.

### Understanding the Results

There are four main sections in the results:

#### Loan Summary

This section gives you a brief summary of the proposed auto loan which includes the expected monthly payment, the total cost of the loan, total interest paid over the life of the loan and the date that the loan will be paid off in full. If you are simply trying to determine the monthly payment then this section is all you will need.

#### Cost Breakdown Chart

This pie chart provides a visualization of the total costs showing both the principal and interest paid over the term of your contract.

#### Principal Balances Chart

This chart shows you the balance of your loan at the end of each month over the term. Hovering the mouse over the line will popup a tooltip with the exact balance amount.

#### Amortization Tables

The final section is the amortization tables, there are three tabs here, the first shows your car loan amortized yearly, the second shows the monthly amortization for people who need full details and the third provides some further information breaking down all of the costs individually.

Each row on these amortization tables gives you a snapshot of your loans position at the end of the specified year or month and tells you exactly how much principal and interest you would pay, and the remaining balance at that point in time.

### Final Note

While this auto loan calculator should be highly accurate and give you a solid idea about the costs of a proposed car loan, it is not professional advise and should not be relied upon when making your final purchasing decision. Always talk to a professional directly and fully understand what you are getting into before signing a loan contract.