Mortgage Calculator

The mortgage calculator determines the monthly mortgage payments based on the home price, down payment, term, and interest rate. It also allows you to include the property tax, home insurance, PMI, and HOA fees in the calculation.

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 Include Taxes, Insurance, HOA fees?
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Total Monthly Pay:  

Mortgage Summary:

House Price
Down Payment
Loan Amount
Total of Mortgage Payments
Total Interest
Monthly Total
Mortgage Payment
Property Tax
Home Insurance
PMI
HOA Fees
Total Payment

What is Mortgage Calculator?

The mortgage calculator is a financial tool that estimates the monthly payments for your home loan. The tool also lets you include the taxes, insurance, PMI, and HOA fees in the mortgage calculation.

Mortgage Calculator

How to Use the Mortgage Calculator?

  1. First, input the home price that you are planning to purchase.
  2. Now input the down payment. There are two options to enter it. Either you can enter the direct amount or you can enter the percentage.
  3. When you enter the down payment, the tool automatically subtracts the down payment amount from the home price and shows the final loan amount on your screen. You can also manually enter the loan amount to adjust the down payment.
  4. Input the loan term in years or months and the interest rate in percentage.
  5. Lastly, press the 'Calculate' button to generate the final results.
  6. Finally, the tool returns the monthly pay and mortgage summary including the total mortgage payments and interest amount.
  7. Also, there is a checkbox that includes additional taxes, insurance, PMI, and HOA fees in the final calculation.
  8. Enter all the additional values and press the 'Calculate' button.
  9. As a result, the tool shows the full summary of the mortgage payments including the taxes, insurance, PMI, and HOA fees.
  10. Moreover, use the 'Reset' button for the new calculation.

Mortgage Payment Formula

The monthly mortgage payment is calculated using the following formula:

M =  P × 
i × (1 + i)n
(1 + i)n - 1

Where,
M = Monthly mortgage payment,
P = Principal loan amount,
i = Rate of interest per month,
n = Number of monthly payments over the life of the loan.

Let's take an example.

Example:

Suppose, a person wants to take a home loan of $223,000 with an annual interest rate of 7.5% for 15 years. Calculate the monthly mortgage payment for the given data.

Solution:

Here,
P = $223,000,
i = 7.5%,
n = 15.

1. Convert the annual interest rate into the monthly interest rate.

Annual interest rate (i) = 7.5% = 7.5/12 = 0.625.

2. Convert the loan term years into months.

Loan term (n) = 15 years = 15 × 12 = 180 months.

3. Put all the values in the formula.

M =  P × 
i × (1 + i)n
(1 + i)n - 1
M =  $223,000 × 
0.625 × (1 + 0.625)180
(1 + 0.625)180 - 1

M = $2,067.24