Mortgage Payment Formula:
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Definition: This calculator determines your monthly mortgage payment and total loan cost in a fun, gamified way.
Purpose: Helps homebuyers understand mortgage payments and experiment with different loan scenarios.
The calculator uses the standard mortgage formula:
Where:
Explanation: The formula accounts for compound interest over the life of the loan.
Benefits: Helps you budget for homeownership, compare loan options, and understand how interest rates affect payments.
Tips: Enter the loan amount, interest rate (default 3.5%), and loan term (default 30 years). All values must be > 0.
Q1: What's included in the monthly payment?
A: This calculates principal and interest. Your actual payment may include taxes and insurance.
Q2: How does loan term affect payments?
A: Shorter terms mean higher monthly payments but less total interest paid.
Q3: What's a good interest rate?
A: Rates vary by market conditions and credit score. Compare current averages.
Q4: Can I calculate extra payments?
A: Try our Advanced Mortgage Calculator for payment scenarios.
Q5: How accurate is this calculator?
A: It provides estimates. For exact figures, consult your lender.