Mortgage Calculator
Calculate monthly mortgage payments instantly ⚡ 100% free, fast & trusted 🏠 Try it now
Loan Amount$0
Monthly Payment$0
Calculate monthly mortgage payments instantly ⚡ 100% free, fast & trusted 🏠 Try it now
A mortgage calculator is a financial tool that helps you estimate your monthly home loan payment based on the loan amount, interest rate, and repayment term. Instead of guessing how much you will pay every month, this calculator gives you a clear breakdown of principal and interest so you can understand your financial commitment before applying for a home loan. It is commonly used by first-time home buyers, property investors, and anyone planning to refinance an existing mortgage.
When you take a mortgage, you are borrowing money from a lender to purchase property, and you agree to repay it over a fixed period, such as 15, 20, or 30 years. The mortgage calculator estimates your Equated Monthly Installment (EMI), total interest payable, and total repayment amount. For example, if you borrow $200,000 at a 6% annual interest rate for 30 years, the calculator quickly shows your approximate monthly payment and the total interest paid over the life of the loan. This helps you decide whether the loan fits your income and budget.
The mortgage calculator works by applying a standard loan amortization formula to determine your fixed monthly payment. The most commonly used formula for calculating EMI is: EMI = P × r × (1 + r)^n / ((1 + r)^n − 1). In this formula, P represents the loan principal, r is the monthly interest rate, and n is the total number of monthly payments. The annual interest rate is divided by 12 to get the monthly rate, and the loan tenure in years is multiplied by 12 to get the total number of payments.
For example, suppose you take a $300,000 mortgage at a 5% annual interest rate for 20 years. First, convert 5% to a monthly rate: 0.05 ÷ 12 = 0.004167. Then calculate the total number of payments: 20 × 12 = 240 months. The formula processes these values to determine your fixed monthly mortgage payment. The calculator automatically performs this calculation instantly and accurately.
In addition to monthly payment, the tool also calculates total interest paid and total repayment amount. Some advanced mortgage calculators also include property tax, home insurance, and private mortgage insurance (PMI) to provide a more realistic monthly housing cost estimate. This step-by-step process ensures clarity and eliminates manual calculation errors.
A mortgage calculator is useful before purchasing a home, refinancing an existing loan, or comparing loan offers from different lenders. If you are planning to buy a house and want to know how much property you can afford, simply enter your estimated loan amount, interest rate, and tenure. The calculator will show whether the monthly payment aligns with your income and debt-to-income ratio.
It is also helpful when comparing different interest rates. For example, a difference between 6% and 6.5% may seem small, but over 30 years, it can result in thousands of dollars in extra interest. By adjusting the rate in the calculator, you can instantly see the financial impact. Similarly, you can compare a 15-year mortgage versus a 30-year mortgage to evaluate lower total interest versus lower monthly payments.
Real estate investors use mortgage calculators to estimate rental profitability. Homeowners use it to plan early repayments or extra monthly payments to reduce total interest costs. It is a practical decision-making tool for budgeting, loan planning, and financial forecasting.
Mortgage calculations are based on amortization logic, meaning each monthly payment includes both principal and interest. In the early years of the loan, a larger portion of your EMI goes toward interest, while a smaller portion reduces the principal. As time passes, the interest portion decreases and the principal portion increases. This is why total interest paid on long-term mortgages can be substantial.
The total interest paid is calculated as: Total Interest = (EMI × n) − P. Here, EMI is your monthly payment, n is the total number of payments, and P is the principal amount. The total repayment amount is simply EMI multiplied by the number of months. The calculator performs these steps instantly after you enter the required values.
If you make extra payments toward principal, the loan balance reduces faster, and future interest is calculated on a smaller outstanding balance. This shortens the loan tenure and reduces total interest cost. Understanding this logic helps borrowers make smarter decisions, such as choosing shorter terms or making prepayments when financially possible.
Is the Mortgage Calculator accurate?
Yes. The calculator uses standard amortization formulas used by banks and financial institutions. Results are mathematically accurate based on the values entered.
Does it include taxes and insurance?
Basic calculations focus on principal and interest. Some versions allow you to include property taxes, home insurance, and PMI for a complete monthly housing estimate.
Can I calculate different loan terms?
Yes. You can adjust the loan tenure, interest rate, or principal amount to compare multiple mortgage scenarios instantly.
What happens if I make extra payments?
Extra payments reduce the principal faster, lower total interest paid, and may shorten your loan term significantly.
Is my data stored?
No. All calculations are processed locally in your browser. No financial data is saved or shared.