Monthly Payment:
Total Interest:
Total Payment (Including Annual Costs):
Payoff Date:
| Year | Interest | Principal | Ending Balance |
|---|
Enter the total amount you plan to borrow for your mortgage.
Input either a fixed dollar amount or percentage for your down payment.
Enter the annual interest rate for your mortgage loan.
Specify the length of your mortgage, typically 15 or 30 years.
Include property tax, home insurance, PMI, and HOA fees for a complete cost picture.
View a detailed year-by-year breakdown of interest, principal, and remaining balance.
See monthly payment, total interest, total payment including annual costs, and payoff date.
Mortgage lending is a common method for financing the purchase of a home or real estate property. The key components that determine mortgage costs and payments include:
- Principal Loan Amount: The total borrowed sum that needs to be repaid.
- Down Payment: The upfront cash amount paid towards the home purchase, reducing the loan principal.
- Interest Rate: The annual percentage charged by the lender on the outstanding loan balance.
- Loan Term: The number of years over which the loan must be fully repaid, typically 15 or 30 years.
Other factors like property taxes, homeowner's insurance, private mortgage insurance (for low down payments), and HOA fees can also impact the overall monthly housing costs.
The core mortgage calculation determines the monthly payment amount required to fully pay off the principal loan balance plus interest over the specified loan term. The formula is:
Monthly Payment = [P * r(1+r)^n] / [(1+r)^n - 1]
Where:
P = Principal Loan Amount
r = Periodic Interest Rate (Annual Rate / 12 for monthly payments)
n = Number of Periodic Payments (Loan Term in Years * 12)
Additional calculations account for the allocation between principal and interest for each periodic payment to create an amortization schedule showing how the loan balance decreases over time. Total interest paid is calculated as the sum of all interest portions from the amortization schedule.