Contents
Free Mortgage Calculator (Estimate Payments)
Mortgage Calculator
Estimate your monthly mortgage payments quickly and easily. Enter your loan details below to see your payment breakdown.
How It Works & FAQ
What is a mortgage?
A mortgage is a long-term loan from a bank or lender to help you buy a home. You repay the loan, plus interest, in regular monthly payments over a set period (the ‘loan term’).
How is this mortgage payment calculated?
This calculator uses the standard formula: M = P[r(1+r)^n] / [(1+r)^n – 1], where ‘P’ is the principal loan amount, ‘r’ is the monthly interest rate (annual rate divided by 12), and ‘n’ is the total number of payments (loan term in years multiplied by 12).
What do ‘principal’ and ‘interest’ mean?
The ‘principal’ is the original amount of money you borrowed. ‘Interest’ is the cost of borrowing that money, charged by the lender as a percentage of the principal. Your monthly payment is a combination of both.
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