Mortgage Calculator

A Mortgage Calculator is an economic device that helps home buyers and real estate investors to estimate their monthly mortgage payment based on loan amounts, interest rates and loan period. It is widely used to determine the strength and loan repayment program in real estate, banking and financial planning.

Common Mortgage Calculations:

• Monthly Payment Calculation: It determines how much you pay each month.
• Total Interest Paid: Calculates the total interest cost during the loan period.
• Amortization Schedule: Break payment in main parts and interest parts.
• Extra Payments Impact: Shows how making extra payments reduces loan duration.
• Loan-to-Value (LTV) Ratio: Property helps to assess debt risk based on price.

Key Uses of the Mortgage Calculator:

• Homebuyers: Estimate monthly payment and plan for home strength.
• Real Estate Investors: Analyze mortgage costs for rental housing.
• Banks & Lenders: Help customers understand the loan options.
• Financial Planners: Assistance to structure mortgage loans in the budget.

Key Features of the Mortgage Calculator:

• Accurate Monthly Payment Estimation – uses standard mortgage loan formulas.
• Supports Fixed & Adjustable-Rate Mortgages – Choose between interest types.
• Breaks Down Principal & Interest Payments – Provides an amortization schedule.
• Extra Payment Option – See how additional payments impact loan term.

User-Friendly Interface – Simple input fields for quick calculations.

1. Enter Loan Details

• Loan Amount (e.g., $300,000)
• Interest Rate (e.g., 5% per year)
• Loan Term (e.g., 30 years)

2. Select Loan Type

• Fixed or Adjustable Interest Rate

3. (Optional) Enter Extra Monthly Payments

• Helps calculate early loan payoff

4. Click ‘Calculate’

• The tool applies the mortgage formula and displays the monthly payment.

Example 1: Basic Mortgage Calculation

Input:

• Loan Amount: $300,000
• Interest Rate: 5% per year
• Loan Term: 30 years

Formula:

M=P×(1+r)/ n−1r(1+r)n​

Where:

• MMM = Monthly Payment
• PPP = Loan Amount ($300,000)
• rrr = Monthly Interest Rate (5% ÷ 12 = 0.004167)
• nnn = Total Payments (30 × 12 = 360 months)

Result: $1,610 per month

Example 2: Impact of Extra Monthly Payments

Input:

• Loan Amount: $300,000
• Interest Rate: 5% per year
• Loan Term: 30 years
• Extra Monthly Payment: $200

Result:

• Loan Paid Off 5 years early
• 
  
• Total Interest Saved: $55,000

Here is a Mortgage Calculator Reference Table for common mortgage scenarios:

Mortgage Payment Scenarios

Loan Amount

Interest Rate

Loan Term

Monthly Payment

Total Payment (Including Interest)

₹20,00,000

7%

15 years

₹17,987

₹32,37,670

₹30,00,000

8%

20 years

₹25,093

₹60,22,320

₹40,00,000

9%

25 years

₹33,572

₹1,00,71,600

₹50,00,000

6.5%

30 years

₹31,622

₹1,13,83,920

Mortgage Components

Factor

Description

Loan Amount

The total amount borrowed for the property.

Interest Rate

The percentage charged annually on the loan.

Loan Term

The duration of the loan, typically 10 to 30 years.

Monthly Payment

The fixed amount paid every month, including principal and interest.

Total Payment

The full amount paid over the entire loan period, including interest.