Simple Mortgage Calculator | Mortgage Calculator

Knowing your debt capacity is essential before applying for a loan. Therefore, the simple mortgage calculator will perform all the work to assist you in learning your potential monthly payment. Enter the loan’s principal sum, interest rate, and length of time. When creating a budget, knowing your monthly payment might be helpful. You may have enough cash on hand to make more payments. Finally, you may even be able to create a strategy to pay off your debt.

A house purchase also requires sound money management and a certain degree of stability. It is among the most expensive items anyone ever buys. It’s a standard procedure to take out a loan to finance a property due to the high cost. A mortgage is one of your most significant financial commitments, and it often takes longer to pay it off.

It only makes sense to educate yourself on the home-buying procedure as it’s a significant transaction. You must first be eligible for a mortgage. Lenders evaluate your credit history, income, and general financial situation at this point. You are more likely to get reasonable rates and conditions if you are an eligible borrower. You can boost your mortgage savings by doing this. It would help you comprehend the various available payment arrangements to choose the loan that best fits your needs. Finally, it’s critical to understand how the principle, interest rate, and length of your loan affect the cost of your mortgage payment. Check out our guide on Simple Mortgage Calculator below to learn more.

What is a Mortgage Calculator?

With automated programs called mortgage calculators, users may ascertain the financial repercussions of altering one or more factors in a mortgage financing arrangement. Consumers use mortgage calculators to figure out their monthly payments. Mortgage lenders also utilize them to assess a potential borrower’s financial capacity.

The following are some critical factors in a mortgage calculation: 

  • Loan principal
  • Balance.
  • The fixed repayment amounts
  • The number of payments made annually
  • The total number of repayments, 
  • The periodic compound interest rate. 

More sophisticated calculations may account for other mortgage fees like local and state taxes and coverage.

Mortgage Payment Formula

It is advantageous to do a manual mortgage calculation since you will know how various elements interact to affect your monthly rate. These elements include the actual sum you borrow from a bank, the loan’s interest rate, and how long you have to pay off your mortgage.

M = P [ i(1 + i)^n ] / [ (1 + i)^n – 1]. 

Here’s a breakdown of each of the variables:

  • M = Total monthly payment
  • P = The total amount of your loan
  • I = Your interest rate, as a monthly percentage
  • N = The total amount of months in your timeline for paying off your mortgage

How to Use the Mortgage Loan Calculator

You may use our mortgage loan calculator by following these instructions:

  • Input the Loan Amount ($) 
  • Enter the Mortgage Interest Rate (%)            
  • Enter the Number of Years       
  • Put the Monthly Payment                                                   
  • Click on calculate, and the mortgage loan calculator will process your input and display the results.
  • Click on reset if you need to calculate again.

Simple Mortgage Calculator

Understanding your Mortgage Payment

A monthly mortgage payment is probably in your future if you’re interested in purchasing a property and intend to finance it with a mortgage or home loan.

Making minimum repayments is familiar to individuals who have previously leased a house or an apartment. Your revenue won’t be going into your homeowner’s pocket, however, if you’re a homeowner paying a mortgage payment each month. Instead, your one monthly repayment will enable you to pay for several expenses and build equity in your house. This is a significant advantage of purchasing as opposed to renting!

Understanding Your Monthly Mortgage Payment

Do you ever wonder what your monthly payments go toward? What’s Included in Your Monthly Mortgage Payment? This is broken down as follows:


The portion of your monthly bill that goes toward the actual cost of the house you bought is known as the principle. In other words, it’s the amount that you reimburse the lender monthly.

Your home’s equity grows, and the amount of principal you owe reduces with each principal payment you make.


You must pay interest on the loan if you take a loan from a financial institution to buy a house. Interest is a portion of the loan amount that is paid over time to the lender in return for the usage of the funds they loaned.

Real estate and school taxes

You will be liable for paying property and school taxes as a homeowner. If you have previously rented, you most likely have never done this.

Home Loan Insurance

Like many others, you could have placed less than 20% down as a first-time home buyer when you bought your house. As a result, you will have to pay mortgage coverage under your mortgage program. Mortgage interest, or PMI, defends lenders if you cannot repay your loan and fail. It is often necessary for loans with little or no down payment.

Homeowner’s Insurance

One of the most important purchases you’ll make in your life will probably be a house. Therefore, it is crucial to cover it with a home insurance policy.

You must research alternatives to choose the ideal provider and coverage for you as a new homeowner.

Typical Costs Included in a Mortgage Payment

A mortgage payment comprises four primary expenses: principle, interest, taxes, and coverage. They add up to the monthly mortgage payment that you make.

How to Calculate your Mortgage Payments

How to Calculate your Mortgage Payments

You may determine your mortgage payments by using the procedures below:

Calculate the principle of your mortgage

The mortgage principal is the sum of the original loan.

For instance, someone with $100,000 in cash may spend 20% on a $500,000 house. But to finalize the transaction, he will need to borrow $400,000 from the bank. The loan’s principal amount is $400,000

Determine the yearly interest rate.

The interest rate is a percentage-based cost that a bank assesses for borrowing money. For mortgages, lenders issue an annual interest rate. You will need the quarterly interest rate to manually calculate the monthly mortgage payment. Double the yearly interest rate by twelve (the number of months in a year). For instance, the monthly interest rate would be 0.33 percent if the yearly interest rate was 4 percent (0.04/12 = 0.0033).

Determine the total amount of payments.

The most typical fixed-rate mortgage lengths are 15 and 30 years. Multiply the years by 12 to find the monthly payments you must make (number of months in a year).

A 30-year mortgage would need 360 payments per month, but a 15-year mortgage would need 180 payments per month, or precisely half as much.

Fill out the equation using the values.

If you prefer to perform the arithmetic by hand, you may use the following calculation to get your monthly mortgage payment, excluding taxes and insurance:

M = P [ i(1 + i)^n ] / [ (1 + i)^n – 1]

  • P = principal loan amount
  • i = monthly interest rate
  • n = number of months required to repay the loan

If applicable, you may include the quarterly property tax and homeowners’ insurance rate after determining M (the monthly mortgage payment). These expenses are constant and unaffected by the amount of bank credit you have. They may, therefore, be included in the monthly price.

How a Mortgage Calculator Can Help

Establishing your monthly home payment is essential when you create your housing budget since it will likely be your highest recurrent cost. Our Mortgage Calculator lets you determine your potential mortgage payment while looking for a buyer loan or refinancing. Alter the information you put into the calculator to examine different situations. Using the calculator, you may choose:

  • If the loan term is appropriate: a 30-year fixed-rate mortgage is generally the best option if your spending plan is set. Although you’ll spend more interest on these loans, the monthly installments are cheaper. A 15-year fixed-rate mortgage lowers the interest paid you’ll pay if your budget allows for it. However, your monthly payment will increase.
  • If choosing an ARM is a wise move: It may be enticing to choose an extendable mortgage when rates climb (ARM). ARMs often have lower initial rates than their traditional equivalents. The best option could be a 5/6 ARM, which has a fixed rate for five years before adjusting every six months. This is true if you intend to live in your house for a short period. But be mindful of how much your monthly repayments can alter after the promotional rate ends.
  • If your expenditure exceeds your income: The mortgage calculator gives you a general idea of the monthly payment amount, including property taxes.
  • Down payment requirements: While 20% is often considered the needed down payment, it is unnecessary. Many debtors just put down 3 percent.

What this Mortgage Refinance Calculator Does

This calculator calculates your monthly mortgage payment and gives you a schedule of those payments. The calculator also displays the amount of money and the years you may prepay.

It’s also ideal to use this mortgage refinancing calculator to assess your eligibility for a house mortgage depending on your income and spending.

Why Use the Mortgage Loan Calculator?

Due to the following advantages, you may use the mortgage loan calculator:

By experimenting with different circumstances, mortgage calculators help you to learn a lot. 

This will enable you to learn more about how a mortgage works. This involves being aware of the standards that banks base their computations on. After figuring out the maximum interest rate and payback time, you may pick what you can afford. In other words, using these calculators, you may select from the conditions and negotiate them to your benefit.

Budget planning is made simple by them.

These mortgage calculators may help you understand what to anticipate when buying a home. Can you afford the home, given your budget? With mortgage calculators, you may make well-informed choices while looking for a home or piece of land. The calculator will estimate how much funds you need to save if you cannot pay the price of a particular house.

You might save money.

You must choose the mortgage conditions that are best for you before applying. This will allow you to figure out several factors, like amortization, interest rates, and deposit. When it comes time to negotiate your mortgage, this might be helpful.

Make huge time savings.

You may determine your borrowing capacity using a mortgage calculator to provide a preliminary estimate. It implies that you don’t need to hire a broker or banker to determine if you qualify for a loan. Using a mortgage calculator, you may evaluate various situations and compare your possibilities.

Frequently Asked Questions

What is the easiest way to calculate a mortgage payment?

Using our Simple Mortgage Calculator, which, as noted above, is the most straightforward approach to determine a mortgage payment.

What is the monthly payment on a $400000 mortgage?

Your monthly mortgage payment for a 30-year mortgage at a fixed interest rate of 4 percent may be $1,909.66, while your payment for a 15-year mortgage would be $2,958.75.

The table below can also estimate your monthly payments by interest rate.

InterestMortgage termMonthly payments
3.0%15 years$2,762.33
3.0%30 years$1,686.42
3.25%15 years$2,810.68
3.25%30 years$1,740.83
3.5%15 years$2,859.53
3.5%30 years$1,796.18
3.75%15 years$2,908.89
3.75%30 years$1,852.46
4.0%15 years$2,958.75
4.0%30 years$1,909.66

How can I pay off my 30-year mortgage in 15 years?

The following strategies can help you pay off your 30-year mortgage in 15 years: 

  • Make additional payments each month; 
  • Switch to biweekly repayments; 
  • Refinancing with a shorter-term mortgage; 
  • Recast your mortgage; 
  • Choose loan modification; 
  • Pay off other bills; 
  • Scale down.

How is a 30-year mortgage calculated?

The number of payments for your loan may get calculated by multiplying the years remaining on your loan term by 12 (the number of months in a year). A 30-year fixed mortgage, for instance, would need 360 payments (30×12=360).

What is the 28 36 rule?

The 28/36 rule may determine how much your salary could affect your mortgage. This guideline states that your mortgage payment needn’t be more than 28% of your pre-tax monthly earnings and 36% of your debt load. The debt-to-income (DTI) ratio is another name for this.

The 28 36 rule can also get seen in the chart below.

Can I borrow 4.5 times my salary?

Yes. Whether you are an employee, independent contractor, limited business manager, or freelancer, most creditors will lend 4.5 times your yearly wage.

How much loan can I get on a 35000 salary?

You can certainly afford a loan of $105,000 if you’re single and earn $35,000 per year.

What is the monthly payment on a $500 000 mortgage?

Your monthly mortgage payment on a 30-year mortgage maybe $2,387.08 per month at a 4 percent fixed interest rate. A 15-year loan might run you $3,698.44 every month.

What is the monthly payment on a 300k mortgage?

You would pay $2,071.74 per month for a 15-year loan on a $300,000 mortgage with a 3 percent APR and $1,264.81 monthly for a 30-year loan, not counting escrow. The location of your house, the insurer, and other factors affect the escrow charges.

How much house can I afford if I make 60000 a year?

The general rule is that you can afford a mortgage if your yearly salary is two to 2.5 times that amount. A $120,000 to $150,000 mortgage at $60,000 is what it is.

How much of a mortgage can I afford based on my salary?

You can typically afford a mortgage that is 2 to 2.5 times your annual profit. Principal, interest, taxes, and insurance make up most of a typical monthly mortgage payment.

How do I calculate my monthly mortgage payment without a calculator?

For mortgages, lenders issue an annual interest rate. You will need the monthly interest rate to calculate the repayments manually. Just multiply the annual interest rate by twelve (the number of months in a year).

How much house can I afford, making $70000 a year?

Therefore, if you make $70,000 a year, you ought to be able to spend a minimum of $1,692 and a maximum of $2,391 every month. Paying a mortgage or rent might be one way to do this.

What is a mortgage payment on a $400 000 house?

Your monthly repayments on a $400,000 mortgage with a 3 percent annual yield (APR) would be $1,686 for a 30-year mortgage and $2,762 for a 15-year mortgage.

Expert Advice

One of the greatest financial obligations you’ll ever make is a mortgage. However, it might be difficult to determine which bargains will cost you the least with so many options available. Therefore, employing a simple mortgage calculator will be a wise decision. It is useful since it outlines your monthly payments as well as the overall cost of the mortgage. Depending on the arrangement, you may just need to provide some basic information, such as the interest rate and fee amount.

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