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    Mortage Calculator Online


This is very simple mortgage calculator, which will compute your monthly payment. Please enter the loan amount, the down payment, the interest rate and the term of the loan (in years):


Mortgage Payment Calculator
 
Loan balance: $
Interest rate: %
Loan term: years


The monthly payment on a mortage loan will depend on the amount loaned, the interest rate and the term of the loan. The amount loaned is simply the price of the property minus any downpayment, which is normally 20% of the value of the property, or in case of a first time buyer using a FHA loan, a 3% of the property value.

The formula for the monthly mortgage payment is:


where P = monthly payment, L = loaned amount, N = term of the loan (in years), and r = yearly interest rate of the loan.

There are some mathematical curiosities associated to mortage loan payments. For example, there exists something call mortgage acceleration, which consists of breaking down the payments to bimonthly payments instead of monthly payments.

Those bimonthly payments will equal half of what of would be paid otherwise if a monthly schedule was being paid, so the same total amount would be paid every month, but the fact of breaking the payment in two "accelerates" part of the paymment of the interest owed, which has an effect of earlier repayment of the loan. I will be posting a calculator for mortgage acceleration very soon.

Mortgage calculations can be easily done in Excel. Check the following mortgage template


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