Reviewed by: David Chen, CFA
Last updated: December 2025
Use the 10 Year Mortgage Calculator to quickly estimate your monthly payment, total interest paid, and amortization schedule when opting for a shorter, ten-year repayment term.
10 Year Mortgage Calculator
Detailed Calculation Breakdown
Enter valid inputs and click 'Calculate' to see the detailed steps.
10 Year Mortgage Calculator Formula
Monthly Payment (M) Formula:
$$M = P \frac{i(1 + i)^n}{(1 + i)^n – 1}$$
Where $P$ is Loan Amount, $i$ is Monthly Rate ($R/12$), and $n$ is Total Payments ($T \times 12$).
Formula Source: Investopedia, The Balance
Variables Explained
- Loan Amount (P): The principal amount of money borrowed.
- Annual Interest Rate (R): The yearly interest rate expressed as a percentage.
- Loan Term (T): The length of the loan in years. For a 10-year mortgage, this value is 10.
- Monthly Interest Rate (i): The annual rate divided by 12 (monthly compounding).
- Total Payments (n): The total number of monthly payments over the term ($T \times 12$).
Related Financial Calculators
- 15 Year Mortgage vs. 30 Year Mortgage Calculator
- Annual Percentage Rate (APR) Calculator
- Loan Amortization Schedule Tool
- Early Mortgage Payoff Calculator
What is a 10 Year Mortgage Calculator?
A 10 year mortgage calculator is a specialized financial tool designed to estimate the monthly payments required to fully repay a loan over a short, fixed period of 10 years. This term is significantly shorter than the standard 30-year or 15-year options, meaning the borrower will pay off the debt much faster.
Choosing a 10-year term typically results in a higher monthly payment compared to longer terms. However, the major benefit is the substantial savings on total interest paid over the life of the loan. This calculator helps prospective homeowners or refinancers determine if the accelerated payment schedule is financially feasible for their budget.
How to Calculate a 10 Year Mortgage (Example)
- Determine the Variables: Assume a Loan Amount (P) of $100,000, an Annual Interest Rate (R) of 6.0%, and a Term (T) of 10 years.
- Calculate Monthly Rate ($i$): Convert the annual rate to a decimal and divide by 12. $i = (6.0 / 100) / 12 = 0.005$.
- Calculate Total Payments ($n$): Multiply the term by 12. $n = 10 \text{ years} \times 12 \text{ months/year} = 120$.
- Apply the Formula: Using the formula $M = P \frac{i(1 + i)^n}{(1 + i)^n – 1}$, the calculation resolves to: $M = 100,000 \times \frac{0.005(1.005)^{120}}{(1.005)^{120} – 1}$.
- Solve for M: The resulting Monthly Payment (M) is approximately $1,110.21.
Frequently Asked Questions (FAQ)
A: The primary reason is to save significant money on interest. While the monthly payments are higher, the interest accrues over a much shorter period, drastically reducing the total cost of the loan.
Q: Are the interest rates lower for a 10-year mortgage?A: Yes, generally. Lenders perceive shorter-term loans as less risky, and therefore, often offer a slightly lower Annual Interest Rate (APR) compared to 15-year or 30-year terms.
Q: What is the total number of payments for this loan?A: A 10-year term always has 120 monthly payments ($10 \text{ years} \times 12 \text{ months}$).
Q: Do I need to pay Private Mortgage Insurance (PMI) on a 10-year mortgage?A: PMI rules are based on the equity in your home. The loan term itself does not affect the PMI requirement, but the faster repayment schedule may help you eliminate PMI sooner than a longer-term loan.