The **online mortgage payment calculator** estimates your potential monthly mortgage payment, helping you budget for a new home or refinance. Simply enter the loan principal, interest rate, and term to see your expected payments.
Online Mortgage Payment Calculator
Calculated Monthly Payment:
$0.00Online Mortgage Payment Calculator Formula
The standard formula for calculating a fixed-rate mortgage payment is:
$$M = P \frac{i(1 + i)^n}{(1 + i)^n – 1}$$
Where:
- M = Monthly payment
- P = Principal loan amount
- i = Monthly interest rate (Annual Rate / 1200)
- n = Total number of payments (Loan Term in Years * 12)
Variables Explained
Here is a breakdown of the inputs used in the calculator:
- Loan Amount (Principal): The total amount of money you are borrowing for the mortgage.
- Annual Interest Rate (%): The yearly rate of interest charged on the loan. This is divided by 12 to get the monthly rate.
- Loan Term (Years): The duration over which the loan is scheduled to be repaid (e.g., 15 years, 30 years).
- Monthly Payment (Optional): The fixed amount paid every month to the lender. If you enter this, the calculator can solve for the Loan Amount or Term.
Related Calculators
Explore these other useful financial tools:
- Refinance Savings Calculator
- Amortization Schedule Builder
- Rent vs. Buy Analysis Tool
- Mortgage Affordability Estimator
What is an Online Mortgage Payment Calculator?
An online mortgage payment calculator is a digital tool that provides a quick, accurate estimate of the monthly expense required to pay off a mortgage. It uses the four key variables of a loan—Principal, Annual Interest Rate, and Term—to solve for the fixed Monthly Payment, assuming a standard, fully amortizing, fixed-rate loan structure.
This tool is crucial for prospective homeowners and those considering refinancing. By providing an immediate estimation, it helps users determine their affordability range, structure a budget, and compare different loan offers (e.g., comparing a 15-year vs. a 30-year term). It typically does **not** include escrow costs like property taxes or insurance, so the calculated value represents the principal and interest (P&I) portion only.
How to Calculate a Mortgage Payment (Example)
Let’s use an example to illustrate the calculation steps for a $200,000 loan at 5% for 30 years.
- Step 1: Determine Variables.
- $P$ (Principal) = $200,000
- Annual Rate = 5%
- Term in Years = 30
- Step 2: Convert to Monthly Figures.
- Monthly Rate $i$: $5\% / 1200 = 0.004167$
- Total Payments $n$: $30 \text{ years} \times 12 \text{ months/year} = 360$
- Step 3: Calculate the Exponent Term.
- $(1+i)^n$: $(1 + 0.004167)^{360} \approx 4.4677$
- Step 4: Plug values into the formula.
- $M = \$200,000 \times \frac{0.004167 \times 4.4677}{4.4677 – 1}$
- Step 5: Solve for M. The resulting monthly payment, M, is approximately $1,073.64.
Frequently Asked Questions (FAQ)
What is P&I vs. PITI?
P&I stands for Principal and Interest, which is what this calculator determines. PITI stands for Principal, Interest, Taxes, and Insurance. PITI is your full monthly housing cost, while P&I is the cost of servicing the loan itself.
Does a longer term (e.g., 30 years) mean I pay less total interest?
No. A longer term means a lower monthly payment, but because the loan is outstanding for a longer period, you will pay significantly more in total interest over the life of the loan compared to a 15-year mortgage.
Can I use this calculator for adjustable-rate mortgages (ARMs)?
This calculator is designed for fixed-rate mortgages. While you can input a rate to calculate the initial payment period for an ARM, the payment will change once the interest rate adjusts, and this tool cannot predict future adjusted payments.
What is the minimum down payment required for a mortgage?
Minimum down payments vary by loan type. Conventional loans can require as little as 3% down, FHA loans typically require 3.5%, and VA loans (for veterans) often require 0% down. The down payment is subtracted from the home price to determine the Loan Amount (Principal).