Mortgage Calculator

CALCULATE

Mortgage calculator to find monthly payment, total payment and total interest along with payment schedule to analyze the best mortgage provider in the real estate market.
It is necessary to follow the next steps:

Enter the property value, interest rate, loan terms and down payment (this field is optional). These values must be positive real numbers while the loan terms must be positive integer;
Press the "CALCULATE" button to make the computation;
Mortgage calculator will give the mortgage value, monthly payment, total repayment and total interest cost.

Input: Four positive real numbers. Value which represents the loan terms must be positive integer;
Output: Four positive real numbers.

Mortgage Formula:

The mortgage is defined by the formula: $$M=P\frac{r(1+r)^n}{(1+r)^n-1}$$ where $M$ is the monthly payment, $P$ is the principal amount borrowed, $r$ is the monthly interest rate, $n$ is the number of months that we will repay the loan.

What is Mortgage?

A mortgage loan or a mortgage is an agreement by which a financial institution or bank gives money in exchange for taking the title of debtors property. The bank holds the agreement until the debt is fully repaid. In other words, a mortgage is a kind of a personal loan that the bank gives. If the debtor is unable to pay monthly installments, the financial institution or bank takes ownership of the investment.
This mortgage calculator can determine which loan mortgage provider provides the best value to save money by comparing different interest rates, mortgage principal amounts, monthly or periodic loan repayments and amortization schedule.

How to Calculate Mortgage?

The mortgage is defined by the formula: $$M=P\frac{r(1+r)^n}{(1+r)^n-1}$$ where $M$ is the monthly payment, $P$ is the principal, $r$ is the monthly interest rate, $n$ is the number of months that we will repay the loan. To calculate monthly interest rate we will divide the annual interest rate by $12$.
For example, for property value of $\$100,000$ and down payment of $\$25,000$, interest rate of $4.2\%$ (this divided by $12$ equals $r=0.0035$) and loan terms of $6$ years ($n=6\times 12=72$ months), we get

$$M=75,000\frac{0.0035(1+0.0035)^{72}}{(1+0.0035)^{72}-1}=\$1180.24$$

So, the monthly payment is $\$1180.24$. The total sum of all payments, total repayments, is $$\$1180.24\times 72=\$84977.3$$ Here we give some mortgage examples over $30,$ $20,$ $15$ and $10$ years.

Monthly repayment comparison for $\$50,000$ mortgage over $30,$ $20,$ $15$ and $10$ years.

Interest Rate	30 years	20 years	15 years	10 years
3.25 %	$ 218	$ 284	$ 351	$ 489
3.50 %	$ 225	$ 290	$ 357	$ 494
3.75 %	$ 232	$ 296	$ 364	$ 500
4.00 %	$ 239	$ 303	$ 370	$ 506
4.25 %	$ 246	$ 310	$ 376	$ 512
4.50 %	$ 253	$ 316	$ 383	$ 518
4.75 %	$ 261	$ 323	$ 389	$ 524
5.00 %	$ 268	$ 330	$ 395	$ 530

Monthly repayment comparison for $75, 000 mortgage over 30, 20, 15 and 10 years.

Interest Rate	30 years	20 years	15 years	10 years
3.25 %	$ 326	$ 425	$ 527	$ 733
3.50 %	$ 337	$ 435	$ 536	$ 742
3.75 %	$ 347	$ 445	$ 545	$ 750
4.00 %	$ 358	$ 454	$ 555	$ 759
4.25 %	$ 369	$ 464	$ 564	$ 768
4.50 %	$ 380	$ 474	$ 574	$ 777
4.75 %	$ 391	$ 485	$ 583	$ 786
5.00 %	$ 403	$ 495	$ 593	$ 795

Monthly repayment comparison for $80, 000 mortgage over 30, 20, 15 and 10 years.

Interest Rate	30 years	20 years	15 years	10 years
3.25 %	$ 348	$ 454	$ 562	$ 782
3.50 %	$ 359	$ 464	$ 572	$ 791
3.75 %	$ 370	$ 474	$ 582	$ 800
4.00 %	$ 382	$ 485	$ 592	$ 810
4.25 %	$ 394	$ 495	$ 602	$ 820
4.50 %	$ 405	$ 506	$ 612	$ 829
4.75 %	$ 417	$ 517	$ 622	$ 839
5.00 %	$ 423	$ 528	$ 633	$ 849

Monthly repayment comparison for $90, 000 mortgage over 30, 20, 15 and 10 years.

Interest Rate	30 years	20 years	15 years	10 years
3.25 %	$ 392	$ 510	$ 632	$ 879
3.50 %	$ 404	$ 522	$ 643	$ 890
3.75 %	$ 417	$ 534	$ 655	$ 901
4.00 %	$ 430	$ 545	$ 666	$ 911
4.25 %	$ 443	$ 557	$ 677	$ 922
4.50 %	$ 456	$ 569	$ 688	$ 933
4.75 %	$ 469	$ 582	$ 700	$ 944
5.00 %	$ 483	$ 594	$ 712	$ 955

Monthly repayment comparison for $100, 000 mortgage over 30, 20, 15 and 10 years.

Interest Rate	30 years	20 years	15 years	10 years
3.25 %	$ 435	$ 567	$ 703	$ 977
3.50 %	$ 449	$ 580	$ 715	$ 989
3.75 %	$ 463	$ 593	$ 727	$ 1001
4.00 %	$ 477	$ 606	$ 740	$ 1012
4.25 %	$ 492	$ 619	$ 752	$ 1024
4.50 %	$ 507	$ 633	$ 765	$ 1036
4.75 %	$ 522	$ 646	$ 778	$ 1048
5.00 %	$ 537	$ 660	$ 791	$ 1061

Monthly repayment comparison for $125, 000 mortgage over 30, 20, 15 and 10 years.

Interest Rate	30 years	20 years	15 years	10 years
3.25 %	$ 544	$ 703	$ 878	$ 1221
3.50 %	$ 561	$ 725	$ 894	$ 1236
3.75 %	$ 579	$ 741	$ 909	$ 1251
4.00 %	$ 597	$ 757	$ 925	$ 1266
4.25 %	$ 615	$ 774	$ 940	$ 1280
4.50 %	$ 633	$ 791	$ 956	$ 1295
4.75 %	$ 652	$ 808	$ 972	$ 1311
5.00 %	$ 671	$ 825	$ 988	$ 1326

For any other property value, interest rate, loan terms and down payment just supply four positive real numbers and click on the CALCULATE button.

Real World Problems Using Mortgage

Owning a home is a dream of every person. It is not possible for everyone to buy well-furnished house in cash so the mortgage loan a is a necessary service. The total time to repay a mortgage loan may exceed more than two or three decades. Using a $20$ or $30$-year mortgage, we could end up paying more in interest than we pay in principal. Understanding how the various types of interest rates work with this calculator can help us to find a better mortgage and save money.

Mortgage Practice Problem

Practice Problem 1:
The financial organization offers a $5$ years mortgage for $\$200,000$ at an interest rate of $10\%$. Find the monthly payments.

Practice Problem 2:
The financial organization offers a $15$ years mortgage for $\$150,000$ at an interest rate of $6.25\%$. Find the loan balance after $5$ years and $2$ months.

The mortgage calculator, example calculation, real world problems and practice problems would be very useful for grade school students (K-12 education) to understand the concept of financial analysis.