Bankrate Loan Calculator Mortgage Calculator Singapore

Mortgage Payment Formula:

\[ PMT = P \times \frac{r \times (1 + r)^n}{(1 + r)^n - 1} \]

Monthly Payment (PMT):

Total Payment:

Total Interest:

Unit Converter ▲

Unit Converter ▼

From:	To:

1. What is the Mortgage Payment Formula?

The mortgage payment formula calculates the fixed monthly payment required to fully amortize a loan over its term. This Bankrate-style calculation is widely used in financial planning and mortgage applications.

2. How Does the Calculator Work?

The calculator uses the standard mortgage payment formula:

\[ PMT = P \times \frac{r \times (1 + r)^n}{(1 + r)^n - 1} \]

Where:

\( P \) — Principal loan amount (USD)
\( r \) — Monthly interest rate (annual rate ÷ 12)
\( n \) — Number of monthly payments (years × 12)
\( PMT \) — Fixed monthly payment amount (USD)

Explanation: The formula accounts for both principal repayment and interest charges, with the payment amount remaining constant throughout the loan term.

3. Importance of Mortgage Calculation

Details: Accurate mortgage calculations help borrowers understand their financial commitments, compare loan options, and plan their budgets effectively.

4. Using the Calculator

Tips: Enter the loan amount in USD, annual interest rate as a percentage (e.g., 3.5 for 3.5%), and loan term in years. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: Does this include property taxes and insurance?
A: No, this calculates only the principal and interest portion. Your actual payment may include additional amounts for taxes and insurance.

Q2: How does Singapore's mortgage market differ?
A: While the calculation is universal, Singapore's mortgages often use SIBOR/SOR rates or fixed-rate packages with different terms.

Q3: What's the difference between reducing balance and flat rate?
A: This calculator uses reducing balance method (common worldwide). Flat rate loans (less common) calculate interest on the original principal throughout.

Q4: How does loan tenure affect payments?
A: Longer terms reduce monthly payments but increase total interest paid. Shorter terms have higher payments but lower total cost.

Q5: Are there prepayment penalties in Singapore?
A: Some Singapore loans have lock-in periods with penalties for early repayment. Check your loan agreement for specific terms.