1. What is a Mortgage Payment Calculator?

The mortgage payment calculator helps you estimate your monthly home loan payments and shows how each payment is split between principal and interest over the life of the loan.

2. How Does the Calculator Work?

The calculator uses the standard mortgage payment formula:

Where:

• \( PMT \) — Monthly payment
• \( P \) — Principal loan amount
• \( r \) — Monthly interest rate (annual rate ÷ 12)
• \( n \) — Total number of payments (loan term in years × 12)

3. Understanding Amortization

Details: Amortization is the process of paying off a loan over time through regular payments. Early payments consist mostly of interest, while later payments apply more toward the principal.

4. Using the Calculator

Tips: Enter the loan amount, annual interest rate (without % sign), and loan term in years. The calculator will show your estimated monthly payment and a detailed amortization schedule.

5. Frequently Asked Questions (FAQ)

Q1: What's included in a mortgage payment?
A: This calculator shows principal and interest only. Actual payments may include taxes, insurance, and PMI if applicable.

Q2: How does a larger down payment affect my loan?
A: A larger down payment reduces your principal amount, resulting in lower monthly payments and less total interest paid.

Q3: What's the difference between 15-year and 30-year mortgages?
A: A 15-year mortgage has higher monthly payments but much less total interest. A 30-year mortgage has lower payments but more total interest.

Q4: How does interest rate affect my payment?
A: Even small rate changes can significantly impact your monthly payment and total loan cost.

Q5: Can I see the full amortization schedule?
A: This calculator shows the first 12 months. For a full schedule, consider using a spreadsheet or more detailed mortgage calculator.