🏡 Mortgage Calculator

🏡 Smart Mortgage Calculator

A Mortgage Calculator is a tool used to estimate your monthly loan payments based on key variables like: Home price Down payment Loan term Interest rate Currency Loan amount

What is a Mortgage Calculator?

A Mortgage Calculator is a tool used to estimate your monthly loan payments based on key variables like:
Home price
Down payment
Loan term
Interest rate
Currency
Loan amount
It also calculates total interest, total payment, and shows a payment schedule (amortization table).

What is Formula for Monthly Mortgage Payment and terms used in Mortgage Calculator?

The standard formula used is derived from the amortization formula:
M = P [ i(1 + i)^n ] / [ (1 + i)^n –1
​ Where:
M: Monthly mortgage payment
P: Loan principal (Home Price – Down Payment)
r: Monthly interest rate (Annual Interest Rate / 12 / 100)
n: Total number of monthly payments (Loan Term × 12)

📋 Terms Used in the Mortgage Calculator

1. Home Price

  • The total cost of the property you want to purchase.
  • Example: ₹50,00,000 (INR)

2. Down Payment

  • The amount you pay upfront.
  • It reduces the amount you borrow.
  • Example: ₹5,00,000
  • Loan Amount = Home Price − Down Payment = ₹45,00,000

3. Loan Amount

  • The actual amount borrowed from the bank or lender.
  • It’s what you repay over time with interest.

4. Interest Rate

  • The annual percentage charged by the lender.
  • Usually stated as APR (Annual Percentage Rate).
  • Example: 7.5% per annum

5. Loan Term

  • The time over which you will repay the loan.
  • Usually in years (like 15, 20, or 30 years).
  • Converted to months for calculation (Loan Term × 12).

6. Monthly Payment

  • The amount you must pay every month.
  • It includes both interest and principal repayment.

7. Total Payment

  • The total amount you will repay over the loan’s lifetime.
  • Formula: Monthly Payment × Total Months

8. Total Interest

  • The total cost of borrowing the money.
  • Formula: Total Payment − Loan Amount

9. Amortization Schedule

  • A month-by-month breakdown of each payment:
    • How much goes to interest
    • How much goes to principal
    • What is the remaining balance

Example Calculation

Input:

  • Home Price = ₹50,00,000
  • Down Payment = ₹5,00,000
  • Interest Rate = 7.5%
  • Loan Term = 20 years

Step 1: Calculate Loan Amount P=₹50,00,000−₹5,00,000=₹45,00,000P = ₹50,00,000 − ₹5,00,000 = ₹45,00,000P=₹50,00,000−₹5,00,000=₹45,00,000

Step 2: Convert Annual Interest Rate to Monthly r=7.5100÷12=0.00625r = \frac{7.5}{100} \div 12 = 0.00625r=1007.5​÷12=0.00625

Step 3: Calculate Total Number of Payments n=20×12=240n = 20 × 12 = 240n=20×12=240

Step 4: Plug into the Formula M=45,00,000×0.00625×(1+0.00625)240(1+0.00625)240−1M = 45,00,000 × \frac{0.00625 × (1 + 0.00625)^{240}}{(1 + 0.00625)^{240} – 1}M=45,00,000×(1+0.00625)240−10.00625×(1+0.00625)240​

Using a calculator, M≈₹36,276.58M ≈ ₹36,276.58M≈₹36,276.58

📊 Graphical Breakdown

If total interest turns out to be ₹41,06,379, then:

  • Principal: ₹45,00,000
  • Interest: ₹41,06,379
  • Total Payment = ₹86,06,379 over 20 years

This is visualized in:

  • Pie Chart: % of principal vs interest
  • Line Chart: Change in monthly interest/principal
  • Bar Chart: Total loan components
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