Mortgage Calculator for Your Site
Feel free to use our Mortgage Calculator on your website. The example implementation is shown below. It is possible to alter the color, font, and certain parts of the code to best fit your website.
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* Actual results may change with different plans and parameters. Mortgage calculator is for educational purposes only.
Get answers to these questions:
- I know the loan amount and monthly payment. What will be the loan term?
- I know the monthly payment and loan term. What will be the loan amount?
- I know the loan amount and loan term. What will be the monthly payment?
What is an interest rate?
The interest rate is a percentage by which the loan amount increases during each compounding period. It is usually presented in loan offers as a nominal annual rate called "APR". For most loans one repays a part of the principal on top of whatever interest is owed. The lower the interest rate the better it is for the borrower, all other things being equal.
What is a loan term?
A loan's term is the time duration during which it should be fully repaid with interest, if repayments commence on schedule. Generally loans for larger amounts of money come with longer terms, e.g. a personal loan for $5,000 may have a one year term whereas a mortgage would typically have a term between five years and thirty years. A longer term loan typically results in a greater amount of interest to be paid in total, but the pay backs come in smaller installments. Whether a longer term loan is preferable to a shorter term one is a personal calculation as it depends on the personal financial situation and preferences of the borrower.
Mortgage calculation
Mortgage loan monthly payment calculation:
A is the monthly payment amount.
P is the loan amount or principal amount.
r is the (annual interest rate)/12.
n is the number of monthly payments to return the loan.
Example
Calculate the monthly payment of $500,000 loan, interest rate of 5% and loan term of 20 years:
Solution:
r = 5% / 12 = 0.4166667% = 0.004166667
n = 20(years) × 12(months/year) = 240(months)
A = $500000 × (0.004166667×(1+0.004166667)240) / ((1+0.004166667)240-1) = $3300
