Mortgage Calculator
Calculate monthly mortgage payments with equal payment and equal principal methods. Compare total interest. Free online mortgage calculator.
Frequently Asked Questions
What is the difference between Equal Payment and Equal Principal?
Equal Payment (also called Equal Installment or Amortized Loan) keeps your monthly payment the same throughout the loan term โ you pay more interest early on and more principal later. Equal Principal keeps the principal portion fixed each month, so your total payment starts higher and decreases over time, resulting in less total interest paid.
Which payment method should I choose?
Equal Payment is easier on your budget in the early years since payments are fixed and lower. Equal Principal saves you money on total interest but requires higher payments initially. Choose Equal Principal if you can afford the higher early payments and want to minimize total interest.
How is the monthly payment calculated?
For Equal Payment, the formula is: M = P * [r(1+r)^n] / [(1+r)^n - 1], where M is the monthly payment, P is the principal, r is the monthly interest rate (annual rate / 12), and n is the total number of months. For Equal Principal, the monthly principal is P/n, and interest is calculated on the remaining balance each month.
Does this calculator include taxes and insurance?
No, this calculator only computes the principal and interest portion of your mortgage payment. Your actual monthly payment may be higher when property taxes, homeowner's insurance, PMI (Private Mortgage Insurance), and HOA fees are included.
Can I use this for any currency?
Yes, this calculator works with any currency. The $ sign is just a default display โ the calculation is based on the numbers you enter. Simply enter your loan amount in your local currency.
What is a good interest rate?
Interest rates vary by country, economic conditions, your credit score, and loan type. As of 2024, mortgage rates typically range from 3% to 8% depending on the region. Check with your local banks for current rates. This calculator lets you input any rate to see how it affects your payments.