Money.cnn.com Calculator Real Estate Mortgage-Payment

This calculator helps you estimate your monthly mortgage payment based on the home price, down payment, loan term, and interest rate. It provides a clear breakdown of your payment components and shows how different scenarios affect your monthly cost.

How to Use This Calculator

To calculate your mortgage payment:

Enter the home price in the "Home Price" field.
Enter your down payment amount or percentage.
Select the loan term (typically 15, 20, or 30 years).
Enter the current interest rate.
Click "Calculate" to see your estimated monthly payment.

The calculator will display your total monthly payment, principal and interest breakdown, and an amortization schedule chart.

Formula Used

The mortgage payment is calculated using the standard mortgage formula:

M = P [ i(1 + i)ⁿ ] / [ (1 + i)ⁿ - 1 ]

Where:

M = Monthly payment
P = Principal loan amount (Home Price - Down Payment)
i = Monthly interest rate (Annual Rate / 12 / 100)
n = Number of payments (Loan Term in years × 12)

This formula accounts for the interest on the loan balance over the life of the loan.

Worked Example

Let's calculate a mortgage payment for a $300,000 home with a 20% down payment, 30-year term, and 6% interest rate.

Principal (P) = $300,000 - (20% × $300,000) = $240,000
Monthly interest rate (i) = 6% / 12 / 100 = 0.005
Number of payments (n) = 30 × 12 = 360
Using the formula: M = $240,000 [ 0.005(1.005)³⁶⁰ ] / [ (1.005)³⁶⁰ - 1 ] ≈ $1,432.25

So the monthly payment would be approximately $1,432.25.

Interpreting Results

The calculator provides several key pieces of information:

Monthly Payment: Your total monthly cost including principal and interest.
Principal & Interest Breakdown: Shows how much of each payment goes toward principal versus interest.
Amortization Schedule: A chart showing how your loan balance decreases over time.
Total Interest Paid: The total amount of interest you'll pay over the life of the loan.

Use this information to compare different loan scenarios and make informed decisions about your mortgage.

Frequently Asked Questions

What is included in the monthly mortgage payment?: The monthly payment includes principal (the portion of the loan being paid off) and interest (the cost of borrowing the money). It may also include property taxes, homeowners insurance, and mortgage insurance if applicable.
How does a higher down payment affect my mortgage payment?: A higher down payment reduces the principal amount you need to borrow, which typically results in a lower monthly payment. However, it also means you'll pay less toward the principal each month, potentially increasing the total interest paid over the life of the loan.
What happens if interest rates change after I get my mortgage?: If interest rates rise after you get your mortgage, you may be able to refinance to take advantage of lower rates. Some mortgages offer adjustable-rate options that change with market rates.
How long does it take to pay off a 30-year mortgage?: A standard 30-year mortgage has 360 monthly payments. The exact time depends on your payment amount and how much of each payment goes toward the principal.
What is the difference between fixed-rate and adjustable-rate mortgages?: Fixed-rate mortgages have the same interest rate for the life of the loan, while adjustable-rate mortgages (ARMs) have an initial fixed rate that changes periodically based on market rates. ARMs typically have lower initial rates but may increase over time.