Mortgage Calculator Cnn Money

This mortgage calculator helps you estimate your monthly payments, total interest paid, and amortization schedule. Whether you're buying a home or refinancing, understanding your mortgage terms is crucial for financial planning.

How to Use This Mortgage Calculator

Using our mortgage calculator is simple:

Enter the loan amount you're applying for
Input your interest rate (fixed or variable)
Specify the loan term in years
Click "Calculate" to see your results

The calculator will show you:

Monthly payment amount
Total interest paid over the loan term
Total amount paid (principal + interest)
Amortization schedule breakdown

Note: This calculator provides estimates. Your actual mortgage terms may vary based on your lender's specific calculations and additional fees.

Mortgage Payment Formula

The monthly 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
i = Monthly interest rate (annual rate divided by 12)
n = Number of payments (loan term in years × 12)

This formula accounts for the fact that each payment includes both principal and interest, with the interest portion decreasing over time as the principal balance is paid down.

Worked Example

Let's calculate a mortgage for $200,000 at 4.5% interest over 30 years:

Convert annual rate to monthly: 4.5% ÷ 12 = 0.375% or 0.00375
Calculate number of payments: 30 × 12 = 360
Plug into formula:

M = $200,000 [ 0.00375(1 + 0.00375)³⁶⁰ ] / [ (1 + 0.00375)³⁶⁰ - 1 ]
Calculate the monthly payment: $1,073.64

Over 30 years, you would pay $386,510 in total, with $186,510 going toward interest.

Mortgage Payment Summary
Loan Amount	Interest Rate	Term	Monthly Payment	Total Interest
$200,000	4.5%	30 years	$1,073.64	$186,510

Frequently Asked Questions

How accurate is this mortgage calculator?

This calculator provides estimates based on standard mortgage formulas. Your actual mortgage terms may vary slightly due to lender-specific calculations and additional fees.

What's the difference between fixed and variable rates?

Fixed-rate mortgages have the same interest rate for the entire loan term, while variable-rate mortgages adjust with market rates. Fixed rates typically offer more stability, while variable rates may offer lower initial rates.

How much should I budget for mortgage payments?

A general rule is to keep your housing costs (mortgage + property taxes + insurance) at or below 28% of your gross monthly income. Total debt payments (including mortgage) should be no more than 36% of your income.