Simple Mortgage Calculator Without Taxes and Insurance

This simple mortgage calculator helps you estimate your monthly payments without including property taxes or homeowners insurance. It provides a clear breakdown of your principal and interest payments, helping you understand your mortgage costs before taxes and insurance.

How to Use This Calculator

Using this mortgage calculator is straightforward. Follow these steps to get your estimated monthly payment:

Enter the loan amount you're applying for in the "Loan Amount" field.
Input the annual interest rate in the "Annual Interest Rate" field.
Specify the loan term in years in the "Loan Term (Years)" field.
Click the "Calculate" button to see your estimated monthly payment.

The calculator will display your monthly payment, the total amount paid over the life of the loan, and the total interest paid. You can also view a breakdown of your payments over time with the included chart.

The Mortgage Formula

The calculation for your monthly mortgage payment is based on the standard amortization formula:

Mortgage Payment 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 / 12)
n = Number of payments (Loan Term in Years × 12)

This formula calculates the fixed monthly payment required to fully amortize a loan over the specified term. The calculator uses this formula to provide an accurate estimate of your monthly payment.

Worked Example

Let's walk through an example to see how the calculator works. Suppose you're taking out a $200,000 mortgage at a 4.5% annual interest rate for 30 years.

Enter $200,000 as the loan amount.
Enter 4.5 as the annual interest rate.
Enter 30 as the loan term in years.
Click "Calculate".

The calculator will show that your monthly payment would be approximately $1,073.64. Over the 30-year term, you would pay a total of $386,090, with $86,090 going toward interest.

Note

This example does not include property taxes or homeowners insurance. Actual payments may be higher depending on your location and the specific terms of your mortgage.

Frequently Asked Questions

What is a simple mortgage calculator?

A simple mortgage calculator is a tool that estimates your monthly mortgage payments based on the loan amount, interest rate, and loan term. It helps you understand your potential payments before taxes and insurance.

How accurate is this calculator?

This calculator provides an estimate of your monthly payments. For precise figures, consult with a mortgage lender who can factor in additional costs like property taxes and insurance.

Can I use this calculator for different loan terms?

Yes, you can adjust the loan term to see how different terms affect your monthly payments. This helps you compare the cost of shorter versus longer loan terms.