Mortgage Calculator
Calculate your home loan EMI, interest, and repayment schedule
Property & Loan Details
How Mortgage Payments are Calculated?
A mortgage is a loan used to purchase real estate. Monthly payments consist of principal (the loan amount) and interest. The calculation uses the standard amortization formula to ensure fixed monthly payments throughout the loan term.
M = P × [r(1 + r)^n] / [(1 + r)^n - 1]
Where:
- M = Monthly payment
- P = Principal loan amount
- r = Monthly interest rate, calculated as (Annual rate / 12 / 100)
- n = Total number of payments, calculated as (Years × 12)
Example:
Let's say you buy a property worth ₹50,00,000 with a down payment of ₹10,00,000, leaving a loan of ₹40,00,000 at 8% annual interest for 20 years.
Given: P = ₹40,00,000, Annual rate = 8%, Years = 20
Step 1: Calculate monthly interest rate (r)
r = 8% / 12 / 100 = 0.00667
Step 2: Calculate number of payments (n)
n = 20 × 12 = 240 months
Step 3: Calculate Monthly Payment (M)
M = P × [r(1 + r)^n] / [(1 + r)^n - 1]
M = ₹40,00,000 × [0.00667 × (1.00667)^240] / [(1.00667)^240 - 1]
M = ₹40,00,000 × [0.00667 × 4.9268] / 3.9268
M = ₹40,00,000 × 0.00837
M ≈ ₹33,480
Step 4: Calculate Total Interest
Total Interest = (₹33,480 × 240) - ₹40,00,000
Total Interest = ₹80,35,200 - ₹40,00,000 = ₹40,35,200
Result: Your monthly mortgage payment will be ₹33,480, and you'll pay ₹40,35,200 in total interest over 20 years.
Key Components:
- Principal: The original loan amount borrowed
- Interest: Cost of borrowing money, calculated on remaining balance
- Down Payment: Initial payment reducing the loan amount
- Loan Term: Duration over which the loan is repaid (typically 15-30 years)
- Amortization: Gradual repayment of loan through regular payments
Types of Mortgages Supported
Fixed-Rate Mortgage
Interest rate remains constant throughout the loan term. Predictable payments ideal for long-term planning.
Adjustable-Rate Mortgage (ARM)
Interest rate can change periodically. Initial rates may be lower but payments can fluctuate.
Global Mortgages
Works for home loans in any country - US, UK, Canada, Australia, India, and worldwide.
Investment Properties
Calculate payments for rental properties and real estate investments.
Why Use Our Mortgage Calculator?
Accurate amortization calculations
Visual repayment schedule
Works for any currency worldwide
100% free, no registration
Mobile-friendly design
Compare different loan scenarios
Mortgage Calculator FAQs
❓What is a mortgage?
A mortgage is a loan secured by real estate property. The borrower makes regular payments (EMI) to repay the principal and interest over a set period, typically 15-30 years.
❓How does down payment affect my mortgage?
A larger down payment reduces your loan amount, resulting in lower monthly payments and less total interest paid over the life of the loan.
❓Can I use this for mortgages in any country?
Yes, our mortgage calculator works for home loans worldwide. Simply enter amounts in your local currency and the calculations remain accurate.
❓What's the difference between fixed and adjustable rate mortgages?
Fixed-rate mortgages have constant interest rates and payments throughout the term. Adjustable-rate mortgages (ARM) have rates that can change, potentially affecting your monthly payment.
❓Is this mortgage calculator free?
Yes, our mortgage calculator is completely free to use with no signup or registration required.