Mortgage Loan Calculator

Estimate home mortgage monthly payments and total interest.

Overview

Estimates monthly home mortgage payments, principal amortisation, and total lifetime interest costs for property purchases.

Formula & Calculation Method

M = P × [r(1+r)^n] / [(1+r)^n - 1]

P = Loan balance, r = Monthly interest rate, n = Total number of monthly mortgage payments.

Worked Example: ₹40 Lakh Mortgage at 8.75% for 20 Years

Inputs: Mortgage Amount = ₹40,00,000 | Interest Rate = 8.75% | Term = 20 Years (240 Months)

  • Monthly interest rate r = 8.75 / 12 / 100 = 0.0072916
  • Amortisation factor = (1.0072916)^240 = 5.7088
  • Monthly Mortgage Payment M = ₹35,348 per month

Summary: Principal = ₹40,00,000 | Monthly Payment = ₹35,348 | Total Interest = ₹44,83,520 | Total Cost = ₹84,83,520

Common Use Cases

  • Mortgage Comparison: Evaluate bank quotes across variable loan tenures to balance payment size and interest cost.
  • Down Payment Impact: See how increasing your down payment by ₹5 Lakhs lowers your monthly commitment.
  • Amortization Analysis: Track when your payments start contributing more to principal reduction than interest charges.

Frequently Asked Questions

What is an amortization schedule?

A chronological table showing how each monthly mortgage payment is split between principal reduction and interest fees.

Can I shorten my mortgage term without refinancing?

Yes, making extra principal payments directly reduces outstanding debt and cuts remaining tenure.

What is Loan-to-Value (LTV)?

The ratio of the loan amount to the appraised property value; lower LTV (e.g. 70-80%) secures lower interest rates.

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