Mortgage Calculator
Calculate your monthly mortgage payment and view a complete amortization schedule for any home loan.
How to Use the Mortgage Calculator
Enter your home loan amount, annual interest rate, and loan term in years. Optionally add your down payment to calculate on the net loan amount. Click Calculate to see your exact monthly EMI, total interest paid, and year-by-year amortization table.
Mortgage Payment Formula
The standard formula for monthly mortgage payment is: M = P × [r(1+r)^n] / [(1+r)^n – 1], where P is principal, r is the monthly interest rate (annual rate ÷ 12), and n is the total number of months.
Understanding Amortization
In the early years of a mortgage, most of your payment goes toward interest. Over time, as the principal reduces, more of each payment goes toward the principal. This is called negative amortization front-loading. The amortization table above shows exactly how much goes where, year by year.
Tips to Reduce Your Mortgage
- Make a larger down payment to reduce principal
- Opt for a shorter loan term to save on total interest
- Make one extra payment per year to shorten your term
- Refinance when rates drop significantly
Frequently Asked Questions
How is mortgage payment calculated?
Monthly payment = P × [r(1+r)^n] / [(1+r)^n – 1], where P = loan amount, r = monthly rate, n = total months.
What is amortization?
Amortization is paying off a loan with regular payments. Early payments are mostly interest; later ones are mostly principal.
Does this include taxes and insurance?
No. This shows principal & interest only. Property taxes and insurance (escrow) are additional.
What is a good mortgage rate?
In India, home loan rates range 8–10% p.a. In the US, currently 6–8%. Always compare multiple lenders.