Mortgage Calculator Full Cost

Introduction: Buying a home is an important financial decision, and understanding the full cost of a mortgage is crucial. Our Mortgage Calculator helps you estimate your monthly payments and the total cost of your mortgage. In this article, we’ll explain the formula behind it, how to use the calculator, provide an example, and answer some frequently asked questions.

Formula: To calculate the monthly mortgage payment, we use the following formula: M = P[r(1 + r)^n] / [(1 + r)^n – 1]


  • M = Monthly Payment
  • P = Loan Amount
  • r = Monthly Interest Rate
  • n = Number of Payments (loan term in months)

How to Use:

  1. Enter the loan amount in dollars.
  2. Enter the annual interest rate in percentage.
  3. Input the loan term in years.
  4. Click the “Calculate” button.
  5. The calculator will display your estimated monthly mortgage payment.

Example: Let’s say you want to take out a $200,000 mortgage with a 4% annual interest rate for 30 years. After using our Mortgage Calculator, you will find that your estimated monthly payment is approximately $954.83.


  1. What is a Mortgage Calculator? A Mortgage Calculator is a tool that helps you estimate your monthly mortgage payments.
  2. How do I use the Mortgage Calculator? Simply enter your loan amount, interest rate, and loan term, then click “Calculate.”
  3. What is the formula used by the calculator? The formula used is M = P[r(1 + r)^n] / [(1 + r)^n – 1], where M is the monthly payment, P is the loan amount, r is the monthly interest rate, and n is the number of payments.
  4. Is the calculated monthly payment accurate? It provides a close estimate, but actual payments may vary based on additional factors.
  5. Can I use the calculator for different loan types? Yes, you can use it for various loans, including home mortgages and personal loans.
  6. What happens if I make extra payments on my mortgage? Making extra payments can reduce the total cost and shorten the loan term.
  7. What is amortization? Amortization is the process of gradually paying off a loan, with a portion of each payment going toward both principal and interest.
  8. Can I change the payment frequency to bi-weekly or quarterly? The calculator is designed for monthly payments, but you can adjust the results accordingly.
  9. Are property taxes and insurance included in the calculation? The calculator typically doesn’t include taxes and insurance, so it provides a basic estimate.
  10. Can I save the calculation for reference? You can manually record the results for future reference.

Conclusion: Our Mortgage Calculator is a valuable tool for anyone considering a home purchase or mortgage refinancing. By understanding the full cost of your mortgage, you can make informed financial decisions and plan your budget effectively. Feel free to use this tool to explore different scenarios and gain insights into your mortgage payments.

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