Calculate your monthly principal and interest payments.
A mortgage is likely the biggest debt you will ever take on. Understanding how interest rates and loan terms affect your monthly payment is critical for financial planning.
This calculator uses the standard amortization formula used by U.S. banks:
M = P [ i(1 + i)^n ] / [ (1 + i)^n – 1 ]
Even a 1% difference in interest rates can save (or cost) you tens of thousands of dollars. On a $300,000 loan, the difference between 6% and 7% interest is approximately $195 per month, or over $70,000 over the life of a 30-year loan.