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Mortgage Calculator: Calculate Annual Rates & Monthly Payments

Are you planning to borrow a mortgage loan but unsure about monthly payments? Our mortgage calculator is here to help. With Lendstart's Mortgage Payment Calculator, you can easily calculate your estimated monthly mortgage payments. You can also understand the impact of different Mortgage Rates and make informed decisions about your home loan.

Mortgage Calculator

Home price


Down payment



Length of loan

Interest rate


Homeowner's insurance


Property tax


HOA fees



Monthly Payment

How to Use Our Home Loan Calculator

Using our Home Loan Calculator is simple and straightforward. All you need to do is enter the loan amount, loan term, and interest rate. The calculator will instantly estimate your monthly mortgage payments.

Understanding how these variables affect your mortgage is crucial. Here's how these variables break down:

  • Loan Amount: This is the total amount you plan to borrow from the lender.
  • Loan Term: This is the duration of the loan repayment.
  • Interest Rate: This is the annual interest rate on the loan.

Understanding Mortgage Rates

Mortgage Rates play a significant role in determining your monthly mortgage payments. A lower interest rate means lower monthly payments and less money paid over the life of the loan. Our Mortgage Calculator lets you see how different Annual Mortgage Rates affect your monthly payments, helping you choose the best rate for your situation.

Mortgage Monthly Payment Formula

The basic formula used in calculating an equated monthly installment (EMI) or mortgage payment is as follows:

  • P = Home Price - Down payment
  • Fixed Monthly Payment = P x [R x (1+R)^N]/[(1+R^N)-1]

Here’s how these variables break down:

  • P = Principal amount. This is the original amount you borrow from a lender before interest.
  • R = Yearly interest rate. This is how much you’ll need to pay in interest each year. If the interest rate is 4.00%, divide it by 12 months to determine the monthly rate. In this case, it would be 0.04/12 or 0.003333.
  • N = Number of payments you’ll make over the life of the mortgage loan. Most lenders offer either 15-year fixed rate or 30-year fixed-rate loans. To calculate the total number of payments, multiply the number of years by the number of months in a year. For example, a 15-year fixed-rate loan has 180 total payments (15 years x 12 months). A 30-year fixed-rate loan has 360 payments (30 years x 12 months).

Why Use a Mortgage Payment Calculator?

A Mortgage Payment Calculator is an essential tool for anyone considering a mortgage loan. It provides a clear picture of what you can expect to pay each month and helps you budget accordingly. Moreover, it allows you to compare different loan options and choose the one that best fits your financial situation.

Mortgage Loan Examples

To better understand how our loan calculator works, let's look at a few examples:

Example 1: If you take out a $300,000 loan with a 30-year term and a 3.5% interest rate, your monthly payment would be $1,347.13.

Example 2: If you take out a $200,000 loan with a 15-year term and a 2.5% interest rate, your monthly payment would be $1,333.58.

More Examples:

  Example A Example B Example C
Principal Amount $200,000 $300,000 $400,000
Yearly Interest 4.00% 4.00% 4.00%
Number of Payments (30-year loan) 360 360 360
Estimated Monthly Payment $954 $1,432 $1,909
Total Payment + Interest $344,016.44 $515,690.55 $687,698.97

*Remember, these are just estimates. Your actual monthly payments may vary based on additional factors like property taxes, homeowners insurance, and private mortgage insurance (PMI).

Why Use a Mortgage Loan Calculator

Using a mortgage loan calculator can help you determine the following:

  • The best loan length for you: A 30-year fixed-rate mortgage has a much longer term than a 15-year loan. This means you’ll pay more in total interest, but your monthly payments will be lower. If you want to decrease how much you spend in interest, increase your monthly payment.
  • Estimated monthly payment: With a mortgage loan calculator, you can budget how much you’ll spend each month. This, in turn, can help ensure you don’t end up strapped for cash when other bills come up.
  • Where your money’s going: A calculator will give you a good idea of how much money you could be spending on the principal amount, interest, property taxes, HOA fees, and more.
  • The recommended down payment: While a 20% down payment is standard, it’s not right for everyone. That said, a higher down payment usually means saving more money in interest payments. Make sure it fits into your budget and long-term plans, though.

At Lendstart, we're committed to helping you easily navigate the home loan process. Our mortgage calculator is just one of the many tools we offer to help you make informed decisions about your mortgage loan. Start calculating your Monthly Mortgage Payments today!