Mortgage Calculator

Loan Calculator

Mortgage Rates  |  Mortgage Widgets

Show advanced options
Make your website sticky & keep customers on your site by installing a free calculator today.
$1,267 $456,017 Nov, 2053
Monthly payment Total of 360 payments Loan payoff date


Use our mortgage loan calculator to determine your monthly payment for a home. You can play with the different parameters to determine which loan is right for you.

Using a loan calculator before you look at homes helps you understand what you can afford. You'll see how different interest rates affect your loan and even how different down payments can change your loan payment.

When you shop for a loan, look at all your loan options including FHA, conventional, and jumbo loans. Knowing how each loan affects not only your monthly payment, but the overall cost of the loan is important.

Your home is one of the largest investments of your lifetime. Using a loan calculator ensures you enter the purchase with full knowledge of the loan.


What is an FHA loan?

FHA loans are government-backed loans. The FHA doesn't fund or underwrite the loans, but they set the guidelines and provide lenders with a guarantee. If a borrower defaults on the loan, the FHA pays the lender back a portion of the loss.

Because of the guarantee, FHA lenders can offer more flexible guidelines which includes low down payment requirements, low credit score requirements, had they even allow high debt-to-income ratios. It's a perfect first-time homebuyer loan, but it's also great for subsequent homebuyers with less than perfect credit.

What is a home equity loan?

A home equity loan is a second loan on your home. It can be a line of credit (HELOC) or a fixed-rate second mortgage. Either way, it's a second lien on your property. You pay the mortgage payment just like your first, but if you have a HELOC, you only pay interest on the amount you withdrawal (the rest remains in an account for you to use).

A home equity loan is great to pay for home improvements, pay for college, or even have on hand as an emergency fund. The interest rates on home equity loans are usually low, and the requirements to qualify are simple.

What is a jumbo loan?

A jumbo loan is any loan that exceeds the standard conforming loan limit. For 2021, that means exceeding $548,250. If you need to borrow more than this amount and will borrow it all in one loan, you'll need a jumbo loan.

Jumbo loans have tougher qualifying requirements because they are riskier. Lenders take a higher risk of default lending you more than the conforming loan limit. They usually require at least a 20% down payment, great credit, and low debt ratios to borrow the larger loan amount.

What is a conventional loan?

Conventional loans are backed by Fannie Mae and Freddie Mac. They don't have the same government guarantee as FHA or VA loans, so lenders take a higher risk with them. Conventional loans are for borrowers with great credit and low debt ratios. If you put less than 20% down on a conventional loan, you'll pay Private Mortgage Insurance, but only until you owe less than 80% of the home's value.

Conventional loans offer some of the lowest interest rates, so it's worth it to improve your credit and save money for a large down payment to take advantage of the savings conventional loans offer.

How to get a loan with bad credit?

Bad credit borrowers can get a mortgage too. Lenders have various loan programs that cater to borrowers with low credit scores. FHA loans are a good example, but there are other subprime options too.

To get the lowest APR on a bad credit loan, it helps to maximize other factors. For example, if you can make a larger down payment or you have fewer debts, lenders can give you a lower APR because your risk of default is lower.

If you have bad credit, shop around with different lenders and use our loan calculator to see which loan is the best for your financial situation.

How to calculate interest on a loan?

To calculate the interest on your loan, you'll need your interest rate and principal balance. Take the interest rate and divide it by 12. Next, multiply that number by the principal balance. This is your interest payment for the first month. The remainder of the payment is principal.

Deduct the principal payment from your loan amount and do the same thing for the following month. Each month your interest charges will drop slightly as you decrease your principal balance.



A loan or mortgage is what you get from the bank to buy the home. You use the money from the loan plus your down payment to pay the seller for the home. You'll also pay closing costs on top of your down payment to get the loan.

Loan Calculator

Use a loan calculator to estimate your loan payments, see how much you'll pay in interest, or how much loan you can afford. A loan calculator is a great way to see what you can afford before you look at homes.

Loan Amount

The loan amount is the money you borrow to buy the home. For example, if a home sells for $200,000 and you put $20,000 down on the home. Your loan amount is the difference, or $180,000. This is the amount you pay interest on.

Interest Rate

The interest rate is the fee the bank charges to loan you the money. You pay interest monthly based on how much money is outstanding. The interest rate can be fixed (never changes) or adjustable, and change annually.

Loan Term

The loan term is the time you borrow the loan. Mortgage loans usually have a term of 10 – 30 years or 120 – 360 months. You can pay most loans off early, but the term is how the lender amortizes your payments.

Start Date

The start date is the first date you'll owe a payment. For most loans, your first payment is on the first day of the second month after you close. For example, if you close on May 10th, your first payment will be due July 1st.

Copyright © 2023 MORTGAGE CALCULATOR LLC. All rights reserved. Terms of Use  |  Privacy  |  Contact Us