Mortgage Calculator

Find your monthly mortgage payment and total interest for any home loan amount, rate, and term.

Loan Details

₹5L₹5Cr
5%20%
1 yr30 yrs

Monthly EMI

₹43,391

Principal

₹50,00,000

Total Interest

₹54,13,879

Total Payment

₹1,04,13,879

Interest Ratio

52%

Payment Breakdown

PrincipalInterest

Mortgage Calculator Formula & How It Works

M = P × [r(1+r)ⁿ] / [(1+r)ⁿ − 1]
  • M = Monthly payment
  • P = Principal loan amount (home price minus down payment)
  • r = Monthly interest rate = Annual Rate ÷ 12 ÷ 100
  • n = Total payments = Loan term in years × 12

Each monthly payment covers interest on the remaining balance plus a portion of principal. Early payments are mostly interest; later payments repay more principal. This gradual shift is mortgage amortization and the formula ensures full repayment in exactly n payments.

Mortgage Calculator FAQs

How is a monthly mortgage payment calculated?

Use the formula M = P[r(1+r)ⁿ]/[(1+r)ⁿ−1]. For a $300,000 loan at 7% for 30 years: r = 0.005833, n = 360 → M ≈ $1,996/month.

How much house can I afford?

The 28/36 rule: housing costs should not exceed 28% of gross monthly income, and total debt payments should not exceed 36%. On a $6,000/month income that means a max housing cost of $1,680.

What is included in a mortgage payment?

The core formula covers principal and interest (P&I) only. Full monthly cost (PITI) adds property tax, homeowner's insurance, and PMI if your down payment is less than 20%.

How much interest do you pay over the life of a 30-year mortgage?

On a $300,000 loan at 7%, total interest over 30 years is approximately $419,000 — more than the original loan. A 15-year loan at the same rate costs about $186,000 in interest.

Does paying extra on a mortgage help?

Yes. Extra principal payments reduce the balance faster, cutting future interest. One extra payment per year on a 30-year mortgage typically shortens the term by 4–5 years.

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