FAQ: How to Use the Mortgage Calculator?
1. What is a mortgage?
A mortgage is a long-term loan used to buy a home, with the property itself as collateral.
2. What is a mortgage payment?
Your monthly mortgage payment (sometimes called P&I) covers both loan interest and principal repayment.
3. How to use this calculator?
- Enter your total loan amount in dollars.
- Enter annual interest rate (in percent).
- Choose your loan's term (years or months).
- Click Calculate to see your monthly payment and total interest.
4. Formula used:
Monthly Payment = [P × r × (1+r)^n] / [(1+r)^n - 1]
P = principal, r = monthly interest rate (annual rate / 12 / 100), n = total months.
5. Does it include taxes and insurance?
No; this calculator shows principal + interest only ("P&I"), not property taxes or homeowners' insurance. (Add those extra expenses yourself.)
6. Is my data stored?
No, all calculations happen on your browser, keeping your information private.