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VELNARO

Mortgage Calculator

Enter the loan amount, interest rate and term to see your monthly mortgage payment, the total interest you will pay and the total cost of the loan. Add optional extras such as property tax and insurance for a realistic monthly figure.

Monthly payment

$1,688.02

With tax & insurance

$1,688.02

Total interest

$256,405.37

Total repaid

$506,405.37

Number of payments

300

Balance after 5 years

$226,405.41

Balance after 10 years

$193,778.40

How this was worked out

  1. Step 1Monthly rate i = 6.5% ÷ 12 = 0.5417% = 0.005417
  2. Step 2Payments n = 25 × 12 = 300
  3. Step 3M = P × i ÷ (1 − (1 + i)^−n) = 250,000 × i ÷ (1 − (1 + i)^−300)
  4. Step 4M = $1,688.02

Assumes a fixed interest rate with monthly repayments and no fees. Your lender’s APR, arrangement fees and any variable-rate changes will alter the real figure.

Formula

M = P × i ÷ (1 − (1 + i)⁻ⁿ) where i = annual rate ÷ 12 and n = years × 12

How it works

  1. 1Each monthly payment covers that month’s interest first, and the rest reduces the balance you owe — this is called amortisation.
  2. 2Because the balance falls over time, the interest portion of each payment falls too, so more of your payment goes to capital as the loan progresses.
  3. 3Extending the term lowers your monthly payment but increases the total interest you pay.

Example

Input

$250,000 at 6.5% over 25 years

Result

≈ $1,689 per month; total interest ≈ $256,800

Frequently asked questions

The monthly payment is P × i ÷ (1 − (1 + i)⁻ⁿ), where P is the loan amount, i is the monthly interest rate and n is the total number of payments.

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