A Mortgage Calculator is a helpful tool that allows you to estimate your monthly loan payments when buying or selling a property.
It helps you understand how much you need to pay each month based on the loan amount, interest rate, and repayment period.
How Does a Mortgage Calculator Work?
- Loan Amount : Total borrowed money from the bank or lender.
- Interest Rate : Percentage charged by the lender on the loan.
- Loan Term (Years) : Repayment period (10, 15, 20, or 30 years).
Once you enter these values, the calculator provides your monthly installment (EMI – Equated Monthly Installment).
Formula Used in a Mortgage Calculator
The formula for EMI calculation:
EMI = P × r × (1 + r)^n / ((1 + r)^n - 1)
- P : Loan amount (Principal)
- r : Monthly interest rate (Annual rate ÷ 12 ÷ 100)
- n : Total number of months (Loan term × 12)
How to Use the Mortgage Calculator?
- Enter the loan amount.
- Input the interest rate.
- Select the loan term.
- Click Calculate to see your monthly installment.
Why Use a Mortgage Calculator?
- Easy Planning : Helps estimate monthly payments.
- Saves Time : Quick calculations without manual effort.
- Compare Loans : Check different loan options and interest rates.
- Budgeting Help : Plan finances before taking a loan.
Conclusion
A mortgage calculator is a powerful tool that helps homebuyers and investors estimate their loan payments.
By entering the loan amount, interest rate, and loan term, you get an instant estimate of your monthly payments.
Use Raabty’s Mortgage Calculator to make informed financial decisions with accuracy and ease!
