Mortgage Calculator
The Mortgage Calculator shows your monthly payment, total interest, and total cost for a home loan. It is essential for planning one of the largest purchases most people ever make.
Mortgage Calculator
What the result means
Your monthly payment is calculated on the loan amount (home price minus down payment) using the standard EMI formula. The total interest shows how much extra you pay for borrowing, which can exceed the loan amount for long terms.
How to use this calculator
- 1Enter the home price in rupees.
- 2Enter your down payment amount.
- 3Enter the annual interest rate.
- 4Enter the loan term in years.
- 5Press Calculate to see your monthly payment, loan amount, total interest, and total cost.
The formula
The calculation uses a standard, verifiable formula. Here it is in its simplest form.
What each variable means
| Symbol | Name | Description |
|---|---|---|
| P | Loan amount | Home price minus your down payment. |
| r | Monthly rate | The annual interest rate divided by 12 and 100. |
| n | Months | The mortgage term in months. |
Step-by-step example
Example: ₹50,00,000 home with ₹10,00,000 down, 7.5% for 20 years
- 1Loan amount = 50,00,000 − 10,00,000 = ₹40,00,000
- 2Monthly rate = 7.5% ÷ 12 = 0.625% = 0.00625
- 3Months = 20 × 12 = 240
- 4EMI ≈ ₹32,227
- 5Total payment = 32,227 × 240 = ₹77,34,480
- 6Total interest = 77,34,480 − 40,00,000 = ₹37,34,480
Result
≈ ₹32,227/month, ₹37.3 lakh interest
What changes the result
- A larger down payment reduces the loan amount and total interest.
- Longer terms lower monthly payments but increase total interest.
- Home loan rates are often lower than other loans due to the collateral.
- Mortgage payments may include property tax and insurance in some countries.
Edge cases to be aware of
Unusual situations handled correctly
- If the down payment equals the home price, the loan amount is zero and no payment is due.
- Very long terms (30-40 years) can result in interest exceeding the principal.
- Floating-rate mortgages have payments that change with the benchmark rate.
Common mistakes
Avoid these errors
- Using the annual rate directly instead of dividing by 12.
- Forgetting that the loan amount is home price minus down payment.
- Underestimating the total interest over a long mortgage term.
Assumptions
- The interest rate is fixed for the loan term.
- Payments are made monthly.
- No prepayments or restructuring occur.
- Property tax and insurance are not included.
Limitations
- Does not include property tax, insurance, or maintenance costs.
- Floating-rate loans will have changing payments.
- This is an estimate, not a loan quote from a lender.
Frequently asked questions
How much down payment should I make on a home?+
What is a good mortgage term?+
Does the EMI formula include property tax?+
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