Mortgage Interest Calculator Spreadsheet
Mortgage interest calculators are essential tools for homebuyers and refinancers to estimate their monthly mortgage payments and understand the total interest they’ll pay over the life of their loan.
How to Use This Calculator
- Enter the loan amount you plan to borrow.
- Enter the annual interest rate you’ve been offered.
- Select the loan term in years.
- Click ‘Calculate’ to see your estimated monthly payment and total interest.
Formula & Methodology
The formula used to calculate the monthly mortgage payment is the Mortgage Payment Formula:
M = P [ i(1 + i)^n ] / [ (1 + i)^n — 1 ]
Where:
- M = monthly mortgage payment
- P = principal loan amount
- i = monthly interest rate
- n = number of months
Real-World Examples
Data & Statistics
| Loan Type | Average Rate |
|---|---|
| 30-year fixed | 3.10% |
| 15-year fixed | 2.41% |
| 5/1 ARM | 2.52% |
Expert Tips
- Shop around for the best interest rate.
- Consider a shorter loan term to save on interest.
- Use an online mortgage calculator to estimate closing costs.
Interactive FAQ
What is an interest rate?
The interest rate is the percentage of the loan amount that the lender charges for borrowing the money.
For more information, see the CFPB’s guide to mortgages.