How To Calculate Mortgage Repayments

To find out your mortgage repayment, simply put the following information into the calculator, and you will get the result.

  • Loan amount: The total amount of money you’re borrowing from the lender to purchase your property.

  • Loan term: The duration over which you’ll repay the loan, typically measured in years.

  • Interest rate: The percentage of the loan amount the lender uses to calculate interest, influencing your overall repayment amount.

  • Loan repayment type: The method by which you’ll repay the loan, such as principal-and-interest payments or interest-only payments.

  • Frequency: How often you’ll make repayments, whether monthly, fortnightly or weekly.

The formula for calculating monthly mortgage repayments is:

M = P * [r * (1 + r)^n] / [(1 + r)^n – 1],

where M is the monthly repayment amount, P is the principal (loan amount), r is the monthly interest rate (annual interest rate divided by 12), and n is the total number of monthly payments (loan term in years multiplied by 12).

 
 

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Disclaimer: The above results are based on the limited information you have provided. This calculator is a guide only, please seek financial advice before making any decision.

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