Mortgage Calculator
The Quick Mortgage Calculator allows you to estimate the monthly payment due as well as other financial costs associated with mortgages. There are options to include additional payments or annual percentage increases in ongoing mortgage expenses. The calculator is primarily intended for use by residents of Quebec.
Mortgage Calculator
Result:
Your estimated monthly payment: $0.00
A mortgage calculator can estimate the monthly payments of a loan based on the amount borrowed, the interest rate, and the term of the loan. Here are the main elements taken into account:
1. Mortgage Payment Form
The basic formula for calculating the monthly mortgage payment is:M=P×r(1+r)n(1+r)n−1M = P \times \frac{r(1 + r)^n}{(1 + r)^n – 1}M=P×(1+r)n−1r(1+r)n
Where:
- M = Monthly Payment
- P = Loan Amount (Borrowed Capital)
- r = Monthly interest rate (annual rate divided by 12)
- n = Total number of payments (loan term in months)
2. Variables influencing the loan
- Interest rate : The higher the interest rate, the larger the monthly payment.
- Loan term : A longer term reduces the monthly payment but increases the total cost of interest.
- Down payment: A higher down payment reduces the loan amount and, therefore, the payments.
3. Features of an online calculator
- Amortization option : Compare the impact of the different loan terms (15, 20, 25 years).
- Addition of property taxes and insurance : To calculate the actual cost of the loan.
- Prepayments : See the impact of accelerated repayment on interest savings.
4. Example of calculation
If you borrow $300,000 at a rate of 5% over 25 years, the payment would be approximately $1,745 per month (excluding taxes and insurance).
