Mortgate Calculator

Mortgage Calculator

The mortgage calculator is a handy tool, it can tell you how much you will be paying back each month for the loan you have taken out and it tells you how much interest you will be paying on your loan.

To use the calculator you need input how much you require to loan from your source, the number of years you will be paying the money back and the interest rate you will be paying back at. Once you have typed this in click ‘Calculate Mortgage’ this will instantly work out how much you will be required to pay back per month and how much interest there will be.

This tool can be used in sort of loaning agreement, even if it is not in the same currency as long as the rate of interest is correct and the amount you have loaned it will give you the correct loan rate that you will be paying.

To calculate the monthly fee you will be paying you do the formula, (A * R) / (Y *12). R is equal to the rate, Y is equal to the number of years you have inputted and A is equal to the amount of money you are borrowing.

To make this calculate work we divide the rate you input into the application by 100, then we times the amount by that number, and then divide this by the number of years times 12 to give us the number of months you will be paying back this money. This gives us the amount of money you will have to pay back each month.

To calculate the interest that you will be paying on top of the loan, by itself. We use the following formula. (A*R)/12) * (1/(1-(POW(1/(1+R), Y). This formula looks complicated but it is pretty simple, POW basically means the numbers before the commas times the number after the comma. A is equal to Amount again, rate is equal to your rate inputted divided by 100 and Y is equal to the number of years you inputted into the calculator.

From this formula it calculates the amount of money you are paying as interest by itself. This can help you see if you are being ripped off by the people or company you have lent the money or currency from.

Rates of interests are always changing, later on you may need to come back and check the results. If you pay at one interest for half a year and they decided to change the interest rate you will need to input .5 of a year which is equal to half a year. This will work the same in the calculator and will give you another very accurate result for your mortgage situation.