How the mortgage calculator works
Enter the amount you plan to borrow, the annual interest rate offered by your lender, and the length of the loan in years. The calculator converts the annual rate to a monthly rate and the term to a number of monthly payments, then applies the standard amortization formula to find a fixed monthly payment.
Understanding total interest
Because interest is charged on the outstanding balance, longer terms mean you pay interest for more years. Comparing total interest across different rates and terms is often more revealing than comparing monthly payments alone.