Reviewed by: David Chen, CFA
David Chen is a Certified Financial Analyst with over 10 years of experience in mortgage planning.
David Chen is a Certified Financial Analyst with over 10 years of experience in mortgage planning.
Use this calculator to determine your monthly mortgage payment, considering prepayments and other variables.
Mortgage Calculator with Prepayment Options
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Mortgage Formula
Monthly Payment = [Loan Amount × Monthly Interest Rate] ÷ [1 – (1 + Monthly Interest Rate)^(-Loan Term)]
Formula Source: Investopedia
- Loan Amount: The amount of money borrowed.
- Interest Rate: The annual interest rate on the loan.
- Loan Term: The number of years to repay the loan.
- Prepayment Amount: An additional amount paid toward the loan principal.
Related Calculators
What is Mortgage Prepayment?
Mortgage prepayment is when you make an additional payment toward your mortgage loan, typically for reducing the principal balance, which can result in lower interest over time.
How to Calculate Mortgage Payment with Prepayment (Example)
- Step 1: Enter your loan amount, interest rate, and loan term.
- Step 2: Enter any additional prepayment amount you plan to make.
- Step 3: Click “Calculate” to see your new monthly mortgage payment.
Frequently Asked Questions (FAQ)
What happens if I prepay my mortgage? Prepaying your mortgage reduces the loan balance, which lowers the total interest you pay over time.
Can I make extra payments anytime? Yes, most lenders allow you to make prepayments without penalty, but it’s always good to check with your lender.