Monthly House Payment Calculator
to Calculate House Payments

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Helps you to determine the monthly installment, total interest, total payments, and required work hours to repay a home mortgage.

This free online Monthly House Payment Calculator will calculate the monthly payment and total interest cost associated to a home loan repayment.

Plus, unlike other online financial mortgage calculators, the monthly house payment calculator on this page will also calculate the number of hours you will need to allocate to working in order to repay the home loan's principal and interest.

If you would like to calculate a house payment that includes principal, interest, tax, insurance, and PMI, please visit the PITI Mortgage Calculator.

The Opportunity Cost of Mortgage Interest

In case you're not familiar with the term, opportunity cost refers to the value of what you give up when choosing one course of action over all other alternative courses of action.

As it applies to money, if you spend a given amount of money to purchase something that loses its value with time and use, you simultaneously give up the right spend that money on anything else of equal or lesser value.

In the case of taking out a home loan to purchase a house, one of the things you will be spending money on is interest charges. And while the house may grow in value over time (pure speculation), the money you pay out for interest charges represents a value that is lost forever.

In order to determine the opportunity cost of the interest charges you will pay on a home loan, you first need to determine how much these interest charges will add up to over the course of the home loan repayment term (the monthly house payment calculator on this page will help you to do just that).

Once you have totaled up the home mortgage interest charges, the next step is to ask yourself, "What else could I spend that money on if I chose not to borrow money to purchase a home?"

If you're like most people who ask themselves this question, one of the answers that may not have occurred to you is, "time off from work."

The Opportunity Cost of Lost Time Off From Work

Every dollar you spend on home loan interest charges is money that could have been used to meet your other financial obligations. This means that if your cost of living averages out to $100 per day, then every $100 you spend on interest charges represents one day that you could have taken off from work had you paid cash for a home rather than borrowed the money to purchase it. The monthly house payment calculator on this page will estimate how many 40-hour work weeks it will take you just to pay the interest charges on your home loan.

Sure, we all need somewhere to live. But we do have a choice as to whether we satisfy that need with a $30,000 mobile home or with a $3,000,000 ocean-front mansion.

Unfortunately most of us have been brainwashed into believing that we are entitled to the instant gratification we can get from purchasing a home without having to pay cash for it up front. And the reason no one is trying to convince us to do otherwise is because no one stands to get rich from promoting the concept of saving up and paying cash for the things we desire.

In fact, the reason you won't likely find another monthly house payment calculator on the web that calculates the opportunity cost of taking out a home mortgage is because all of the other calculators are created for mortgage and real estate companies. And the last thing they want you to do is to become aware of the drawbacks to following their advice.

I know this may be difficult for you to comprehend, but it is possible to purchase a home with cash -- thereby preserving a mountain of your free time for other things besides working to pay the interest on your mortgage. It's called the "Grow Slow, Pay As You Go" method of purchasing a home.

Grow Slow, Pay As You Go Method of Home Buying

Here is what mortgage companies don't want you to do:

  1. Rent or buy the smallest, most inexpensive mobile home, house or apartment that you can exist in.
  2. Estimate the size of the mortgage you could qualify for based on what the mortgage companies are telling you.
  3. Each month deposit the difference between your monthly rent or house payment and what the mortgage companies say you can afford to be paying each month. Also include any money you will save in home ownership costs (insurance, utilities, maintenance, repairs, property taxes, etc.) from buying or renting a much smaller residence.
  4. Once your savings has grown to the point that you can afford to pay cash for a larger residence, pay cash for the larger residence but continue to deposit the previous amount into your home buying savings account.
  5. Repeat step #4 as often as you deem necessary.

If you follow the Grow Slow, Pay As You Go home buying method, three things will happen.

First, you will fully appreciate every dwelling upgrade. After all, you can't fully appreciate a larger living space until you've live in a cramped living space. Nor can you fully appreciate a free standing home unless you've lived in a thin-walled apartment surrounded by other apartments.

The second thing that will happen, is that over time you will be able to afford twice the house you could have afforded if you had bought into the instant gratification home buying plan promoted by real estate and mortgage companies. This is due to all of the interest you will earn on the invested mortgage payments you won't have to make, combined with all of the mortgage interest charges you will save by not having a mortgage.

And finally, the third thing that will happen is that at some point you can choose to stop buying larger homes and instead simply use your investments to supplement your income -- meaning you can take more time off from work to spend time doing things that are most important to you.

If you opt for the popular instant gratification home buying plan (Grow Fast, Pay Later), all of the interest charges you will pay will only insure that the top executives of your home's mortgage company will have more time to do what is important to them.

With that, let's use the Monthly House Payment Calculator to calculate the monthly payment, total interest cost, and required work hours associated to repaying an amount of money borrowed to purchase a home.

Calculate House Payment and Interest Cost
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Instructions: Enter the home loan amount, the annual percentage rate (APR), the home loan term in months, and your real hourly wage (optional), then click the "Calculate House Payment" button.

Mouse over the blue question marks for a further explanation of each entry field. More in-depth explanations can be found in the glossary of terms located beneath the Monthly House Payment Calculator.

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Help Home loan amount ($):
Help Annual interest rate (%):
Help Number of years (#):
Help Real hourly wage ($):
Help Monthly house payment:
Help Total of all monthly house payments:
Help Interest cost:
Help Number of work hours to pay interest charges:
Help 40-hour work weeks to pay interest charges:
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Monthly House Payment Calculator Glossary of Terms

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Home loan amount: The dollar amount of the home loan (principal amount). This is usually what's left after subtracting your down payment from the total purchase price of the home.

Annual percentage rate: The annual percentage rate (APR) of the home loan.

Home loan term in years: The home loan term in number of years. The monthly house payment calculator will multiply this entry by 12 to arrive at the total number of monthly payments.

Real hourly wage: If you would like the monthly house payment calculator to calculate the number of hours you will have to work to just to pay the mortgage interest charges, enter your real hourly wage in this field. If you don't know your Real Hourly Wage, be sure to visit the Real Hourly Wage Calculator.

Amortization schedule: This is the breakdown of each periodic payment made to repay the amount borrowed. Each line of the amortization schedule shows the total amount paid for the period, along with the portion that went to pay down the principal and the amount that was used to pay the current period interest charges. The last column is the new balance owed following that period's payment (previous balance minus principal portion of current payment). The monthly house payment calculator allows you to choose whether or not you want the results to include a monthly amortization, an annual amortization, or no amortization schedule at all.

Monthly house payment: This how much your monthly house payment will be. Each payment includes an interest charge that is calculated by multiplying the current balance owed by the monthly interest rate (apr ÷ 100 ÷ 12). The amount left after subtracting the current interest charge will be used to lower your balance.

Total of all monthly house payments: This is the total of all of your monthly house payments. If the mortgage repayment term is 30 years, the total of all your monthly car payments will be 360 times (years X 12) the house payment (minus any difference between the monthly payment amount and final payment amount).

Interest cost: This is how much interest you will pay between now and when you finish the home loan repayment.

Required work hours: This is how many hours you will need to allocate to working in order to pay just the mortgage interest charges. This does not include all of the hours you will need to work to pay for the down payment, principal, and all of the upfront and ongoing costs that come with buying and owning a home.

Required 40-hour work weeks: This is how many 40-hour work weeks it will take you to pay just the mortgage interest charges. Again, this does not include all of the 40-hour work weeks it will take you to pay for the down payment, principal, and all of the upfront and ongoing costs that come with buying and owning a home.

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