Simulate Your Mortgage Like an Expert

Before embarking on a real estate project, it's vital to understand how your monthly repayment is calculated.

Monthly Payment Calculation

The monthly payment $M$ for a borrowed capital $K$ at a periodic interest rate $r$ over $n$ monthly payments is defined by the constant annuity formula:

$M = K \times \frac{r(1 + r)^n}{(1 + r)^n - 1}$

The Real Cost of Borrowing

The total cost of your loan is not limited to the interest rate. You must add all monthly payments and subtract the borrowed capital to see the cost of interest:

$Cost_{Total} = (M \times n) - K$

Don't forget to include loan insurance and processing fees in your overall consideration to get the APR (Annual Percentage Rate).

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