How Accurate are Online Mortgage Calculators? Loan Amount ($): Annual Interest Rate (%): Loan Term (Years): Monthly Payment ($): Online mortgage calculators are fairly accurate. However, since they don't fully consider the individual situation and number of fees, taxes, and other accrued charges, the estimate might differ from the actual amount. function calculate() { var loan_amt = document.forms[0]["Loan Amount"].value; var apr = document.forms[0]["Annual Interest Rate"].value/100; var loan_term = document.forms[0]["Loan Term"].value; var monthly_payment = loan_amt*(apr/12*(1+apr/12)^loan_term)/((1+apr/12)^loan_term-1); document.forms[0]["Monthly Payment"].value = monthly_payment; } How Accurate are Online Mortgage Calculators? These days, most people decide to taake out a mortgage loan in order to buy a home. One of the first steps in trying to understand how much you can afford to borrow is to use an online mortgage calculator to find out how much you can borrow. But how accurate are online mortgage calculators and can they really help you figure out your borrowing capacity? First and foremost, it is important to understand that online mortgage calculators are only estimations. They are designed to give you a rough idea of how much you can borrow. The calculations used in such calculators take into account factors like your income, credit score, savings, type of loan, and the size of the loan etc. It is not designed to give you a definitive answer since other factors, such as the lender's criteria would also affect the final amount that you can borrow. Despite this, online mortgage calculators are still very useful in providing you with an indication of what you can afford. This allows you to quickly and easily narrow your search when looking for a suitable mortgage loan. It can show you how different rates affect your borrowing capacity and show you what your expected monthly payments may be. It is important to remember that online mortgage calculators cannot provide you with a definitive answer. Ultimately, the lender is the only one who can provide you with an exact number. It is also important to note that the calculator takes into account only the general criteria. Your circumstance might differ from the norm, and this will affect the results of the calculator. For example, if you have extra savings that you can use as a deposit, this will increase your borrowing capacity. In conclusion, online mortgage calculators are useful in helping you to get a rough idea of how much you can borrow. They can help you narrow your search, and preparing you for the discussions you may have with a real estate agent or mortgage broker. However, the calculator is only a rough estimate, and should not be relied upon for providing an exact answer. The actual amount of money a lender is willing to give you is ultimately decided by the lender upon assessing all factors.