Enter the home price, down payment, loan term, and interest rate into the calculator to determine your monthly mortgage payment.
Mortgage Calculation Formula
The following formula is used to calculate the monthly mortgage payment:
Monthly Payment = (Principal * Monthly Interest Rate) / (1 - (1 + Monthly Interest Rate)^(-Loan Term in Months))
Variables:
- Principal is the loan amount after down payment ($)
- Monthly Interest Rate is the annual interest rate divided by 12 (%)
- Loan Term is the duration of the loan in months
To calculate the monthly payment, divide the annual interest rate by 12 to get the monthly rate, then use the formula above with the principal amount and loan term in months.
What is Mortgage Calculation?
Mortgage calculation refers to determining the monthly payment amount on a home loan based on the loan amount, interest rate, and loan term. This process helps in budgeting and planning for homeownership by providing an estimate of the monthly financial commitment.