Enter your loan amount, interest rate, and loan term into the calculator to determine your monthly mortgage payment.

Mortgage Payment Calculation Formula

The following formula is used to calculate the monthly mortgage payment. 

Monthly Payment = (P * r) / (1 - (1 + r)^-n)

Variables:

  • P is the loan amount (Principal) ($)
  • r is the monthly interest rate (annual interest rate / 12)
  • n is the number of monthly payments (loan term * 12)

To calculate the monthly payment, multiply the principal by the monthly interest rate, then divide by the result of 1 minus the power of 1 plus the monthly interest rate raised to the negative number of payments.

What is Mortgage Payment Calculation?

Mortgage payment calculation refers to the process of determining the amount of your monthly mortgage payment. This involves understanding your loan amount, the interest rate, and the loan term. Proper mortgage payment calculation ensures accurate budgeting and financial planning, helping you manage your monthly expenses effectively.

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