David Chen is a Certified Financial Analyst with over 10 years of experience in finance and mortgage calculations.
Enter the necessary values to calculate your mortgage payment split between principal and interest.
Mortgage Calculator – Interest and Principal Only Payments
Mortgage Calculator Formula
Monthly Payment = Principal × Monthly Interest Rate / (1 – (1 + Monthly Interest Rate) ^ -Term)
Formula Source: Investopedia
- Principal: The total loan amount.
- Interest Rate: The annual interest rate as a percentage.
- Loan Term: The loan term in years.
Related Calculators
What is Mortgage Payment?
A mortgage payment is the amount of money a borrower must pay to their lender each month for the term of their loan. This payment consists of both principal (the loan amount) and interest (the cost of borrowing). A common way to calculate a mortgage payment is using an amortization formula, which factors in the loan amount, interest rate, and loan term.
How to Calculate Mortgage Payment (Example)
- Step 1: Enter the principal loan amount, interest rate, and loan term.
- Step 2: Click “Calculate” to get your monthly mortgage payment.
- Step 3: Review the calculation steps for further clarity.
Frequently Asked Questions (FAQ)
What affects my mortgage payment? Your mortgage payment is determined by the loan amount, interest rate, and term length. A higher loan amount or interest rate will increase your monthly payment.
Can I change my mortgage payment? Yes, your mortgage payment can be modified by refinancing your loan or by changing your loan terms.
What is a fixed-rate mortgage? A fixed-rate mortgage means your interest rate stays the same for the entire loan term, which means your monthly payments won’t change.