A Certified Financial Analyst with over 10 years of experience in financial planning and mortgage calculations.
Use the mortgage payment calculator to calculate the monthly payment based on the principal, interest rate, and loan term. The fourth variable can be calculated based on the other three inputs.
Mortgage Payment Calculator (Canada RBC Login)
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Mortgage Payment Formula
Monthly Payment = P × r × (1 + r)^n / ((1 + r)^n – 1)
Formula Source: Investopedia
Variables:
- P: The loan principal (amount borrowed).
- r: The monthly interest rate (annual rate divided by 12).
- n: The number of payments (loan term in years multiplied by 12).
- Q: The monthly mortgage payment.
Related Calculators:
What is a Mortgage Payment?
The mortgage payment is the amount a borrower must pay monthly towards repaying a loan used to buy property. It includes both the principal and the interest, and sometimes, taxes or insurance may be included in the payment.
How to Calculate Mortgage Payment (Example):
- Step 1: Enter the loan principal, annual interest rate, and loan term.
- Step 2: Click “Calculate” to get the monthly payment.
- Step 3: Review the results and adjust the inputs as necessary.
Frequently Asked Questions (FAQ):
What is the best loan term for a mortgage? A 25-year mortgage term is common in Canada, but a shorter term can result in less interest paid over the life of the loan.
How does the interest rate affect my mortgage payment? A higher interest rate increases the monthly payment. A lower rate decreases it.
Can I calculate my mortgage with just the monthly payment? Yes, if you know the principal, interest rate, and loan term, you can calculate the monthly payment.