Reviewed by: David Chen, CFA
David Chen is a Certified Financial Analyst with expertise in mortgage and financial planning.
David Chen is a Certified Financial Analyst with expertise in mortgage and financial planning.
Mortgage Payment Calculator
Not calculated yet.
Mortgage Payment Formula
Monthly Payment = [P × r × (1 + r)^n] / [(1 + r)^n – 1]
Formula Source: Investopedia
Variables:
- P: Loan Amount
- r: Monthly Interest Rate (Annual Interest Rate / 12)
- n: Number of Monthly Payments (Loan Term * 12)
Related Calculators
What is a Mortgage Payment?
A mortgage payment is a regular payment made by a borrower to a lender to repay a loan for the purchase of a property. It typically includes principal and interest, and may also include property taxes and insurance payments.
How to Calculate Mortgage Payments (Example)
- Step 1: Enter the loan amount, interest rate, and loan term.
- Step 2: Click “Calculate” to see the monthly payment.
Frequently Asked Questions (FAQ)
What is the best mortgage term? The best mortgage term depends on your financial situation. Shorter terms offer lower interest rates but higher monthly payments.
How does my credit score affect my mortgage? A higher credit score typically results in better loan terms and lower interest rates.