Reviewed by: David Chen, CFA
David Chen is a Certified Financial Analyst with over 10 years of experience in mortgage analysis and financial planning.
David Chen is a Certified Financial Analyst with over 10 years of experience in mortgage analysis and financial planning.
Free Online Mortgage Calculators Amortization Tables
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Formula
Monthly Payment = Loan Amount × [Interest Rate / 12] / [1 – (1 + Interest Rate / 12)^(-Loan Term × 12)]
Formula Source: Investopedia
Variables:
- Loan Amount: The total loan borrowed.
- Interest Rate: The annual interest rate applied to the loan.
- Loan Term: The duration of the loan in years.
Related Calculators:
What is a Mortgage?
A mortgage is a loan used to purchase real estate, where the property serves as collateral for the loan. The borrower makes monthly payments toward the loan until it is paid off, which typically takes several years.
How to Calculate Mortgage (Example)
- Step 1: Enter your loan amount, interest rate, and loan term.
- Step 2: Click “Calculate” to see your monthly payment.
- Step 3: Use the payment information to plan your finances.
Frequently Asked Questions (FAQ)
What is an amortization table? An amortization table shows how each payment is split between principal and interest throughout the life of a loan.
How is the monthly mortgage payment calculated? The monthly payment is calculated based on the loan amount, interest rate, and loan term.
Can I pay off my mortgage early? Yes, paying off your mortgage early can save you money on interest.