Reviewed by: David Chen, CFA
David Chen is a Certified Financial Analyst with over 10 years of experience in finance and mortgage management.
David Chen is a Certified Financial Analyst with over 10 years of experience in finance and mortgage management.
Use this tool to calculate your monthly mortgage payments based on the loan amount, interest rate, and term of the loan.
House Mortgage Calculator BMO
House Mortgage Formula
Monthly Payment = P * (r * (1 + r)^n) / ((1 + r)^n – 1)
Formula Source: Investopedia
Variables
- P: Loan amount (Principal)
- r: Monthly interest rate (Annual interest rate / 12)
- n: Number of payments (Loan term in years * 12)
Related Calculators
What is a House Mortgage?
A house mortgage is a loan used to purchase a home, where the property itself serves as collateral. Typically, the loan is repaid over a long period, with monthly payments that include both principal and interest.
How to Calculate House Mortgage (Example)
- Step 1: Enter your loan amount, interest rate, and loan term.
- Step 2: Click “Calculate” to determine your monthly payment.
Frequently Asked Questions (FAQ)
What is the best loan term? A 15-year loan term generally offers lower interest rates, while a 30-year term provides lower monthly payments.
How can I reduce my mortgage payment? Consider refinancing your loan, making a larger down payment, or extending the loan term.