David Chen is a Certified Financial Analyst specializing in mortgage and loan strategies.
This mortgage calculator allows you to calculate monthly mortgage payments based on the principal, interest, loan term, and other factors. Enter the details and calculate your mortgage payment below.
Mortgage Calculator – Interest & Principal Only
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Mortgage Formula
Monthly Payment = P * r * (1 + r)^n / ((1 + r)^n - 1)
Where:
P = Loan Amount
r = Monthly Interest Rate (Annual Rate / 12)
n = Number of Payments (Loan Term in Years * 12)
Formula Source: Investopedia
Related Calculators
What is a Mortgage?
A mortgage is a loan used to buy a home or other real estate. It is typically paid back in monthly installments over a fixed period. The interest rate is the cost of borrowing the loan, and the principal is the amount borrowed.
How to Calculate a Mortgage (Example)
- Step 1: Enter the loan amount, interest rate, and loan term.
- Step 2: Click “Calculate” to find your monthly payment.
- Step 3: Review the detailed calculation steps below for more insights.
Frequently Asked Questions (FAQ)
What is included in the mortgage payment? Monthly mortgage payments typically include principal, interest, taxes, and insurance.
Can I pay off my mortgage early? Yes, many mortgages allow early repayment without penalties, though some may charge a fee.
How does interest affect my mortgage payment? The higher the interest rate, the higher your monthly payments will be.