Mortgage Calculator Interest and Principal Only Loan

Reviewed by: David Chen, CFA
David Chen is a Certified Financial Analyst with expertise in mortgage calculation and loan structuring.

This calculator helps you estimate the principal and interest of your mortgage loan, ensuring you can plan your financial future effectively.

Mortgage Calculator – Interest and Principal Only Loan

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Mortgage Formula

Q = P * (F / 100) / (1 - (1 + F / 100)^(-T))

Formula Source: Investopedia

Variables:

  • P: Principal amount of the loan
  • F: Interest rate per period
  • T: Number of periods (loan term)
  • Q: Monthly payment

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What is Mortgage Calculator?

This tool calculates the monthly payment for a mortgage loan, taking into account principal, interest, and term. It helps homebuyers plan and estimate their monthly budget.

How to Calculate Mortgage Loan (Example)

  1. Step 1: Enter the loan principal, interest rate, and loan term.
  2. Step 2: Click “Calculate” to see your monthly payment.
  3. Step 3: Review the calculation steps for additional details.

Frequently Asked Questions (FAQ)

How do I calculate the mortgage payment? The mortgage payment is calculated using the loan amount, interest rate, and term length using the formula above.

Can I change the loan term? Yes, you can adjust the loan term (e.g., 15 years, 30 years) to see how it affects your payment.

What happens if I pay off the loan early? If you pay off the loan early, your remaining principal will reduce the total interest paid.