David Chen is a Certified Financial Analyst with over 10 years of experience in financial modeling and real estate investment.
Use this mortgage calculator to estimate your monthly mortgage payment, including both principal and interest. Simply enter the loan amount, interest rate, and loan term, and the calculator will compute your payment.
Mortgage Calculator with Principal & Interest
Mortgage Calculator with Principal & Interest 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 amount borrowed.
- Interest Rate: The annual interest rate of the loan.
- Loan Term: The number of years over which the loan will be repaid.
Related Calculators
What is a Mortgage with Principal & Interest?
A mortgage with principal and interest means that each payment you make goes towards both paying off the loan principal (the amount you borrowed) and the interest charged on that loan. Over time, the portion of your payment applied to principal increases, while the interest portion decreases.
How to Calculate Mortgage with Principal & Interest (Example)
- Step 1: Enter the loan amount, interest rate, and loan term.
- Step 2: Click “Calculate” to compute your monthly mortgage payment.
- Step 3: Review the breakdown of your monthly payment and steps taken to calculate it.
Frequently Asked Questions (FAQ)
What is the difference between principal and interest? Principal is the original amount of money you borrowed, while interest is the cost of borrowing that money.
How can I reduce my mortgage payment? You can reduce your payment by refinancing at a lower interest rate or increasing your down payment.
Can I calculate my mortgage payments without an interest rate? No, interest rates are required to calculate the cost of borrowing money over time.