Most standard mortgages use a fixed-rate monthly payment formula. To calculate your monthly principal and interest payment (M), we use the following equation:
M=P[r(1+r)^n / (1+r)^n -1]
Where:
P = The principal loan amount.
r = Your monthly interest rate (annual rate divided by 12).
n = Total number of monthly payments (loan term in years multiplied by 12).
Why Use a Mortgage Calculator?
Buying a home is the largest investment most people make. Using this tool allows you to:
Estimate Monthly Costs: Ensure the payment fits your budget.
Compare Rates: See how a 0.5% difference in interest can save you thousands over 30 years.
Plan Down Payments: Visualize how a larger upfront payment reduces your long-term interest.