How to Calculate Mortgage Payments
2025-01-15
Understanding Mortgage Payment Calculations
Calculating your mortgage payment is essential for home buying decisions. The monthly payment depends on the loan amount, interest rate, and loan term.
The Mortgage Payment Formula
M = P × [r(1 + r)^n] / [(1 + r)^n - 1]
Where: M = Monthly payment, P = Principal loan amount, r = Monthly interest rate (annual rate ÷ 12), n = Number of payments (years × 12)
Use our mortgage calculator for instant results.