Loan Payment Calculator
Formula
M = P × [r(1+r)^n] / [(1+r)^n − 1]
The monthly payment is calculated using the amortization formula, where P is the loan principal, r is the monthly interest rate (annual rate / 12 / 100), and n is the total number of payments (years × 12).
Frequently Asked Questions
How is a monthly mortgage payment calculated?
Using the amortization formula: M = P[r(1+r)^n]/[(1+r)^n-1], where P is the loan amount, r is the monthly interest rate, and n is total number of monthly payments.
What is a good mortgage interest rate?
Rates vary by market conditions, credit score, and loan type. Generally, anything below the current national average is considered good. Check current rates with multiple lenders.
Should I choose a 15 or 30 year mortgage?
A 15-year mortgage has higher monthly payments but much less total interest. A 30-year has lower monthly payments but you pay more interest over time. Choose based on your monthly budget.
Does this include taxes and insurance?
No. This calculates principal and interest (P&I) only. Your actual monthly payment may include property taxes, homeowner's insurance, and PMI.