Enter the home price, down payment, loan term, and interest rate into the calculator to determine your monthly mortgage payment.
Mortgage Payment Calculation Formula
The following formula is used to calculate the monthly mortgage payment.
Monthly Payment = \frac{Loan Amount \times Monthly Interest Rate}{1 - (1 + Monthly Interest Rate)^{-Number of Payments}}
Variables:
- Loan Amount is the amount borrowed after the down payment ($)
- Monthly Interest Rate is the annual interest rate divided by 12 (%)
- Number of Payments is the total number of monthly payments over the loan term
To calculate the monthly payment, multiply the loan amount by the monthly interest rate, divide by one minus the result of one plus the monthly interest rate raised to the negative power of the number of payments.