 # Calculating Mortgage Payments: A Guide ## Formula for Calculating Mortgage Payments

The formula for calculating mortgage payments is:

M = P[r(1+r)^n]/[(1+r)^n-1]

where

• M is the monthly mortgage payment.
• P is the principal loan amount.
• r is the monthly interest rate, expressed as a decimal.
• n is the total number of payments.

For example, if you take out a \$100,000 loan with a 6.5% interest rate and a 30-year term, the monthly mortgage payment would be \$541.08.

## Formula for Calculating Monthly Payments

The formula for calculating the monthly payment for a mortgage is:

M = P[i(1+i)^n]/[(1+i)^n-1]

where

• M is the monthly mortgage payment.
• P is the principal loan amount.
• i is the monthly interest rate, expressed as a decimal.
• n is the total number of payments.

For example, if you take out a \$150,000 loan with a 5% interest rate and a 15-year term, the monthly mortgage payment would be \$1,340.14.

## Calculating Principal and Interest Payments

The monthly principal and interest payments for a mortgage loan can be calculated by using the following formula:

P = L[i(1+i)^n]/[(1+i)^n-1]

where

• P is the principal and interest payment.
• L is the loan amount.
• i is the monthly interest rate, expressed as a decimal.
• n is the total number of payments.

For example, if you take out a \$250,000 loan with a 4.5% interest rate and a 30-year term, the monthly principal and interest payment would be \$1,263.37.

## Calculating a 30-Year Fixed Mortgage

The formula for calculating a 30-year fixed mortgage is:

M = P[i(1+i)^360]/[(1+i)^360-1]

where

• M is the monthly mortgage payment.
• P is the principal loan amount.
• i is the monthly interest rate, expressed as a decimal.
• 360 is the number of payments over the 30-year term of the loan.

For example, if you take out a \$200,000 loan with a 6.5% interest rate, the monthly mortgage payment would be \$1,264.14.