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Loan amount  An annual interest rate
  %
Mortgage terms
   

Calculation Results:
Mortgage Calculation Formula: M = P [ i(1 + i)n ] / [ (1 + i)n - 1]

  • P =principal, the initial amount of the loan

  • i = monthly interest rate, r/12

  • n = loan term, number of months

  • M = monthly payment

For our $150,000 mortgage at 6.5% compounded monthly for 20 years, we would first solve for i as i=0.065/12=0.065=0.00542 and n as 12 x 20=240, monthly payments M=150000X[0.00542X(1+0.00542)240]/[(1+0.00542)240-1]=1118.36.
For the most part every mortgage is calculated based on this traditional formula. It takes into account the fact that mortgages use compounding interest instead of simple interest.
Replace your old car? Want a loan to make some home improvements? Or simply consolidate all your debts into one manageable monthly payment?  Determine the minimum income you’ll need and compare monthly payments, then you'll find the right type loan  for you.



Top Use:    Mortgage Calculator - Amount:3000000 Interest rate:5% term:30Years

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