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How do you calculate the monthly payment on a mortgage?

To calculate your mortgage payment manually, apply the interest rate (r), the principal (B) and the loan length in months (m) to this formula: P = B[(r/12)(1 + r/12)^m)]/[(1 + r/12)^m - 1]. This formula takes into account the monthly compounding of interest that goes into each payment.

What is the formula for calculating monthly mortgage?

Formula to Calculate Mortgage Payments The Formula. Principal amount: This is the amount of the mortgage or amount you want to borrow. ... Determine Overall Interest. If you want to know how much interest you'll pay over the life of the loan, multiply the amount of your monthly payment by the term of ... Calculating Your Payment. ...


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