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Frequently Asked Questions

How do you calculate the monthly payment on a mortgage loan?

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.

How do you calculate fixed rate mortgage?

Use the formula P= L[c (1 + c)n] / [(1+c)n - 1] to calculate your monthly fixed-rate mortgage payments. In this formula, "P" equals the monthly mortgage payment.


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