Formula
The payment is the standard fixed-rate mortgage payment:
Payment = P × r × (1 + r)^n / ((1 + r)^n − 1)
P is the amount borrowed, r is the annual rate divided by 12, and n is the number of months.
Assumptions
- The rate stays fixed.
- Taxes, insurance, and mortgage insurance are not included.
Worked example
A $320,000 mortgage at 6.5% for 30 years has a principal and interest payment of $2,022.62.
Input definitions
- Loan amount
- The amount borrowed after the down payment.
- Years
- The fixed term, from 1 to 50 years.
Limitations
This is an estimate, not a loan offer, tax filing, or investment advice. The currency control changes the symbol only.
Questions
Why is tax missing?
This page answers the loan payment only. Add tax and insurance on the mortgage calculator.
Does a shorter term lower the payment?
No. A shorter term raises the payment and lowers total interest.