Mortgage Calculator
Interest rate: The annual interest rate on the mortgage loan.
Loan term: The length of time, in years, you have to repay the loan.
With these details, you can calculate your monthly mortgage payment using the following formula:
M = P [i(1 + i)^n] / [(1 + i)^n - 1]
Where: M = Monthly mortgage payment P = Loan amount i = Monthly interest rate (annual interest rate divided by 12) n = Total number of monthly payments (loan term multiplied by 12)
Let's say you're borrowing $200,000 with an interest rate of 4.5% for a 30-year term. Here's how you can calculate your monthly mortgage payment:
P = $200,000 i = 4.5% / 12 = 0.375% (decimal value: 0.00375) n = 30 years * 12 months = 360
Now, plug these values into the formula:
M = $200,000 * [0.00375 * (1 + 0.00375)^360] / [(1 + 0.00375)^360 - 1]
After performing the calculations, you'll find that your monthly mortgage payment is approximately $1,013.37.
Keep in mind that this calculation doesn't include additional costs like property taxes, homeowners insurance, or mortgage insurance if required. It only gives you an estimate of your principal and interest payment.