This page helps you calculate fixed monthly mortgage payments. The formula being used is:
P = L[c(1 + c)n] / [(1 + c)n - 1]
P = Your fixed monthly payment.
L = The total loan amount.
c = The interest rate. NOTE: If c = 6%, c is calculated as 0.06/12 ==> 0.005
n = The term or number of months of the loan.
For more information about this formula, check out the Mortgage Professor's website.
For example, if your loan amount is $121,200, your interest rate is: 2.875%, and the term of your loan is 180 months (15 years), your fixed monthly payment will be $829.72 dollars. To run this scenario, press the Run Example Scenario button below.
To run your own mortgage scenario, enter the appropriate values below and press the Calculate Your Monthly Payment button.